‘WINNER BY DEFAULT’: Aboitiz secures PHP5.1-B Iloilo City water project

By Rjay Zuriaga Castor

With no competing bids submitted, Aboitiz InfraCapital Inc. (AIC) has secured the PHP5.12 billion Iloilo Bulk Water Supply Project through a public-private partnership (PPP) with the city government of Iloilo.

The Pre-Qualifications, Bids, and Awards Committee (PBAC) confirmed that the 90-day comparative challenge period ended on Oct. 6 with no other firm submitting bid documents.

Following this, the PBAC passed a resolution declaring AIC as the sole proponent and recommended the issuance of a Notice of Award (NOA) in its favor.

Iloilo City Mayor Raisa Treñas-Chu issued the NOA to AIC on Oct. 23, officially awarding the unsolicited proposal aimed at meeting the city’s long-term water needs.

Under PPP rules, AIC has up to 10 calendar days from receipt of the NOA to sign the contract with the city government.

Once signed, the city will issue a Notice to Proceed (NTP) within three days of contract approval, with the NTP date marking the project’s official implementation start.

This bulk water initiative will be Iloilo City’s third PPP project, following the Central and Terminal Market redevelopment with SM Prime Holdings Inc. and the Integrated Solid Waste Management Facility with Metro Pacific Investments Corp.

86 MLD WATER PROMISED

AIC’s proposal involves constructing a water treatment facility capable of processing up to 86 million liters of raw water daily (MLD).

The treated water will be sold and delivered to off-takers such as Metro Pacific Iloilo Water and South Balibago Waterworks.

Initial delivery is projected at 32 MLD by 2029, with phased expansion planned in the following years.

AIC first submitted the unsolicited proposal in August 2024, but the PBAC initially rejected it before accepting it for negotiation in January 2025.

On May 15, 2025, AIC was granted Original Proponent Status after several months of evaluation and revisions.

The company originally proposed a bulk water rate of PHP51.80 per cubic meter, later reduced to PHP40 following negotiations with city officials.

AIC identified the Jalaur River Multipurpose Project Phase II (JRMP II) in Calinog, Iloilo, as the project’s main water source.

The company earlier submitted a proposal to the National Irrigation Administration (NIA) to complete the JRMP II’s high-line canal, which is essential to water conveyance.

However, in April 2025, NIA said it could not proceed with AIC’s proposal due to conflicts with its comprehensive development plan and existing agreements.

Despite this, AIC President Cosette Canilao said the company remains in dialogue with NIA and that the project will push through regardless of the outcome.

NIA has separately announced it aims to complete the high-line canal by 2027.

In a related development, NIA recently signed a memorandum of understanding (MOU) with the Metro Iloilo Water District (MIWD) to study the feasibility of using JRMP II’s water for domestic supply.

The MOU covers the potential transfer of up to 86 MLD of water rights from JRMP II to MIWD.

Under the agreement, MIWD will construct and operate part of the high-line canal, including the intake and treatment systems, with eventual ownership reverting to NIA.

AIC clarified that the NIA–MIWD agreement remains exploratory and does not affect its proposed project’s implementation.