Manila Water eyes more projects for Metro Cebu

Seeing the dire need for additional water supply, an Ayala subsidiary is planning to invest in more water projects for Metro Cebu.

Presently, Manila Water, together with the Gaisano family-owned Vicsal Development Corporation and Stateland Equity Ventures Inc., which compose the Northern Waterworks and River of Cebu consortium, is working for the approval of the Carmen Bulk Water Supply project in Carmen town.

Aside from Carmen, Manila Water chief finance officer Sherisa Nuesa said that they are also looking for other opportunities and projects to develop.

As a fast growing city in terms of economy and population, she said that Cebu's need for water is also increasing rapidly. "Within Cebu, we also look for other projects to develop but as of now, we are focusing on Carmen project."

Nuesa explained that there are huge opportunities for water projects in the country because water is a major need.

In big cities like Manila and Cebu, she added that there is a need to put up modern sewerage treatment plants due to the increasing population and big volume of wastewater produce every day.

According to Nuesa, Manila Water is looking for more opportunities to develop water sources because many companies already lost interest in investing in water.

"A lot of international companies are retreating, that's why we have to come up," Nuesa said. "Since nine years ago, when we acquired Manila Water (former Manila Water Sewerage System), there is no major investment in water."

In the case of Carmen project, Nuesa said that several foreign companies have signified interest to join the consortium but only one has so far determined to push through. She added that they are now negotiating on the details of the agreement.

Last Friday, Vicsal Development Corporation signed a memorandum of agreement to join Northern Waterworks and River of Cebu consortium for the development of Carmen's bulk water project worth P2 billion.

If materialized, the project would become the first major source of water in northern Cebu.

Last May 17, the Metropolitan Cebu Water District and the Ayala consortium ended their three-year negotiation on the Carmen Bulk Water Supply project by signing a memorandum of agreement.

Under the MOA, Ayala will deliver up to 46,000 cubic meters of potable water to MCWD under a 40-year build-own-operate-transfer (BOOT) arrangement. The project is expected to increase the water district's current production capacity by about 26 percent and address the severe water shortage in Metro Cebu.

Northern Waterworks is set to start the project in 2007 and expected it to be operational by 2009. - Wenna A. Berondo