ILOILO City – As of August 2025, the Iloilo City Council-approved Iloilo Bulk Water Supply Project is on course for a successful bidding by year-end.
Following the Pre-Bid Conference for the Unsolicited Proposal-Development of the Iloilo Bulk Water Supply Project held on August 8, 2025, the Public-Private Partnership (PPP) Office of Iloilo City announced that so far, no parties have expressed interest in challenging the current project proposal, indicating the project proposal’s strength and merit.
“Please be advised that no interested parties or their authorized representatives attended the scheduled pre-bid conference. The Iloilo City Government will continue to accept competitive proposals until 6 October 2025,” Iloilo City Public Bids and Awards Committee Chairman Melchor U. Tan, said in a Bid Bulletin posted on the Iloilo City Government’s Facebook page last August 13, 2025.
Nevertheless, the ongoing Swiss Challenge provides opportunities for additional competitive proposals from qualified players.
A Swiss Challenge is generally defined as a procurement process where a government agency offers other private entities a chance to submit matching proposals for a project, following an unsolicited proposal from an original proponent. If a better offer is made, the original proponent may match the better offer – thus, encouraging innovation through robust private sector participation.
In turn, this gives the Iloilo City Government more options to consider – ensuring Ilonggos benefit from the best possible proposal that serves their interests.
Last June 2025, the Iloilo City Council unanimously endorsed Aboitiz InfraCapital’s (AIC) proposal to develop the Iloilo Bulk Water Supply Project. The proposal was also previously endorsed by the Iloilo City Local Development Council.
With a total investment amounting to P5.12 billion, the Iloilo City Bulk Water Supply Project will involve diverting water from a raw source through a water intake facility. Following a thorough treatment process, the treated water will be delivered to different city off-takers.
This project, with a capacity of 80 million liters per day of potable bulk water, directly enables a wide range of socio-economic drivers for the city, including a reliable and consistent water supply, improved water quality, and support for local and economic growth.
Proposed Rate: Reasonable and Viable
The project’s proposed rate of P40 per cubic meter reflects deliberate consideration of limited water sources, raw water conditions, and market factors, and was carefully determined to account for the infrastructure to be built.
This includes the water treatment facility, transmission lines, and relevant appurtenances, and the corresponding treatment costs associated with variability in water source, raw water conditions, and other relevant market factors.
Meanwhile, observers have noted that once successfully completed, the Iloilo Bulk Water Supply Project will provide redundancy in the city’s water system, as previously encouraged by then-Mayor Jerry P. Treñas–by ensuring supply resiliency, source diversity, and reasonable pricing.
The project, a proposed public-private partnership, is inclusive and complements the water distribution system; it does not exclude any current water players, and business co-existence is possible and encouraged.
Furthermore, the project proposal promotes an “unbundled” water sector in Iloilo City, keeping water supply and distribution roles separate. This enables each player to focus on their core expertise, ultimately serving the Ilonggos more effectively.
AIC remains dedicated to working with the Iloilo City Government in ensuring the project proposal is effective in its impact, reasonable to consumers, and benefits Iloilo City as a whole.
About Aboitiz InfraCapital
Aboitiz InfraCapital, Inc., the infrastructure arm of the Aboitiz Group, aims to build purpose-driven infrastructure that spurs economic growth and improves lives. Now in its 10th year, it develops Economic Estates as well as Water, Digital Infrastructure, and Transport & Mobility projects that enable businesses and uplift communities.
Aboitiz InfraCapital’s current business units include Apo Agua Infrastructura, Inc., which, together with the Davao City Water District, operates the award-winning Davao City Bulk Water Supply Project, the country’s largest bulk water supply facility.
Other business units include TARI Estate in Tarlac; LIMA Estate and LIMA Water Corporation in Batangas; Mactan Economic Zone 2 Estate and West Cebu Estate in Cebu; Apo Agua Infrastructura, Inc. in Davao City; and Unity Digital Infrastructure, Inc.
Aboitiz InfraCapital also operates Mactan-Cebu International Airport in Cebu, Laguindingan International Airport in Misamis Oriental, and Bohol-Panglao International Airport, the country’s second-, sixth-, and ninth-busiest gateways, respectively./PN
