Carmen bulk water project operational by next year

CEBU, Philippines - The Carmen bulk water supply project can already produce water for the Metropolitan Cebu Water District by June next year.

Cebu Governor Hilario Davide III said he got this information during a briefing from officials of Manila Water led by its chairman, Fernando Zobel de Ayala.

The joint venture of Manila Water Co. Inc. and the provincial government of Cebu were awarded the contract to supply water to MCWD in Cebu City. Manila Water said its tie-up, Cebu Manila Water Development Inc., received the notice of award for the bulk supply of water from MCWD.

“In relation to this, CMWD and MCWD shall sign a 20-year water purchase agreement,” said Manila Water in a statement.

Under the deal, CMWD will supply 18 million liters per day of water for the first year and 35 million liters per day for the succeeding years at undisclosed rates.

“Initial delivery of water is expected six months from the signing of the [agreement],” the Ayala-led water distributor said.

Manila Water earlier partnered with the provincial government of Cebu to develop water supply from the Luyang River in the municipality of Carmen through CMWD.

The project is the first long-term bulk water project initiated in Cebu. It aims to address the deteriorating groundwater condition in the province.

 Sometime in 2012, former governor and now Rep. Gwendolyn Garcia, entered into a Joint Investment Agreement with Manila Water.

Ayala earlier said that joint investment agreement with the Cebuanos is the testament to a true public private sector partnership.

He said they take pride in being part of the solution to Cebu’s growing water demand through a sustainable surface water source projects, and to be able to bring our quality of service to the province.

The joint investment agreement provides for an equity share of 51:49 between Manila Water Consortium and the Province of Cebu.  (FREEMAN)