WATER REDUNDANCY: Aboitiz Vows 24/7 Water Access for Iloilo City in Bulk Supply Project

By Rjay Zuriaga Castor

Aboitiz InfraCapital (AIC) has committed to providing round-the-clock, reliable water access at PHP40 per cubic meter to Iloilo City residents through its proposed bulk water supply project, which recently secured original proponent status (OPS).

The OPS, conferred to the Aboitiz Group’s infrastructure arm on Thursday, May 15, gives AIC the advantage to match any superior offer during the Swiss challenge stage of the procurement process, moving the project closer to implementation.

“We have seen firsthand the urgent need for sustainable water solutions—not just in Iloilo, but across the country. As Iloilo City continues to progress, it is necessary to provide a sustainable water source to support its growth,” said Eduardo Aboitiz, AIC vice president and head of water business.

Eduardo said the proposed bulk water supply project is AIC’s long-term commitment to secure, safe, and reliable water for the people of Iloilo City and Metro Iloilo.

“More than just a project, this is a commitment—of responsible stewardship, of innovation in water infrastructure, and of genuine partnership with local government units like yours who share our vision,” he added.

AIC President Cosette Canilao highlighted the mutual trust built over the 90-day negotiation period with the city government, which she described as the foundation of a successful public-private partnership.

“This project is not just about infrastructure—it’s about partnership. This is a crucial first step for our dream of a long-term collaboration between Aboitiz InfraCapital and the city government,” she added.

Following the OPS conferment, the proposal will now undergo further evaluation by the Iloilo City Local Development Council and City Council.

If approved, the project will proceed to the Swiss challenge.

If no challengers emerge or AIC successfully matches a superior offer, the city will award the project to AIC.

Water Security, Redundancy

Iloilo City Mayor Jerry Treñas emphasized that a bulk water supply will ensure redundancy in the city’s water system, especially amid rapid urban growth.

“With this unsolicited proposal, there will not only be available water for Iloilo City, but there will be redundancy in the supply of water,” he said.

Treñas said additional water supply is still needed despite Metro Pacific Water’s ongoing construction of the largest desalination plant in the country.

The plant, expected to produce about 65 million to 66.5 million liters of potable water per day, is targeted to be operational by early 2027.

“The need for water is really tremendous, and we see that even with the desalination plant of Metro Pacific Water, because of the rapid growth, we will continue to need additional water,” he said.

Atty. David Abraham G. Garcia, head of the Iloilo City PPP Office, clarified that the city government will not provide direct funding to the project.

The city government’s role will focus on helping with permits and securing off-takers or bulk water buyers.

AIC, on the other hand, is responsible for building a water treatment facility and an 8-kilometer water pipeline.

The project is valued at PHP5.2 billion and is expected to supply 86 million liters of potable treated water per day to Iloilo.

Negotiated Rates

Iloilo City’s PPP committee initially rejected AIC’s proposal due to its proposed rate of PHP51 per cubic meter—more than double the current rate of PHP22 charged by Metro Pacific Iloilo Water.

Following negotiations that began in February, AIC agreed to reduce the rate to PHP40 per cubic meter.

Canilao defended the revised rate, noting that while it is higher than existing rates, it is still significantly lower than vended water costs.

These range from PHP150 to PHP220 per cubic meter from water trucks and up to PHP2,500 per cubic meter from 5-gallon containers.

“What is more expensive is the absence of water,” she said.

“The moment we supply water and make it available for everyone, the effect is that their water consumption and cost will reduce,” she added.

Jalaur Dam Link

AIC has also submitted a separate proposal to the National Irrigation Administration (NIA) to complete the highline canal of the Jalaur River Multipurpose Project Phase II (JRMP II) in Calinog, Iloilo.

The Jalaur Dam will be AIC’s main water source for the bulk water project.

“What we wanted to do is just to expedite it because if they have issues in securing funding for the highline canal, then we’re here—we will be able to do that for them to ensure that water is provided for the city,” Canilao explained.

However, NIA announced in April that it is “unable to proceed” with AIC’s proposal due to misalignment with its comprehensive development plan and potential conflicts with existing agreements.

Despite this, Canilao said AIC is still in talks with NIA for a possible reconsideration.

She assured that the bulk water supply project for Iloilo City will push through regardless of NIA’s decision.

“If NIA does the highline canal by themselves, then there’s no change in the source of water. It’s really the highline canal, which will be completed either by NIA or by us if they accept our proposal,” she added.

Earlier this April, NIA announced that it is targeting to finish the highline canal by 2027.