BIZ BUZZ: War over Iloilo City water heats up
Iloilo City has found itself in the middle of a battle over its water service, with two conglomerates—Manuel V. Pangilinan-led Metro Pacific Group and the Aboitiz Group—on opposing sides.
Currently, water is being distributed in the progressive city by Metro Pacific Iloilo Water, a joint venture between Metro Pacific Water—a wholly owned subsidiary of infrastructure holding firm Metro Pacific Investments Corp.—and Metro Iloilo Water District (MIWD).
But if social media comments are to be believed, the majority of the residents still lack reliable water supply even after six years under the distributor, thus forcing some barangays to rely on deep wells or expensive trucked water.
In a bid to raise the level of service, the Iloilo City government has formally asked the National Irrigation Administration and National Water Resources Board for water rights to the Jalaur River Multi-Purpose Project II to secure guaranteed water supply for the city.
It has also pursued the Iloilo Bulk Water Supply Project under a public-private partnership, with Aboitiz InfraCapital (AIC) of the Aboitiz Group granted an original proponent status.
That transaction has moved on to the Swiss Challenge stage, which means that AIC can match any other offer for the same project.
This promptly raised some eyebrows.
Biz Buzz sources claimed that NIA had already rejected AIC’s unsolicited proposal, partly because it supposedly overlapped with an existing government-to-government arrangement between NIA and MIWD.
This makes the Aboitiz proposal potentially at odds with some sections of the Public-Private Partnership Code’s rules, which prohibit unsolicited proposals when a comparable government-supported project is underway.
There are also questions about whose proposal will really be able to provide Iloilo City with the best service at the least cost, with both groups predictably pitching their competence and commitment to the city.
The question now is who will ultimately bag the bulk water supply deal that could shape the city’s water security and pricing for the next 30 years.
Will it be the Iloilo City government or Metro Iloilo Water District?
Abangan!
