The Cebu Bulk Water Consortium lost to Manila Water Consortium in its bid to develop the Luyang River in Carmen town, northern Cebu.
The Cebu provincial government announced yesterday that it will award the bulk water system project to Manila Water Consortium.
Cebu Gov. Gwendolyn Garcia, Capitol spokesperson Rory Jon Sepulveda and N. Jeric Sevilla, Corporate Communications head of Manila Water, held a press conference yesterday.
Garcia said Manila Water challenged the top bidder, Cebu Bulk Water Consortium, at the same tariff of P13.95 and with an income return rate of 19.26 percent.
The governor said the Cebuanos benefited the most because it will have cheaper water costs.
Manila Water Consortium, which includes Vicsal Development Corp. and Stateland Inc., will start commissioning in the last quarter of 2013.
Garcia said she will ask authority from the Provincial Board (PB) to enter into an agreement with Manila Water, which will develop, operate and maintain the bulk water system in the province of Cebu.
Capitol and the consortium will negotiate and execute a joint investment agreement with 49 percent and 51 percent equity participation, respectively.
The project aims to supply 35 million liters of potable water per day from the Luyang River in Carmen.
It will partly answer the water demands of the northern and central parts of the province.
The bulk water supply project is also expected to improve the current groundwater condition of the province, which has deteriorated due to overextraction.
According to Manila Water, the project, which is expected to cost P700 million, does not comprise more than 10 percent of the company’s total assets.
Last month, three bidders—Cebu Bulk Water Consortium, Metro-Maynilad Consortium and Manila Water Co.—joined in the submission and opening of the technical and financial proposals for the project.
Cebu Bulk Water emerged the top bidder and Manila Water, being the original proponent of the project, was given until Jan. 15 to match Cebu Bulk Water’s bid. Correspondent Carmel Loise Matus