Ayala firm all set for P702-M Cebu plant
By Riza T. OlchondraPhilippine Daily Inquirer
The largest bulk water supply project in Cebu province is all set to start after the Ayala-led joint venture firm Cebu Manila Water Development Inc. (CMWD) signed two agreements with the municipal government of Carmen, which will host the P702-million water treatment plant.
According to Manila Water Company Inc., Manila Water Consortium (MWC) and the provincial government of Cebu make up the joint investment corporation called CMWD. In turn, MWC is composed of Manila Water, Vicsal Development Corp. and Stateland Inc.
Manila Water told the Philippine Stock Exchange that MWC will own 51 percent of the company and the provincial government of Cebu, 49 percent.
Manila Water said the first agreement covered the contribution of CMWD to the Municipal Development Fund of Carmen in return for tapping the Cantumog-Luyang River. The initial contribution of P0.30 per cubic meter will apply in the first five years of the joint venture’s operations. The rate is based on actual volume of water sold to distributors.
The agreement also describes how MWC will recoup P35 million in advances to CMWD.
The second agreement tackles the protection and management of the catchment area surrounding the proposed source at Luyang River. Under the second deal, the municipal government of Carmen and CMWD will create a foundation that will work on protecting the catchment area and make sure there is sustainable supply of raw water for the project.
The signing of the two agreements was followed by a groundbreaking ceremony at the proposed site of the water treatment plant with local government and CMWD officials in attendance.
The bulk water supply project will supply 35 million liters of potable bulk water a day. The water will be drawn from the Cantumog-Luyang River of the municipality of Carmen. The project will partly provide the water demands of households in the northern and central portions of Cebu province.
Currently, less than 50 percent of these areas are being served. The bulk water supply project will contribute to the development fund of Carmen municipality to support its infrastructure projects.
Manila Water said that, with the project, it would also get to rehabilitate aquifers in the province, which has deteriorated due to overextraction of groundwater.
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Tags: Ayala , Business , Manila Water , utility
