Iloilo’s Bulk Water Deal Needs Careful Scrutiny

The offer of Aboitiz InfraCapital Inc. for the Iloilo Bulk Water Supply Project demands a meticulous evaluation from both Iloilo City and the province.

Despite their differences in approach, Mayor Jerry Treñas of Iloilo City and the provincial government, led by Gov. Arthur Defensor, share a common responsibility: ensuring that any agreement forged protects public welfare.

Treñas’ concerns about the complexity of Aboitiz’s Build-Own-Operate (BOO) and Build-Lease (BL) proposal for the ₱8.45 billion project should not be dismissed lightly. The unfamiliar scheme requires the city and provincial governments to sell treated water to distributors, a shift from the usual direct-supply model Iloilo City has employed.

The mayor rightly pointed out that this structure could lead to higher water rates, as consumers may end up shouldering two additional layers of costs — one for the government’s role in water resale and the other for the distributor’s services. This echoes a familiar concern in any large-scale public-private partnership (PPP): Who truly benefits from such arrangements, and at what cost?

On the provincial side, the quiet and confidential stance taken by Atty. Dennis Ventilacion, representing the legal arm of the provincial government, signals a cautious approach. The province’s delay in meeting the PPP Code’s deadlines for processing the proposal, though legally allowed, should still be seen as a cause for concern. Transparency and timeliness are critical when public resources and essential services, such as water, are on the line.

Due diligence is imperative. Water is a vital resource, and in a growing urban center like Iloilo City, future demand is certain to increase. Aboitiz InfraCapital’s proposal has the potential to address this need, offering 80 million liters of potable water per day over 33 years.

However, it is equally important to secure the most beneficial terms, ensuring affordability and sustainability for Iloilo’s residents. As both the city and provincial governments deliberate on this proposal, they must focus on safeguarding public welfare, not just on the immediate benefits or financial arrangements.

The complexity of the deal is no excuse for rushed decisions. While the need for a more stable water supply is urgent, decisions must not be made at the expense of consumers. Treñas’ openness to reconsideration of the proposal is commendable, but both city hall and the capitol should dig deep into Aboitiz’s offer, probing not only its financial aspects but also its long-term social impact.

In the end, this project is about the people of Iloilo. Both city and provincial leaders must aim to secure a deal that ensures a sustainable, affordable water supply without placing undue burden on consumers. Thorough scrutiny and negotiation with Aboitiz InfraCapital are crucial to strike a balance between securing future water needs and protecting public welfare.