4 companies want shot at Carmen water project

CEBU, Philippines - At least four companies have challenged the unsolicited offer of the Manila Water Company Inc. to develop the P1.55-billion Carmen Bulk Water Supply Project.

Three of the companies are the Rio Verde Water Co.; Maynilad Water Services Co. and Promark Process International Corp., all Manila-based.

Capitol consultant Rory Jon Sepulveda said that a lawyer introduced himself to him as representing another company also interested to bid.

Sepulveda said he asked the lawyer to formalize their proposal so it will be considered by the Joint Investment Evaluation and Selection Committee of which he is chairman.

The Capitol has successfully negotiated last month the unsolicited offer with a consortium led by Manila Water Co. Inc. subject to competitive challenge in accordance with the Joint Investment Ordinance of the Province approved in 2009.

The committee is set to meet on August 25 to check if all documents of other proponents are in.

One of the qualifications is that the company must have a track record of at least five years in the bulk water business and can supply at least 35 million liters a day.

It must also have assets of not less than P800 million following the sharing scheme of 51 percent of the private partner while 49 percent for the Province of Cebu.

Sepulveda said that if other proposals fail the criteria set by JIESC, the project shall be awarded to original proponent.

The Manila Water is the lead member of a consortium which is the original proponent of the Carmen Bulk Water Supply Project.

This project aims to extract water from the Luyang-Cantumog River in Carmen town in northern Cebu for distribution in Metro Cebu through the Metro Cebu Water District.

Aside from Manila Water, the consortium is composed of Stateland, Inc. and Vicsal Development Corp.

Representatives from the Manila Water Company made the bulk water proposal to the governor last April.

Under the proposal, Manila Water will supply 35 million liters per day of potable bulk water sourced from the Luyang River to meet the growing water supply requirements of the towns of Liloan, Compostela, Consolacion, Cordova and the cities of Danao, Mandaue and Lapu-Lapu.

The project will be implemented under the framework of the Joint Investment Guidelines issued by the Provincial Board which provides for the guidelines and procedures in entering into a joint investment activity with the province.

Key features of the proposal include a no “take or pay” provision and the turnover of all the joint investment company’s assets to the province once the 25-year cooperation period has lapsed. (FREEMAN)