Vicsal Development Corporation is the owner of the Metro Gaisano chain of department stores and supermarkets, this latest water project is the company's first large venture into utility infrastructure sector.
"We are very keen about investing in this water project and to take part in alleviating Metro Cebu's water problems," said Vicsal's vice president for marketing Margaret Gaisano-Ang during the signing of Memorandum of Agreement (MOA) to formalize the Gaisano's participation on the water project.
Currently, there are at least four investors of the Northern Water Works and Rivers of Cebu Corporation, this include; the Ayala-owned Manila Water Company, Stateland Inc., Vicsal Development Corporation, and an International company that will soon join the group, said Manila Water's chief finance office Sherisa P. Nuesa.
According to Gaisano-Ang the two members of the consortium have been a long-time business partners with the Vicsal Development Company, as Stateland Inc. was one of the largest financiers when the Metro Gaisano was established.
Also, Metro Gaisano and Ayala Group, especially with the Ayala Malls, had been partners for years now, as Metro Gaisano is the anchor store of the Ayala Center Cebu, in Ayala's shopping mall Market!Market! in Taguig City in Metro Manila.
"Our company decided to invest in the consortium because Ayala Corporation has conducted a thorough study of the project. Ayala Corporation also has good track record in professional management, which has led to an increased shareholder value of their companies. Besides, Ayala Corporation has invested billions of pesos in Cebu over the years which manifests its trust and confidence in Cebu," Gaisano-Ang said.
She said the amount of investment from the Vicsal company side will still be determined, as another international company will soon join the consortium, but Nuesa said with the entry of Gaisano's Vicsal Development Corporation, the company is now the second largest investor of the consortium next to the Ayala-owned Manila Water Company.
The consortium has proposed to develop the Carmen Bulk Water Supply project by tapping water from Luyang River in Carmen town, about 40 kilometers north of Cebu City, under a Build-Operate-Transfer (BOT) scheme.
The project, Nuesa said will be the province's first major surface water source and will supply up to 40 million liters per day (MLD) through a pipeline from Carmen town to Metro Cebu.
The project however, is still subject for swiss challenge before the end of this year, which has already gained the interest of other possible challengers.
Gaisano's Vicsal Development Corporation is the most aggressive company owned by the Gaisano clan in Cebu, from its wide retail experience, it has diversified its business to real estate development, banking, travel and tours, among others.
Although the proposed project still subject for approval from the National Economic and Development Authority (NEDA), Nuesa is confident that it can withstand further scrutiny from the government, as the project had been into several reviews already.