MPIW says water prices may rise with Aboitiz deal

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By Rjay Zuriaga Castor 

Metro Pacific Iloilo Water (MPIW) said Monday, Dec. 15, that it would be impossible to prevent water price increases once Aboitiz InfraCapital’s (AIC) bulk water supply project begins operations – even if MPIW becomes one of its off-takers.

“It is impossible that the cost of water will not increase because we cannot also absorb the water losses,” MPIW Chief Operating Officer Angelo David Berba said.

He explained that no local government unit would be willing to shoulder a high acquisition cost and then sell water at less than half the purchase price, stressing that it would be unsustainable for any utility not to raise rates if bulk water prices increase.

Berba noted that AIC’s proposed bulk water rate of PHP 41 per cubic meter – exclusive of value-added tax and water losses – could result in consumer rates doubling or even tripling.

“We can only comment on the end result for our customers. The bulk water tariff initially proposed was really expensive, and we think the rate was excessive,” he said. “I don’t think pricing is prudent.”

He added that the Metro Iloilo Water District currently sells water at PHP 15 to PHP 18 per cubic meter, Value Added Tax (VAT) included.

MPIW is in the process of implementing a phased rate adjustment. The base rate rose from PHP 20 to PHP 25.20 per cubic meter in November 2025 billings – an increase of PHP 5.20.

A second tranche will take effect in March 2026, increasing the rate to PHP 28.67 per cubic meter, or an additional PHP 3.47.

Berba clarified that MPIW would remain Iloilo City’s primary water distributor, but it is not required to be an off-taker in AIC’s bulk water arrangement.

“Discussions are needed. Unfortunately, we haven’t had any discussions with them yet. They have not approached us, and no negotiations have taken place so far,” he said.

Under the proposal, AIC will invest PHP 5 billion to build a water treatment facility that will divert 86 million liters per day of raw water through an intake structure, process it, and supply treated bulk water to designated off-takers.

Potential off-takers include MPIW and South Balibago Waterworks.

On Monday, MPIW donated a mobile shower unit to the city government for use in evacuation centers, aiming to improve sanitation during emergencies.

“This is a trailer truck. This will ensure proper sanitation, not only by providing static tanks, the jerry cans, but at least the evacuees can take a bath,” Berba said.