High Water Tariff Forces Failure of NegOcc Bulk Water Bidding

By Dolly Yasa

BACOLOD CITY — Negros Occidental Gov. Eugenio Jose Lacson said the provincial government has declared the PHP1.2 billion bulk water project bidding a failure due to unresolved issues on high water tariffs.

“Right now it is considered a failure of bidding,” Lacson told reporters in a press briefing Monday.

He said the province’s Bids and Awards Committee already issued a resolution declaring the failure of bidding.

“We already served that resolution to the lone bidder on May 16, 2025,” Lacson said.

He added that the provincial government is exploring ways to resolve the water tariff issue.

“When we find the solution, then we will call for a rebidding, because others may want to join knowing that the problem with the tariff can be addressed,” he said.

When asked if the project could push through this year, Lacson said, “Hopefully it can push through before the year ends. We are fast-tracking it.”

The lone bidder for the Capitol’s bulk water project was a consortium composed of First Balfour Inc. of the Lopez Group of Companies, Victorias Milling Co. and FPIP Utilities Inc.

Earlier, Lacson said the main issue in the bidding was the proposed water cost of PHP24 per cubic meter.

He said intended water service providers were not amenable to the rate.

Lacson said the provincial government wants to lower the tariff to PHP14 per cubic meter, but the bidder did not agree.

He added that the province is willing to increase its equity beyond the initially proposed PHP200 million, provided the tariff is reduced.

The bulk water project aims to supply six water service providers in the cities of Silay, Talisay, Victorias and Bacolod, and the municipalities of E.B. Magalona and Manapla.

Under the plan, the winning bidder will enter into a joint venture with the provincial government to finance, design, construct, operate and maintain a bulk water supply system with a minimum capacity of 34.5 million liters per day from the Malogo and Imbang rivers.