ILOILO City – Confronted with a water supply problem and an ever-growing demand from rapid urbanization, the Iloilo City Government has thrown its full support behind a proposed P5-billion bulk water supply project by Aboitiz InfraCapital (AIC) — seen as a long-term fix to the city’s chronic supply shortfalls.
The Sangguniang Panlungsod unanimously approved a resolution in June 2025 granting Original Proponent Status (OPS) to AIC, marking a key step toward launching the Iloilo Bulk Water Supply Project, which aims to deliver up to 86 million liters of potable water daily from the Jalaur River.
“This is a major step forward in securing a clean, affordable, and reliable water supply for our people. Access to water is not a luxury, it is a basic right that we are committed to uphold,” said former mayor Jerry Treñas, who endorsed the project during the May 2025 Local Development Council (LDC) meeting.
The city currently faces a significant water supply gap, with Metro Pacific Iloilo Water (MPIW) providing just 53 million liters per day, far below the city’s estimated daily demand of over 140 million liters. That demand is expected to rise 7% annually, driven by rapid population growth and development.
“What is clear is that the most expensive kind of water is no water at all,” said Councilor Rex Marcus Sarabia, chair of the committees on Appropriations, Finance, and Good Government. “The city cannot afford to delay solutions while demand outpaces supply. This bulk water project is a critical part of our strategy for resilient, inclusive development.”
Now that AIC has been granted OPS, the project will undergo a 90-day Swiss Challenge, a public-private partnership mechanism where other bidders can submit competing proposals. Aboitiz reserves the right to match the best offer to secure the final contract.
The project includes provisions for environmental safeguards, social impact assessments, and tariff transparency. AIC president and chief executive officer Cosette Canilao assured the public that all components of the proposal will comply with national regulations and include stakeholder consultations.
“We see Iloilo as a growth center outside Metro Manila. But no investor will come without stable access to water. Roads and power are already in place, this water project completes the infrastructure trifecta,” she said.
However, concerns remain over the project’s affordability. MPIW and other private sector players have raised questions over the proposed P41-per-cubic-meter bulk water rate (excluding VAT). AIC clarified that the pricing will undergo further regulatory review and competitive benchmarking under the Swiss Challenge.
City officials emphasized that the proposal passed a stringent evaluation by the PPP Selection Committee and the City Legal Office. They also highlighted that the Swiss Challenge provides transparency and a level playing field for competing interests.
In addition to augmenting supply to both the Metro Iloilo Water District (MIWD) and possibly MPIW, the Aboitiz-led project seeks to lessen reliance on overdrawn groundwater sources, generate local employment, and ensure water access to vulnerable communities.
“We are not only preparing for the needs of today,” Treñas said, “We are laying the groundwork for a water-secure Iloilo, for generations to come.”/PN
