MANILA WATER Co., Inc. has won the right to operate the Bulacan water district, which is the site of the international airport being proposed by San Miguel Corp.
In a disclosure to the stock exchange on Wednesday, Manila Water said the project is expected to require a capital expenditure of P400 million over a 25-year contract period.
“[The project] is estimated to deliver a billed volume of 16 million liters per day by year 25,” the company said.
Manila Water said its consortium with wholly owned unit Manila Water Philippine Ventures, Inc. had received the notice of award from the Bulacan Water District for the implementation of the joint venture project.
The project covers the design, construction, rehabilitation, maintenance, operation, financing, expansion and management of the water supply system and sanitation facilities of the water district in the municipality of Bulakan in Bulacan province.
Upon the completion of certain conditions, Manila Water said the consortium and the water district will form a joint venture company to implement the project.
“The joint venture company could serve the airport being proposed to be built by San Miguel Corp. in the Municipality of Bulakan,” the company said.
The National Economic and Development Authority Board last month approved SMC’s unsolicited proposal to build a new international airport in Bulacan, although “confirmation is subject to final review of the concession agreement.”
SMC’s proposed airport will be built on a 2,500-hectare property with up to six runways, and to be configured to handle about 100 million passengers a year.
As an unsolicited proposal, SMC’s project will have to undergo a Swiss challenge, which requires an invitation for other companies to make competing offers, while giving the original proponent the right to match them.
Last week, Manila Water said the consortium was also awarded a similar project in the municipality of Balagtas in Bulacan province. The Balagtas project requires a budget of P400 million over a 25-year contract. It is expected to deliver a billed volume of 22 million liters per day by year 25. — Victor V. Saulon