Manila Water ends supply deal with Pangasinan

CONTRACT DROPPED | The aborted bulk water supply deal between the Pangasinan provincial government, and Manila Water Co. Inc. and its subsidiary would have benefited households and
businesses in 14 towns and cities in the province. (Photo by WILLIE LOMIBAO / Inquirer Northern Luzon)

MANILA, Philippines — Manila Water Co. Inc. and its subsidiary have terminated their concession agreement with the provincial government of Pangasinan, citing the latter’s “nonfulfillment of conditions.”

In a stock exchange filing on Wednesday, the Razon-led Manila Water said the 25-year concession deal it and Manila Water Philippine Ventures Inc. (MWPV) had undertaken with Pangasinan was deemed terminated on Dec. 31.

The concessionaire did not cite the conditions that the provincial government had failed to meet. Manila Water has not responded to requests for comment on Wednesday.

The three parties signed the agreement for a bulk water supply project in January 2022.

Under the canceled contract, the project had an estimated capital expenditure program of P8 billion that would create an infrastructure to source water from Agno River using the riverbank filtration technology.

The project was also estimated to deliver a billed volume of 200 million liters per day to 1.4 millison Pangasinan residents by the 25th year.

READ: Manila Water’s P2.5-B Hinulugang Taktak STP nearing completion

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Unsolicited proposal

Fourteen cities and municipalities would have benefited from the deal. These are the cities of Urdaneta, San Carlos and Dagupan, and the towns of Villasis, Malasiqui, Mangaldan, Sta. Barbara, Calasiao, Mapandan, Manaoag, Binmaley, Lingayen, San Jacinto and San Fabian.

Manila Water said efforts to push for the water project began in September 2016 when the consortium submitted an unsolicited proposal to Pangasinan.

It was followed by the initial evaluation of the Pangasinan Public-Private Partnership Selection Committee before the Notice of Acceptance was issued in November 2018.

By July 2019, negotiations were made and Joint Certifications of Successful Negotiations were signed in the same year.

The provincial government eventually presented the notice of award for the development, financing, construction, operation, and maintenance of the bulk water project to Manila Water.

The Inquirer tried to reach Pangasinan Gov. Ramon Guico III for comment but he did not respond to calls or text messages at press time Wednesday. Dhobie de Guzman, head of the public information office of the provincial government said the provincial legal office would issue a statement soon.

The MWPV leads bulk water supply projects for Metro Ilagan Water Co. Inc. in the City of Ilagan in Isabela province, and Davao del Norte Water Infrastructure Co. Inc. (Davao Water) in Tagum City.

On Dec. 1 last year, Manila Water also terminated its bulk water supply contract with Metropolitan Cebu Water District (MCWD). It did not provide details of the contract termination.

Cebu Gov. Gwendolyn Garcia had said that the provincial government instead entered into a two-month direct agreement with the MCWD to prevent supply shortage.