MCWD signs joint venture with private water supplier

CEBU, Philippines - Metropolitan Cebu Water District (MCWD) signed a joint venture agreement with Abejo Waters Corporation (AWC) yesterday that would benefit around 4,000 households in Mandaue City.

These households will benefit from another bulk of water supply that MCWD will provide through AWC as the project will supply water to the newly-laid lines in sitio Tingub in Mandaue City.

It is expected to improve the water supply in underserved areas in barangays Cabancalan, Maguikay, Bakilid, and Casuntingan.

The contract will cover 10 years and AWC is expected to deliver the water within 12 months following the signing of contract.

MCWD general manager Engr. Armando Paredes, MCWD Board of Directors chairman Rene Mercado, AWC president and CEO Borgy Abejo Jr., and Allen Marcojos, AWC vice president for technical, signed the contract yesterday held at the board room of the MCWD main office.

MCWD is currently supplying around 5,000 cubic meters of water a day to the area and some consumers experience low pressure especially during peak hours.

“There are really times of the day that there is low pressure. With the infusion of Abejo Waters Corporation, this can solve this problem in the area,” said Paredes.

MCWD received an unsolicited joint venture proposal from AWC and after negotiations, it was agreed that AWC will supply water to MCWD at a minimum volume of 5,000 cubic meters per day at P14.78 per cubic meter.

This will be injected to the water district’s distribution line in ML Quezon Avenue in barangay Cabancalan.

With the addition, there will already be around 10,000 cubic meters per day that will be supplied to the area.

Abejo said they have allotted a P40-million budget for this contract and it will start next year.

This is MCWD’s fifth joint venture with AWC and the eighth joint venture it has entered into with private water suppliers in the past four years.

The joint ventures have allowed the water district to provide an additional 17,092 cubic meters of water a day to augment its daily in-house water production of 182,000 cubic meters to serve its 150,000 consumers.

MCWD is currently serving over 160,000 households with the 200,000 cubic meter of their total production to four cities, namely, Cebu, Mandaue, Lapu-Lapu, and Talisay and four municipalities including Liloan, Consolacion, Cordova, and Minglanilla.

MCWD officials would also like to clarify that the 43 percent of the demand coverage are referred only for those who were connected to the utility.

The rest of the percentages are supplied by private water suppliers and those with deep wells.

Paredes said that by 2020, MCWD aims for a 66 percent increase in its demand coverage by controlling the extraction of water in Metro Cebu and manage well water insecurity.  (FREEMAN)