Maynilad, Manila Water lead bidders for Iloilo supply project

By Francis Allan L. Angelo

http://www.bworldonline.com/BW092909/content.php?id=046

ILOILO CITY — Five bulk water suppliers have been accredited to join a bidding next month for the bulk water supply contract of Metro Iloilo Water District (MIWD).

The utility wants to contract some 20,000 cubic meters of water to serve part of its 31,000 consumers in Iloilo City and neighboring towns and address a supply shortfall caused by system losses and pilferages.

Adrian N. Moncada, a member of the MIWD board of directors, said five suppliers that intend to join the bidding are Maynilad Water Services Inc., Manila Water Co., Rio Verde Water Consortium, Inc., Abejo Builders Corp., and Solerex Water Technologies, Inc.

These companies have submitted pre-bidding requirements to the MIWD. They must satisfy three prerequisites to win the contract — quality, quantity and pressure.

The bulk water supply deal will require the winning bidder to look for sources and establish supply, and connect to the MIWD’s four injection points in Jaro, Iloilo City and the towns of Leganes, San Miguel and Pavia. Each injection point has corresponding volume capacities of — Jaro, 5,000 cubic meters (cu. m.); Leganes, 2,000 cu. m.; San Miguel, 3,000 cu. m.; and Pavia, 10,000 cu. m.

The bidders must specify in their tenders the price per cubic meter and the injection point where they intend to transmit water supply.

“The bid price must not exceed the approved budget for construction of P15 per cubic meter which is stipulated in the terms of reference of the bidding,” Mr. Moncada said. The MIWD charges P15.90 for the first 10 cu. m. consumed by its clients.

Celso G. Javelosa, MIWD board chairman, said the utility might award separate supply contracts to two to three bidders.

“The presence of three suppliers will also allow competition to kick in which will redound to affordable water rates,” Mr. Javelosa said on the sidelines of the MIWD board meeting last week.

When asked if the bulk water supply contract would hike rates, Mr. Javelosa said charges to consumers won’t go up, especially if non-revenue water (water lost to pilferage and leakages) is reduced from the current level of 42%.

The MIWD produces some 45,000 cu.m. of water from surface and underground sources, Mr. Javelosa said. But actual volume distributed reaches only 26,100 cu.m. because of system losses and pilferages.

Mr. Moncada said the additional 20,000-cu.m. supply from bulk contractors would serve an additional 23% of the total number of consumers. “In the next four to six months, fresh water supply will be available from the winning bidders,” he added.

Some 74% or 23,000 MIWD consumers are based in Iloilo City while others are in the towns of Pavia, Sta. Barbara, Cabatuan, Maasin, San Miguel and Oton.

Warren D. Palermo, MIWD operations chief, said the water firm produces 45,000 cu.m. of water a day, but 42% is considered non-revenue water due to technical and physical losses.

Mr. Palermo said physical losses are brought about by faulty lines not yet rehabilitated, while technical losses come from faulty water meters. Pilferages also contribute to losses.

The utility has rehabilitated almost all systems except at Lapuz in Iloilo City.

Mr. Palermo said the utility has yet to restore 100% of the system’s pressure before Typhoon Frank hit last year because of changes in the water flow from the Maasin watershed. Heavy siltation at the MIWD treatment plant in Sta. Barbara town also affected water quality.

Aside from the bulk water, Mr. Moncada said the utility was looking for surface water sources to augment their supply.

Mr. Moncada said the MIWD’s ground well sources in San Miguel and Oton are drying up.

A recent study by the Department of Environment and Natural Resources (DENR) showed salt water intrusion in the aquifers of Oton. Also, the replenishment rate of aquifers in San Miguel has slowed down, resulting in lower water production.

Mr. Moncada said the utility was also considering the P15-billion Jalaur River Multi-Purpose Project of the National Irrigation Administration as another source.

Mr. Moncada said the project had allocated some 80,000 cu m of water to MIWD which can sustain the water firm’s requirements for the next 50 years.

Other potential sources being eyed are the Sibalom River system in southern Iloilo and the Tinagong Dagat lake in the town of Lambunao, Iloilo.