PPP SCRAPPED: Negros Occidental pushes P1.1B bulk water project

By Dolly Yasa

BACOLOD CITY – After several bidding postponements and the eventual failure of bidding, the Negros Occidental provincial government will proceed with the PHP1.1-billion bulk water project using its own savings and scrapping the public-private partnership scheme.

Provincial Administrator Atty. Rayfrando Diaz told reporters Tuesday that the Capitol has shelved its initial plan for a PPP arrangement and will instead fully fund the Negros Occidental Bulk Water Project through provincial savings.

Diaz said the provincial government aims to complete the project within the term of Governor Eugenio Jose Lacson.

The Sangguniang Panlalawigan of Negros Occidental has already approved funding for the project’s first tranche worth PHP520 million, Diaz said.

He added that the first phase will cover construction from the water intake point to the bulk water treatment facility on a one-hectare lot purchased by the provincial government in Barangay Guimbalaon, Silay City.

“We are now trying to finish the terms of reference and all other financial and technical documents so that we can start the bidding process for Phase 1 of the project,” Diaz said.

If all goes as planned, bidding for Phase 1 will be held in October, he added.

Diaz said Phase 2, which will cost PHP600 million, is targeted to begin next year.

Phase 2 will involve the installation of conveyance pipes from the water treatment facility to Silay City, Talisay City, Bacolod City, and even E.B. Magalona.

He noted that partnering with a private firm would inevitably lead to higher water tariffs.

With the provincial government fully funding the project, water rates can be kept at PHP14 per cubic meter, Diaz said.

He added they are seeking a resolution of no objection from the Silay City government, including reclassification of the project site.

“We are hoping and praying they see the importance of the project in the lives of their people,” Diaz said.

The bulk water treatment facility is expected to draw about 34.5 million liters per day from the Malogo and Imbang Rivers in Victorias and Silay.

The original PHP1.2-billion bulk water project, under a PPP setup, was declared a failure of bidding by the Bids and Awards Committee due to issues over high water tariffs.

The bidding, which drew only one bidder, was pushed through after several postponements before being declared a failure on May 16.

The lone bidder was a consortium composed of First Balfour Inc., part of the Lopez Group of Companies; Victorias Milling Company; and FPIP Utilities Inc.

Lacson said the consortium’s proposed water rate of PHP24 per cubic meter was too high, adding that their intended takers were not amenable to it.

The provincial government wants the rate reduced to PHP14 per cubic meter, but the bidder was not agreeable.