Challengers invited to BID: Liloan gets P375 million offer for water supply system

CEBU, Philippines — Amid the worsening water problem in Metro Cebu, the Municipality of Liloan is inviting private companies to develop and establish a local water supply system amounting to P375 million.

This after the municipality, through the Public-Private Partnership (PPP) Selection Committee, has received unsolicited proposal on the development and establishment of a local water supply system for the town, making a water supply provider available to consumers 24/7, with quality in accordance with and compliant to the Philippine National Standards of Drinking Water (PNSDW), under a Joint Venture Agreement.

Under the terms and conditions, the total initial project cost is pegged at P375 million with an initial subscribed amount of P10 million for 100,000 shares, 85 percent of which is from the Private Sector Proponent and 15 percent from the municipal government.

The initial subscription of the LGU shall be advanced by the PSP and shall be repaid through the dividends to be declared by the JV company, but in no case more than 20 percent of the dividends due to the LGU for any dividend declaration, until fully paid.

The project shall be operational for 35 years subject to renewal by the parties. Scope of work should include securing all permits and approvals from governing agencies, all labor, taxes, insurances, services, and equipment necessary to produce the required water supply system.

The detailed works should include but not limited to the supply and installation of materials and equipment for the construction and or installation of deep well, pumping stations and distribution lines.

“In relation thereto, any and all interested parties are hereby invited to submit their Letter of Intent and required documents, which shall be the basis for the evaluation of qualified challengers on or before January 15, 2020 to the PPP Selection Committee Secretary at the Office of the Mayor, Liloan Municipal Hall, Liloan, Cebu,” read a published invitation signed by Mayor Christina Frasco.

Expressing its extreme dissatisfaction and frustration over the services of Metropolitan Cebu Water District, the Sangguniang Bayan of Liloan earlier passed a resolution authorizing Frasco to terminate the Memorandum of agreement it entered into in 1992.

In 1992, MCWD entered into a MOA with the Municipal Government of Liloan to extract water from a total of 17 wells.

“It is gravely unjust and disadvantageous to the Municipality and the people of Liloan that while MCWD continues to take advantage of the natural resources of Liloan and raw massive amounts of water therefrom, the water that is supplied to Liloan’s residents is grossly disproportionate, and the poor and unreliable service of MCWD to Liloan has subsisted for almost two decades, unfairly depleting Liloan’s water resources and annual share for MCWD’s profitable use of LIloan’s natural resources,” read the SB resolution authored by Councilor Aljew Frasco, the mayor’s brother-in-law.

MCWD reportedly promised uninterrupted day and night priority water supply to residents of Liloan, and to provide water systems in the mountain barangays, among other things.

Mayor Frasco said that nearly 30 years after the MOA was signed, two of their wells will never again be able to provide potable water as they have been irreparably damaged and Liloan remains uncompensated.

No water systems have reportedly been set up by MCWD in the mountains, constraining the LGU to undertake construction themselves.  FPL (FREEMAN)