The Bulacan Bulk Water Supply Project (BBWSP) of the MWSS has been shortlisted for the 2017 Global Water Awards for Water Deal of the Year. The award is given to projects that made the biggest contribution to the advancement of private sector participation in the international water sector.
The 2017 Global Water Awards will be presented at the Palacio de Cibeles in Madrid, Spain on 24 April 2017 as part of the Global Water Summit, the major business conference for the water industry worldwide.
The Php 16.32B water project involves the supply of treated bulk water to 21 municipalities and 3 cities in Bulacan Province. The project was bidded out by MWSS in June 2014 after getting NEDA-Board confirmation on Nov 21, 2013. The Notice of Award was given on December 7, 2015 and contract signing was on Jan 15, 2016.
The winning contractor, a joint venture of San Miguel Holdings (80%) and Korea’s K-water (20%), submitted the lowest bid at a stunningly low bulk water charge of Php8.50 per cubic meter and will develop the infrastructure. The deal has no offtake agreements or guarantees from the MWSS but the consortium of San Miguel and K-Water was able to negotiate individual water purchase agreements with the water districts operating in Bulacan. According to the organizers of the Global Water Awards, the contractor’s due diligence gave them valuable insight into current demand and regional growth forecasts, allowing them to program their investments and predict investment needs for stage 1 (covering municipalities of Balagtas, Bocaue, Marilao, Meycauayan, Obando and San Jose del Monte) and stage 2 (Bulacan, Calumpit, Guiguinto, Malolos, Paombong, Plaridel, Santa Maria) of the project as well as the demand-triggered Stage 3 which will bring in another 11 municipalities (Angat, Balagtas, Baliwag, Bustos, Dona Remedios Trinidad, Hagonoy, Norzagaray, Pandi, Pulilan, San Miguel, San Rafael) in 2026.
The prestigious annual Awards was established in 2006 by the Global Water Intelligence and recognizes the most important achievements in the international water industry in the water, wastewater and desalination sectors that are propelling the industry towards improved operating performance, innovative technology adoption and sustainable financial models. The other three projects that made it to the shorlist are the Aqaba Desalination Plant Financing in Jordan, Barka 4 IWP Financing in Oman, and the Vista Ridge Pipeline Financing in the United States