Baciwa GM confirms bulk water project with capitol

By Dolly Yasa

BACOLOD City – Bacolod City Water District (Baciwa) general manager Mona Dia Jardin confirmed that she submitted a Letter of Intent to express interest in joining the P1.2-billion bulk water supply project of the provincial government of Negros Occidental.

Jardin also confirmed to Daily Guardian Thursday that Baciwa will join the project.

She acknowledged that “the successful implementation of the project may be advantageous to the province of Negros Occidental and the local water authorities.”

In a letter to Gov. Eugenio Jose Lacson dated July 4, Jardin said the water district intends to avail of 10 MLD (million liters per day) for the duration of the project, subject to the conduct of due diligence and the execution of a definitive agreement.

“That’s already a good amount that we are expecting from Bacolod City,” Lacson said, as he welcomed the development in the Capitol bulk water project.

Aside from BACIWA, water districts in the cities of Talisay, Silay, EB Magalona, and Victorias also expressed intent to avail of the water project.

“We are now in a better position to present it to the investors,” Lacson said.

Five potential investors, including Aboitiz InfraCapital Inc., Manila Water Company Inc., San Miguel Corp., Suez Water Technologies, and Genesis Water Technologies Philippines, have expressed their intent to invest in the Capitol bulk water project.

An investor forum is set on August 10 this year.

The bulk water project of the provincial government of Negros Occidental will tap the surface water of Imbang and Malogo rivers in the 3rd district of Negros Occidental.

Ever since, it is more beneficial to the investors if Bacolod City is included in the project, Lacson said.

“The consolidated volume purchase of treated bulk water is expected to result in lower Bulk Water Charge (BWC) based on economies of scale, set, extracted, and adjusted via public bidding, under the BOT (Build-Operate-Transfer) Law,” Jardin added.

Jardin also said that the construction, operation, and eventual transfer of large-capacity water treatment and conveyance systems are expected to provide a more stable and sustainable supply of treated bulk water over the long term as well as allow scarce groundwater resources to replenish.

“Acknowledging the urgent need for water supply as of the date of this letter, the correlated availability of water for the residents of the Province of Negros Occidental is dependent on the placement of firm commitments to source large volumes of bulk water on a long-term basis, and a corresponding long term commitment to build and operate a large capacity water infrastructure facility, Jardin said she will do her best effort to propose to Baciwa to source its water requirements on a long-term basis via the project, as will be set out and entered in a Memorandum of Agreement.”

 

It must be emphasized, according to Jardin, that the Letter of Intent “does not and is not intended to contractually bind the Baciwa and is only an expression of interest, subject to the conduct of due diligence and execution of a definitive agreement.”

Baciwa shall not be contractually bound unless and until it enters into a formal, written Memorandum of Agreement or some other definitive agreement, which must be in form and content satisfactory to the parties.”

She further stressed that the Provincial Government of Bacolod City, and/or the Private Concessionaire shall not rely on this letter as creating any legal obligation of any kind on the part of Baciwa.