December 02, 2013

Bulk water supply project attracts interest

The government’s first water PPP deal, the P24.4b Bulacan bulk water supply project, has drawn the interest of water concessionaire Maynilad Water Services, Manila Water Corp, and San Miguel Corp., according to a Philippine Daily Inquirer article.. The project, which will be implemented by the Metropolitan Waterworks and Sewerage System, aims to supply potable water to 24 areas in Bulacan province. It is part of three projects valued at about $1b that the agency is looking to implement.

Our Take: A bulk water project would make economic sense for concessionaires, Maynilad and Manila Water. As a backward integration move, the project should likewise lessen Metro Manila's dependence on Angat dam, its primary source of water supply. – WealthSec