Mla Water-led consortium bags Tagum bulk water supply deal

The consortium of Ayala-led Manila Water Co. Inc. and iWater Inc. has been awarded the contract for the Tagum City bulk water supply project.

In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said it received a notice of award from the Tagum City Water District.

“In accordance with the terms of the joint venture agreement, the TCWD and the consortium of Manila Water and iWater would form a joint venture company (JVC) that would undertake the performance of all obligations under the joint venture agreement and the bulk water supply purchase agreement,” Manila Water said in the disclosure.

The project involves the construction of a water treatment plant that has a capacity of 38,000 cubic meters per day, a treated water transmission pipeline, a treated water reservoir that has a 5,000 cubic meter capacity, booster pumps, standby generator sets, and bulk water metering systems at off-take point.

The facilities, once completed, should be able to supply the water district with 26 million liters of treated water per day on the first to third year of operation, 32 MLD on the fourth to sixth year and 38 MLD for the remaining years of the 15-year delivery period.

Bidding for the project was opened in December 2014 and concluded this month.

The private sector partners would contribute 90 percent of the equity requirement for the JVC while the TCWD would contribute the remaining 10 percent equity requirement.

Tagum is the capital city of the province of Davao del Norte.