Aboitiz Still Keen on Iloilo Bulk Water Despite ‘Conflict’ with NIA Plans

By Rjay Zuriaga Castor

(UPDATED) Aboitiz InfraCapital Inc. (AIC) remains committed to addressing Iloilo’s water shortage, despite the National Irrigation Administration (NIA) halting progress on its bulk water supply proposal due to conflicting development plans.

In a statement to Daily Guardian on April 15, AIC said it is actively coordinating with NIA to find alignment on its unsolicited proposal for a highline canal and bulk water system in Iloilo.

“[Our] proposal to NIA aligns with the agency’s goal of maximizing benefits for irrigation and bulk water resources,” AIC stated.

“Recognizing the interconnection of both initiatives, AIC continues to engage and collaborate with each implementing agency to ensure alignment of both proposals toward attaining the ultimate goal of delivering sustainable water supply to Ilonggos,” it added.

AIC submitted a proposal to NIA, the Highline Canal and Raw Water Supply Project, designed to complement the Jalaur River Multi-Purpose Project Phase II (JRMP II).

The proposal supports AIC’s P8.45-billion Bulk Water Supply Project, which is currently under negotiation with the Iloilo City government.

Metro Pacific Iloilo Water, the water distributor for Iloilo City and nearby towns, held a stakeholder meeting on April 15 to discuss AIC’s bulk water initiative.

The JRMP II plays a key role in AIC’s broader plan to develop the Iloilo Bulk Water Supply Project, which aims to deliver more than 86.4 million liters per day (MLD) of bulk water.

This water would flow through an 80.74-kilometer highline canal linking three dams in Calinog, Iloilo, enabling more efficient regional water distribution.

AIC’s plan includes a Bulk Raw Water Intake Facility that would supply up to 80 MLD of potable water to local water districts, based on a user-pays model it views as more sustainable.

The company has also offered to help complete unfinished segments of the JRMP II highline canal after the exit of the previous contractor, Daewoo Engineering and Construction Co. Ltd.

Despite these efforts, NIA said it cannot move forward with AIC’s proposal because it conflicts with its existing development strategy and an agreement with the Asian Development Bank (ADB).

Signed in September 2024, the ADB-NIA Transaction Advisory Service (TAS) Agreement allows ADB to provide free technical support to ensure NIA’s PPP projects are competitively procured and financially viable.

The TAS agreement covers JRMP II’s irrigation and bulk water supply systems, as well as future floating solar projects.

NIA flagged AIC’s proposed “Availability Payment” structure as a key issue, noting it would require fixed payments from NIA regardless of actual water use or sales.

Instead, NIA favors a user-based revenue model, where consumers only pay for water they use, aligning more closely with projected regional demand.

The agency emphasized that its existing partnership with ADB offers a more flexible and risk-sensitive financing strategy for long-term water infrastructure.

Despite the setback, AIC said it remains open to further engagement and is hopeful that the proposal can be aligned with national plans to help secure Iloilo’s future water supply.

This story includes updates on the following points:

ORIGINAL:
AIC submitted two separate proposals to NIA: the PHP8.45-billion Bulk Raw Water Project and the construction of a highline canal, both designed to complement the Jalaur River Multi-Purpose Project Phase II (JRMP II).

The proposals also support AIC’s separate public-private partnership (PPP) with the Iloilo City government, which has already been approved by the city’s Pre-Qualifications, Bids, and Awards Committee.

UPDATED:
AIC submitted a proposal to NIA, the Highline Canal and Raw Water Supply Project, designed to complement the Jalaur River Multi-Purpose Project Phase II (JRMP II).

The proposal supports AIC’s P8.45-billion Bulk Water Supply Project, which is currently under negotiation with the Iloilo City government.*

This articulation reflects our two unsolicited proposals (not three as the article suggests) and clarifies the status of our bulk water supply proposal to the city.