South Balibago seals P450-M Iloilo water deal

SOUTH Balibago Resources Inc. (SBRI) Monday signed a memorandum of agreement with the local government unit of Iloilo City to construct, operate and maintain a water system to serve thousands of waterless households in Iloilo’s Jaro district.

The private firm was also granted a franchise through an ordinance by the administration of Mayor Jed Patrick Mabilog, a statement from the firm said.

SBRI’s proposed Level III water supply and distribution system includes a 10 million-liter per day (MLD) capacity water treatment plant in Pototan, Iloilo, a 17-kilometer transmission line and 60 kilometers of distribution network pipes in Jaro.

The P450-million project targets to serve an estimated 10,000 households and commercial establishments in the area.

SBRI president Jesus Zulueta Jr. signed the agreement on behalf of SBRI with Balibago Waterworks System Inc. president Cristino Panlilio acting as witness, while city councilor Leoni Gerochi signed as a witness and representative of the local government of Iloilo City.

The agreement grants SBRI a franchise to serve 34 subdivisions and three barangays in Jaro District for 25 years.

In return, the firm commits to provide potable water compliant with Philippine National Standards of Drinking Water and to supply its customers with water 24 hours a day, seven days a week and with a minimum pressure of 16 pounds per square inch.

Construction period is estimated at one year, while operations of the water system is expected to commence by the second half of 2017.

Noting that many households in Jaro District have no water supply, SBRI earlier submitted a proposal to Mayor Mabilog for a Level III water supply and distribution system in the area.

To ensure transparency, the firm’s proposal was subjected to executive and legislative scrutiny.

On March 3, Mayor Mabilog endorsed SBRI’s water supply and distribution proposal to the Iloilo City Council’s Committee on Energy and Public Utilities.

Finding merit in the proposal, committee chair councilor Leoni Gerochi called for a public forum last March 10 at the City Council Session Hall to consult Jaro residents and barangay officials.

The Metro Iloilo Water District (MIWD) was also present in the forum.

During the 11th regular session of the Iloilo City Council on March 15, council members agreed that it must proactively seek timely alternative solutions to the city’s perennial water problems.

It noted that while MIWD had monopolistic control of Iloilo City’s water system for decades, it was unable to provide adequate water delivery services to city residents.

“The proposal of SBRI appears to be a viable alternative to MIWD. It is not intended to replace MIWD nor is it a precursor for the latter’s abolition. It could, however, provide some healthy competition for MIWD,” the council said.

“In view thereof it is hereby recommended that a resolution be passed endorsing the proposal of South Balibago Resources Inc. to the Office of the City Mayor,” it added.

SBRI is a private water utility operating three franchises: Passi City, Iloilo (a Level III water supply and distribution system) and two bulk water contracts in Pototan, Iloilo and Corella, Bohol.

SBRI is a subsidiary of Balibago Waterworks System Inc., a 58-year-old private water utility with more than 50 water franchises in 16 provinces around the country.

It has been  recognized by the National Water Resources Board as one of the largest and most efficiently run private water utilities in the Philippines.