Body needed for P702-M bulk water supply joint venture, Garcia says

February 26, 2012 10:28 am 

CEBU CITY, Feb. 25 -– Cebu Governor Gwendolyn Garcia has said the Manila Water Consortium and the provincial government will form a joint investment company (Jico) for the P702-million bulk water supply project that will bring water from the northern Cebu town of Carmen to Metro Cebu.

Garcia said there is a need to create a “corporate personality” because it is a joint investment and they need a policy-making body, which is the board of directors.

The board of directors will be composed of five members. Two members will be appointed by the Manila Water Consortium, while the other two will be chosen by the Cebu Capitol. The last one should be both agreed upon and appointed by the province and Manila Water.

Both parties should also agree in getting a general manager.

Garcia said the urgent signing of the contract and the formation of Jico should take place because they have to start the civil works next month.

Garcia said she had met with Manila Water officials in a closed-door meeting to discus about the final draft of the contract.

She requested the Cebu Provincial Board to hold a special session next week so she can get an authority from them to sign a contract with Manila Water.

The project will involve the production of 35 million liters per day of potable bulk water from Luyang River in Carmen town, Cebu.

The joint business venture of Cebu Province and Manila Water carries a 30-year contract.

It is a P702-million investment, in which Cebu Capitol has a share of 49 percent that would be taken from the savings of the provincial government.

In five years, the 49 percent share of Cebu Capitol is expected to be recovered.

The project has a 19.26 percent projected internal rate of return or more commonly known as return of investment for the province which can be translated to projects and services, Garcia said.

Garcia said she believes that 20 years from now, if there is adequate, sustainable supply of water, this means more investments for the province.

The project is expected to be finished in the last quarter of 2013. (PNA) dct/scs/EB/gb


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