BCWD inspects PPP Bulk Water Project
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Butuan City Water District (BCWD) Board of Directors (BOD), headed by Chairman Roldan Torralba, and Management, represented by GM Anselmo L. Sang Tian and AGM George Guduyo, inspected recently the Public-Private Partnership (PPP) Treated Bulk Water Project at the Taguibo River in Iyao, Anticala, Butuan City.
Other members of the BOD who joined the project inspection are Dr. Estacio Claudio, Mr. Crispin Young, Dr. Juanito Lao and Ms. Leah Mendoza.
The project is the result of the Joint Venture Agreement (JVA) between BCWD and a private company – the TwinPeak Hydro Resources Corporation in consortium with Equi-Parco Construction Company.
Accomplishments of the project, which is expected to finally solve the perennial problem of water supply interruptions during rainy days, are 58% for the dam and 98% for the sand filtration facility. The Taguibo Aquatic Solutions Corporation (TASC), the Special Purpose Company that undertakes the project is working double time to complete the construction of the facilities by December, this year.
It can be recalled that on April 23, 2013, BCWD executed a Contractual Joint Venture Agreement with following benefits expected to be enjoyed by the Water district:
- The Water District shall not incur any cash or monetary investment into the project, and all financial obligations for the development, construction, operation, and maintenance of the project shall be for the sole account of the Special Purpose Company (SPC-Taguibo Aquatic Solutions Corporation);
- The Water District shall be assured and guaranteed by the Special Purpose Company (SPC) of continued and improved water supply and quality. This will afford BCWD the opportunity for expansion with minimal financing costs; and
- There shall be no increase in water rates to the concessionaires of the Water District for the first three (3) years of this Agreement, solely for the reasons arising from the transactions contemplated under this Agreement. Adjustment may be due to factors that may shake the economic stability of the city or the nation; and
- PPP Partner through the Special Purpose Company (SPC) shall provide a program and budget for rehabilitation and protection of the Taguibo Watershed.
As far as the BCWD is concerned, the PPP project for Water Treatment and Bulk Water Supply will ultimately solve not only the recurrence of water supply interruption during rainy days but also low volume of water during long drought. The following are the advantages for BCWD to enter into this PPP project:
a) No costs from BCWD.
b) Stipulated condition for continuous supply of water during rainy days.
c) Stipulated condition for continuous supply during drought.
d) Undertake, at the partner company’s own cost, the reforestation of Taguibo Watershed that will benefit BCWD:
- Saving millions of pesos for this purpose which is an annual budget of BCWD;
- Saving thousands of pesos for the financial assistance to IP’s livelihood programs and social development;
- Saving thousands of pesos for manpower services and other facilities; and
- Massive re-greening of the degraded mountain compared to piecemeal if undertaken by BCWD due to financial constraints.
e) BCWD can address its objective to recharge as well as conserve the aquifer for future use without having shortage of water supply in its area of responsibilities.
The proposed cost estimate for the PPP project is Php 565 Million. Under the contract, the private sector proponent, for its own cost and account, will build and operate pre-treatment facilities such as sabo dam, impoundment weir, desander, sedimentation pond, gravity filters, and a new water treatment facility.
BCWD, on one hand, will purchase treated water supplied by the SPC in accordance with the Water Supply Development and Water Treatment Agreement and the terms of the Certificate of Successful Negotiation dated 19 December 2012.
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