Tender for Manila $1 billion water PPP project getting ready

Philippine newspapers have reported that the $1-billion water supply project for Metro Manilacould be tendered to the private sector by the Metropolitan Waterworks and Sewerage System (MWSS) by August or September this year. The New Centennial Water Supply Source project is expected to be awarded in 2014 and would the first public-private partnership (PPP) deal to be bid out by the MWSS. The feasibility study will be done by end-June and the approval by the National Economic and Development Authority (NEDA) would be expected after 45 days.

The New Centennial Water Supply Source project is part of long-running efforts by the government to find and develop a secondary water source to the Angat Dam in Bulacan, whcih supplies 97 percent of Metro Manila’s needs. The project value is estimated at $1 billion.

The New Centennial Water Supply Source project is expected to supply an additional 1,800 million liters a day (MLD) and add to Angat’s existing 4,000 MLD capacity. The project involves the realization of one or two greenfield dam developments and associated infrastructure to further expand the Metro Manila’s water sources. At full completion, the project is targeted to add a capacity of at least 1,800 million liters per day, but this will be achieved in stages.

The project is likely to comprise the following components: a) Laiban Dam and/or Kaliwa Low Dam; b) Head works and its appurtenant facilities; c) Conveyance structure from the diversion point to the water treatment facility(s); d) Water treatment facility(s); e) Hydropower facility(s).

The Public-Private Partnership Center of the Philippines has appointed RebelGroup in consortium with Allen &Overy, Crisil, PJS Law and Royal Haskoning DHV as the Transaction Advisor for the NCWS Project. The Transaction Advisor launched in February 2013 a market sounding to test the market interest on the project.

Since the launch in November 2010 of the PPP program, a total of three projects worth roughly P28 billion (US$678 million) have already been awarded:

  • DaangHari-SLEx link road concession
  • NAIA Expressway PPP Project
  • PPP for School Infrastructure Project (PSIP)