THE Metropolitan Waterworks and Sewerage System (MWSS), one of the oldest waterworks sewerage services in Asia, has advanced over the past couple of decades and it is leading the way in the successful stewardship of public-private partnership (PPP) in the Asia Pacific.
Reynaldo V. Velasco, the new MWSS administrator, cited the Bulacan Bulk Water Supply Project (BBWSP), awarded to San Miguel Corp. in 2016, of having been shortlisted for the 2017 Global Water Awards for Water Deal of the Year.
The award is given to projects that have made the biggest contribution for the improvement of the international water sector. It will be handed out at the Palacio de Cibeles in Madrid, Spain, on April 24, as part of the Global Water Summit, a global business conference for the water industry.
In addition to BBWSS, other shortlisted projects are the Aqaba Desalination Plant Financing in Jordan, Barka 4 IWP Financing in Oman, and the Vista Ridge Pipeline Financing in the US.
The prestigious annual awards was established in 2006 by the Global Water Intelligence and recognizes the most important achievements in the international water industry in the water, wastewater and desalination sectors propelling the industry toward improved operating performance, innovative technology adoption and sustainable financial models.
The P16.32-billion project services 21 municipalities and three cities in Bulacan. BBWSS is a joint venture of San Miguel Holdings at 80 percent and Korea’s K-water at 20 percent, with two stages completed and another stage in the offing. The BBWSP was among the banner projects undertaken by Velasco’s predecessor Gerardo AI Esquivel.
Velasco recalled that on June 19, 1971, through Republic Act (RA) 6234, MWSS was created to ensure the uninterrupted supply and distribution of potable water. In 1997 then-President Fidel V. Ramos passed into law RA 8041, also known as “The Water Crisis Act,” which led for the privatization of MWSS.
Ramos also called for the reorganization of the MWSS to encourage private-sector participation in the privatization of the MWSS facilities and operations to address issues connected with the supply distribution, strengthening the government anti-water pilferage efforts and the finance privatization.
In August 1997 the Ramos administration entered into a 25-year concession agreement with two private consortia comprised of international and local partners. This efficiently shifted the operational responsibilities of MWSS to Maynilad Water Services Inc. for the West Zone and Manila Water Co. Inc. for the East Zone.
“The public-private partnership, or more popularly known as the MWSS privatization, has proven well for our country and for our people over the last 20 years,” Velasco said. “This promotes common beneficial and water advocacies anchored on what is right, fair, just and reasonable for all affected constituents. Definitely, we will continue to serve the interest of the public, as well as our concessionaires.”
In December 2006 the 84-percent stake in Maynilad by MWSS was awarded to an all-Filipino partnership with a construction company DM Consunji Holdings Inc. and a telecommunications and real-estate company Metro Pacific Investments Corp. for $503.9 million.
Velasco vowed to pursue flagship projects such as the Kaliwa, Laiban at Kanan dam projects that would ensure sustainable water supply for Metro Manila and its adjoining provinces in the next 25 years to 50 years.
He also encouraged concessionaires to look for other sources of water and cited the overall efforts of MWWS in ensuring “a sustainable water supply for the next generation.”