THE Tagum City Water District (TCWD) is tapping the consortium of Manila Water Co. Inc. (MWCI) and iWater Inc. to supply bulk water in the capital city of Davao del Norte.
This was confirmed in a letter dated July 28, 2015 received by the East Zone water concessionaire, saying the group has been awarded the project.
“In accordance with the terms of the joint-venture agreement, the TCWD and the consortium of Manila Water and iWater will form a joint-venture company [JVC], which will undertake the performance of all obligations under the joint-venture agreement and the bulk-water supply purchase agreement,” MWCI said in its disclosure.
The former will contribute 10 percent, while the latter will account for 90 percent of the equity requirement.
To develop a raw surface-water source, the Tagum City bulk-water supply project will involve the construction of a hydro-treatment plant and a treated-water reservoir that can produce 38,000 and 5,000 cubic meters per day, respectively.
Also, it will have a treated water-transmission pipeline, booster pumps, standby generator sets and bulk-water metering systems at off-take point.
Once finished, the facilities can supply the TCWD with 26 million liters, 32 million liters and 38 million liters of treated water daily on the first to third year of operation, fourth to sixth year, and seventh to 15th year delivery period.
Early this year, MWCI executed a JV pact with Zamboanga City Water District (ZCWD), with the end goal of cutting its systems loss in the form of water leaks in the province, also located in Mindanao.
The JVC they formed is implementing the 10-year project. It will be incorporated by both parties thereafter.
As per their agreement, MWCI will own 70 percent of the JVC’s outstanding capital stock, while ZCWD shall own the remaining 30 percent.
For the first quarter of 2015, the Ayala-led utility company reported a 5-percent increase in consolidated revenues to P4.026 billion from P3.827 billion during the same period in 2014, as net income remained flat at P1.4 billion year-on-year.
The improved performance could be attributed to expanded water-service connections and bills volume within its concession areas in Metro Manila and other parts of the country, as well as overseas.