MANILA, Philippines - The Cebu provincial government on Wednesday signed a joint investment agreement with the Manila Water Consortium for the development and operation of a the bulk water supply system in the city.
In a disclosure to the stock exchange, Manila Water said the company will jointly develop and operate a bulk water supply system that will supply 35 million liters of water a day in target areas in Cebu. The joint investment agreement is for a period of 30 years and renewable for another 25 years.
"This joint investment agreement with the Cebuanos is a testament of a true public private sector partnership. We take pride in being part of a solution to Cebu's growing water demand through a sustainable surface water source project and to be able to bring our quality of service to the province," Manila Water chairman Fernando Zobel de Ayala asid, in a statement.
Cebu Governor Gwendolyn F. Garcia said the main "winners" in the partnership are the Cebuanos, who will finally have sustainable bulk water.
The joint investment agreement provides for an equity share of 51:49 between Manila Water Consortium and the province of Cebu. A joint investment company between the two parties will be established.
The Cebu Bulk Water Supply Project will involve sourcing water from the Luyang River in Carmen, and providing the water requirements in the northern and central portions of Cebu. At present, only less than 50% of the market in northern and central Cebu are being served.
The operation of the project is expected by the third quarter of 2013. "The builk water supply project is also expected to improve the current groundwater condition in the province which has deteriorated due to the excessive use of deepwells," the company said.