Water supply deal for Davao awarded soon?

Subscribe Now May 19, 2014 at 09:06am

The consortium that proposed bulk water supply to the city's water district may bag the project due to the absence of a counterproposal from any group under a Swiss Challenge scheme, according to a spokesperson of the utility concerned.

In a recent interview, Imelda T. Magsuci, spokesperson of the Davao City Water District, said the group of Aboitiz Equity Ventures and JV Angeles Construction Corp. can be awarded the contract after the agency’s board approves the proposal.

A check with the agency showed no other company beat the April 14 deadline for submission of counterproposals.

Last year, the consortium submitted the unsolicited proposal to develop the Tamugan River project in order to provide the city with 300 million liters of tap water daily.

Although the consortium did not mention investment cost for the project, water district sources said about P8.5 billion is needed to develop the project based on 2009 prices.

Officials of the water utility had said two years ago that the project has to be completed by 2017, as a current 3.24% annual growth rate in demand means demand would equal capacity by 2018.

The city’s population is currently estimated at some 1.5 million, the largest among cities outside Metro Manila, with a population growth rate exceeding 3.5% annually due to influx of workers and students from neighboring provinces.

Source: bworldonline.com

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