Aboitiz Group eyes water business

MANILA, Philippines - After establishing itself in the country’s power sector, the Aboitiz group is now eyeing the water business, its top official said.

Erramon Aboitiz, Aboitiz Equity Ventures Inc. (AEV) president and chief executive officer, said the conglomerate plans to strengthen its foothold in the local water sector after recently making its initial entry into bulk water distribution.

 “Water projects interest us very much, so we would definitely look into water projects,” Aboitiz said.

AEV together with joint venture partner J.V. Angeles Construction Corp. (JVACC) bagged in June a bulk water supply project in Davao City.

The project is AEV’s maiden venture into bulk water distribution.

Aboitiz said the group is keen in participating on other water projects as well, including the upcoming P18.78 billion New Centennial Water Source-Kaliwa Dam project.

The winning bidder for the New Centennial Water Source-Kaliwa Dam project would construct the 600 million-liters-per-day (MLD) dam, a 2,400 MLD water conveyance tunnel, access roads, bridges and drainage to be used in the building of the dam.

The Kaliwa dam is expected to be completed by 2020 and would serve as a secondary water source for Metro Manila once developed. At present, Metro Manila sources 97 percent of its water requirements from the Angat reservoir in Bulacan.

Aside from the New Centennial Water Source project, the Metropolitan Waterworks and Sewerage System (MWSS) is set to auction this year the P24.4 billion Bulacan Bulk Water Supply project under the PPP scheme.

AEV has already bought the bid documents for the water supply project and is currently evaluating if it will participate in the actual auction.

Aboitiz said AEV is likely to form a new subsidiary to handle its water operations, if ever it secures the Bulacan Bulk Water Supply project.

In the meantime, Aboitiz said the group would focus on the water project which they have already secured.

AEV first vice president for business development Roman V. Azanza III said the conglomerate and its partner JVACC is likely to spend P10- to P11-billion for the Davao Bulk Water Supply project.

“We have complied with the notice of award, and right now, we are in continuous discussion with the Davao City Water District (DCWD). It’s in heavy preparation mode right now,” Azanza said.

Azanza said the project would undergo “heavy planning and engineering for most of next year” and would likely commence construction in the latter part of next year.

The project, which would include construction of a water treatment facility and conveyance system needed to deliver treated bulk water to numerous points covered by DCWD, is expected to be completed in the next two to three years, Azanza said.

Aboitiz Power Corp., the power unit of AEV, is one of the biggest power players in the country with a portfolio of about 2,300 megawatts from a combination of renewable and fossil-based energy.