The Bacolod City Water District (BACIWA) has submitted a letter of intent to participate in the pioneering Bulk Water Supply Project of the Negros Occidental provincial government, Gov. Eugenio Jose Lacson said Wednesday, July 19.
The minimum committed volume of water BACIWA aims to avail of for the duration of the project is 10 million liters a day (MLD) subject to the conduct of due diligence and execution of a definitive agreement, its general manager Mona Dia Jardin said in a letter to Lacson.
“That is already a good amount that we were expecting from Bacolod,“ Lacson said.
Lacson said with the BACIWA letter of intent the project will be more beneficial for investors.
The investors forum for the bulk water project is set August 10 and expected to join are Aboitiz InfraCapital, Manila Water, Suez Water Technologies, Bulacan Bulk Water (San Miguel), and Genesis Water Technologies.
The provincial government is in a better position now to make a presentation to the investors, Lacson said.
The project aims to address the increasing water demand of the province by developing surface water as the source to provide a sustainable and potable water supply to Bacolod City, Talisay City, Silay City, Victorias City, and the municipalities of EB Magalona and Manapla.
The consolidated volume purchase of treated bulk water is expected to result in a lower Bulk Water Charge, based on economies of scale, the project proposal states.
The construction, operation, and eventual transfer of large capacity water treatment and conveyance systems is expected to provide a more stable and sustainable supply of treated bulk water over the long term, as well as allow scarce groundwater resources to replenish, it added.
Jardin emphasized that the Letter of Intent is not intended to contractually bind BACIWA and is only an expression of interest, subject to the conduct of due diligence and execution of a definitive agreement.
BACIWA shall not be contractually bound unless and until it enters into a formal, written Memorandum of Agreement or some other definitive agreement, which must be in form and content satisfactory to the parties, she said.*