Cagayan town taps partner for P210 million water supply project

MANILA, Philippines — The local government of the municipality of Baggao in Cagayan has inked a joint venture agreement with its private sector partner M.E. Sicat Construction Inc. for a P210-million water supply public-private partnership (PPP) project.

The PPP Center said the ceremonial contract signing for the Baggao water supply project was held early this week after it was awarded to M.E. Sicat Construction.

M.E. Sicat Construction is involved in the construction of buildings, flood control, bridges and dredging, as well as other infrastructure projects including trenchless or micro-tunneling, sewer treatment facilities, desalination plants, water distribution systems, and drainage systems.

The water supply project is the first PPP of the first-class municipality and the first PPP Center-supported project awarded under the current administration.

It will involve the design, finance, construction, operation and maintenance of a Level III water supply service for 24 of the town’s barangays.

A Level III water system refers to a water supply facility with a source, a reservoir, a piped distribution network with adequate treatment facility and individual households taps.

Slated to begin next year, the water supply project will have a 25-year term.

PPP Center executive director Ma. Cynthia Hernandez said the project shows the strong interest of the local government unit (LGU) for PPP arrangements as well as indicates their level of capability to implement such infrastructure projects.

The PPP Center said the Baggao water supply project would serve as a model of PPP implementation for other LGUs in the country.

The PPP Center provided support for the water supply project through technical assistance in updating the business case study, guidance during the project approval stage and coordination with the LGU’s joint venture selection committee for the procurement.

“The provision of clean and safe water is a fundamental right and an essential component of public health, sanitation, and economic growth. Without adequate water access, businesses cannot thrive, communities cannot flourish, and the well-being of our residents cannot be fully realized,” Baggao Mayor Leonardo Pattung said.

Under its mandate, the PPP Center supports local and national agencies in the development and implementation of critical infrastructure and development projects through the PPP mode.