Villar-led consortium submits best offer for New Clark City water supply

MANILA, Philippines — The consortium made up of the Villar Group’s Prime Water Infrastructure Corp., PAVI and MGS Construction Inc. and Israel’s Tahal Group has emerged as the likely joint venture partner of the Bases Conversion and Development Authority (BCDA) for the  water and wastewater project in New Clark City after submitting the lowest bid.

In a statement yesterday, the BCDA said the consortium submitted an offer of P9.45 per cubic meter, besting the P11 per cubic meter bid by Manila Water Co. Inc. during the opening of technical and financial proposals for the project.

Representatives from the Commission on Audit as well as BCDA’s transaction adviser for the project, Asian Development Bank, were present during the opening of bids.

Nena Radoc, BCDA senior vice president and chief finance officer who serves as the chairperson of the joint venture selection committee, said Prime Water Consortium’s offer would still have to go through post-qualification process as part of the due diligence before the contract could be awarded.

“BCDA targets to sign the joint venture agreement with the winning partner by the end of the month,” she said.

The joint venture partner of the BCDA would be responsible for the design, building, financing, as well as operations and maintenance of water and wastewater infrastructure in the New Clark City located within the Clark Special Economic Zone.

Through the project, there would be an affordable and sustainable water source for the New Clark City.

BCDA said Prime Water Consortium’s proposed P9.45 per cubic meter rate will apply for the water supply, while another P9.45 per cubic meter would be charged for wastewater services to result in a total rate of P18.90 per cubic meter for the first five years of the 30-year joint venture period.

When compared with rates for other cities in the Philippines, Southeast Asia and globally, the winning bid is viewed as highly competitive and is expected to help encourage firms to locate in New Clark City.

Effective Jan.1 this year, the Metropolitan Waterworks and Sewerage System has approved the basic rates of P35.48 per cubic meter and P25.50 per cubic meter for concessionaires Maynilad Water Services Inc. and Manila Water, respectively.

New Clark City is being positioned as the country’s first smart, green and sustainable metropolis. 

Covering 60 hectares, Phase 1A of the development involves the construction of the National Government Administrative Center to house back-up offices of various government agencies.

Phase 1A likewise involves building a world-class sports complex to be used for the Philippines’ hosting of the Southeast Asian Games in 2019.