MPIW defends pricing, targets 100% water coverage

Metro Pacific Iloilo Water (MPIW) reaffirmed its commitment to affordable and accessible water services in Iloilo City, as it laid out a PHP 11 billion infrastructure roadmap and addressed concerns over rising bulk water prices.

During a recent coordination meeting with Vice Mayor Lady Julie Grace “Love” Baronda and the Committee on Public Utilities, MPIW clarified that it is not hampering Aboitiz InfraCapital (AIC) as it will also benefit from the latter’s supply if it materializes.

But the water distributor warned that proposals from AIC and Flo Water offer bulk water at unsustainable rates between PHP 41 and PHP 45 per cubic meter—prices that could “double or triple tariffs for end users.”

MPIW currently sells water at PHP 18 per cubic meter and operates at a PHP 300 million annual loss due to rising bulk water supply costs.

“Our job is to protect affordability,” MPIW COO Angelo David Berba said. “Proposals at PHP 41 to PHP 45 are non-starters because 90% of our consumers are mid- to low-income and cannot absorb this level of cost.”

According to MPIW, Flo Water and other bulk water suppliers should be in competition, but added that competitive pricing must benefit end-users, not burden them.

Figures from the National Irrigation Administration (NIA) confirmed that Iloilo City’s endorsement of AIC’s unsolicited bulk water proposal could more than double consumer rates, potentially quadrupling household bills from PHP 200 to PHP 800 per month.

Despite NIA’s formal rejection of AIC’s plan to tap the Jalaur megadam in Calinog in March 2025 – citing legal and policy violations – the Iloilo City government awarded the firm Original Proponent Status and pushed it forward to a Swiss Challenge.

NIA, backed by the Asian Development Bank (ADB), argued that the AIC proposal directly conflicts with its advisory agreement with ADB for the Jalaur River Multi-Purpose Project Stage II (JRMP II), the preferred government-backed source for affordable water supply.

Under AIC’s Build-Own-Operate/Build-Lease model, local governments could face availability payments of up to PHP 27 billion over 33 years, even if water demand underperforms projections.

NIA also said AIC’s unsolicited bid violates the Public-Private Partnership (PPP) Code, which prohibits such proposals when a comparable publicly initiated project is already underway.

The MIWD–NIA–ADB model, in development since 2017, aims to deliver up to 86 million liters per day from JRMP II at a significantly lower cost without imposing contingent liabilities on local governments.

In July, MIWD and NIA signed a memorandum in preparation for the full 86 MLD allocation from JRMP II, reinforcing their commitment to long-term, low-cost water security.

The company plans to serve 98,000 customers by 2029 – up from 30,870 today in Iloilo City  – through major projects including a 65 MLD desalination plant and the Jalaur River surface water project, a government-to-government initiative expected to deliver 86 MLD.

As of mid-2025, service coverage in Iloilo City stands at 31%, with expansion plans targeting 50% by 2027 and 90 to 100% by 2029 throughout its service areas, depending on national government support and demand growth.

Aboitiz’s proposed PHP 41-per-cubic-meter rate, when adjusted for VAT, climbs to PHP 45 to PHP 46 – far above the PHP 25 per cubic meter projected by MPIW if the Jalaur source becomes operational by 2029.

MPIW warned that approving expensive bulk water deals would spike monthly household bills from PHP 200 to as much as PHP 800, disproportionately affecting low-income residents.

The company is investing PHP 11 billion in capital expenditure, which includes PHP 5.5 billion for desalination and PHP 400 million for modular treatment facilities

To support this growth, MPIW is replacing aging pipelines – some as small as 100 mm in diameter – with 1-meter-wide pipes to improve pressure, efficiency, and safety.

By 2027, all pipelines in Iloilo City proper will be rehabilitated, ensuring consistent 10 PSI water pressure capable of reaching second-floor homes.

Non-revenue water (NRW) – lost through leaks or theft – has dropped from 54% pre-joint venture to 43% today, with a target of 25% by 2029.

MPIW emphasized that improved water quality is also central to its efforts, maintaining a target chlorine level of 0.3 ppm and warning against contamination risks from unregulated water refilling stations.

Desalinated water, though expensive to produce, will continue even after Jalaur is operational due to projected demand exceeding the 86 MLD capacity.

MPIW assured consumers that cross-subsidization from commercial to residential accounts would keep household rates stable.

“The goal is a single tariff rate across all areas,” Berba said, “so that higher costs in the city can be balanced by lower costs in upland towns like Leganes and Pavia.”

GIS pipeline data from MPIW is available for integration with other utilities, but much of the city’s old water lines – dating back to the 1970s – were installed without documentation.

City councilors including Johnny Yang and Sedrey Cabaluna expressed full support, committing to expedite permits and hearings to help MPIW meet its service and infrastructure targets.