Iloilo City Council Eyes Aboitiz Water Deal Approval

By Rjay Zuriaga Castor

The Iloilo City Council aims to approve Aboitiz InfraCapital’s (AIC) proposed bulk water supply project before the transition to a new local administration.

City Councilor Romel Duron, chair of the committee on energy and public utilities, said the proposal is still subject to a Swiss challenge and will move forward once the committee report is finalized.

“The mayor has been endorsing it, and our primary objective is a 24/7 supply of potable water,” Duron said during a committee hearing on Monday.

He noted that another hearing may be held to further review the proposal, which includes building a water treatment facility and an 8-kilometer pipeline to deliver 86 million liters of potable water per day.

Duron said Iloilo City urgently needs a more reliable and expanded water supply due to rapid development, population growth and existing shortages.

He emphasized that current water availability is insufficient, forcing many to depend on costly and inefficient water tanker deliveries.

“The more supply, the better for the city,” he said.

“That’s why, as much as possible, we accept all offers.”

The city government granted AIC original proponent status (OPS) on May 15, allowing the company to match any superior proposal during the Swiss challenge process.

Metro Pacific Iloilo Water (MPIW), the city’s main water distributor, warned that having AIC as an additional supplier could result in higher water rates.

Duron responded that MPIW may challenge AIC’s proposal by submitting a more competitive offer.

“If there is somebody who wants to challenge, then offer a better or lower price,” he said.

If no challengers emerge or AIC successfully matches a superior bid, the project will be awarded to AIC.

Duron stressed the city’s goal of having multiple bulk water providers to ensure supply redundancy and minimize the risk of shortages.

Atty. David Abraham Garcia, head of the Iloilo City Public-Private Partnership Office, echoed the urgency of expanding water supply sources.

“There is a lack of supply if we compare it to the extreme demand,” Garcia said, adding that multiple sources are critical to ensuring long-term water security.