MANILA, Philippines – Ayala-owned Manila Water Co. Inc. signed yesterday a joint venture agreement with the Philippine Tourism Authority (PTA) to develop and operate the existing Boracay water supply and sewerage system in Malay, Aklan.
Fernando Zobel, Ayala Corp. president and chairman of Manila Water, signed in behalf of the utility firm, while Tourism Secretary Joseph “Ace” Durano signed in behalf of the PTA.
Manila Water group director Virgilio Rivera Jr., said the project is estimated to cost P1.2 billion, with Manila Water contributing P1 billion to be spent on rehabilitating, improving, developing and expanding the current water supply and sewerage system on the island.
Rivera said a joint venture company to be called tentatively as Boracay Island Water Corp. will be created, with Manila Water, owning 80 percent and the PTA 20 percent.
The new company will enter into a 25-year concession agreement with PTA, renewable for another 25 years to service the waterworks and sewerage needs and requirements of the entire Boracay Island.
Rivera said the terms of the concession agreement will be patterned after the concession agreement of Manila Water with the Metropolitan Waterworks and Sewerage System for the East Zone.
He gave his assurance that the existing tariff rate in Boracay would be maintained subject to the periodic review under the concession agreement.
Durano said the turnover of the operation of the water and sewerage system of Boracay to Manila Water would free up the P40 million annual subsidy that the PTA spends for the island.
Such funds, Durano said, would now be spent by the PTA to develop other potential tourist areas.
Durano hopes that such partnership would be replicated in the future in Bohol and Palawan.
Commencement of Manila Water’s takeover of the Boracay water and sewerage system, Rivera said, will be in June this year.
Durano and Rivera both expressed confidence that with the improvement of its water and sewerage system, Boracay growth and development, as a tourist destination would continue to grow.
This early, Durano is projecting a 10 percent increase in Boracay tourist arrivals. Last year, tourist arrivals in the island reached 700,000.