Aboitiz set to start Davao bulk water project in July

MANILA, Philippines - Davao City expects a sizable potable water supply within three years as Apo Agua Infrastructura Inc. targets to start its bulk water project in the second half of 2017.

Apo Agua–the joint venture of Aboitiz Equity Ventures Inc. (AEV) and J.V. Angeles Construction Corp.–is looking to start construction of the country’s largest private bulk water supply by July, AEV chief finance officer Manuel Lozano said in a briefing late Monday.

He said the company is currently ironing out requirements before commencing full-swing construction.

“One that takes time is permitting, getting the counter-party, we needed to work with DCWD… Our goal is to begin construction by July, so that’s the target,” Lozano said.

The project cost is seen at around P12 billion, which is still subject to changes. 

“Right now, we’re still making some changes, but its going to be around P12 billion in total capex. Funding is already ready. It’s just really finalizing permits, we want to make sure everything is set before building it,” Lozano said.

The company secured a bulk water supply agreement with the Davao City Water District (DCWD) in 2015.

Under the deal, Apo Agua will supply 300-350 million liters per day (MLD) of potable bulk water from the Tamugan River to DCWD.

Lozano said the project would require around 30-50 kilometers of pipes from the source to the bulk water facility.

“It’s far, that’s why it takes time. You need to get the right-of-way clearance, permits, land conversion. It’s not that hard to build, but [we need to have] coordination with DPWH (Department of Public Works and Highways] until it gets to the water treatment plant,” he said.