Discussion Ongoing – SRP Manager (May 2006)
Published: 02 May 2006
by Regina Aguilar
A Cebu-based water company is eyeing to put up a P100-million desalination facility at the South Road Properties (SRP) in a bid to augment the city’s water supply.
SRP manager Paul Villarete said that the discussion with Mactan Rock Industries is still ongoing.
“Nothing is final yet because the desalination facility is expandable, but we’re looking at the possibility of letting Mactan Rock operate the desalination facility,” said Villarete.
Lito Maderazo, executive director of Mactan Rock Industries Inc., said the project would push through once the Metropolitan Cebu Water District (MCWD) approved or accepted their proposal.
With the owner of the company tagged as a Bando Osmeña-Pundok Kauswagan (BO-PK) supporter, speculations abound that the proposal will be approved.
Villarete, however, said that it is impossible to mix water with politics.
“I don’t think it would be an issue because water is too technical. The better one has to be chosen–the one that can offer a guaranteed supply that is not disadvantageous to the government,” said Villarete.
Maderazo, on the other hand, refuted claims that they are political supporters of the BO-PK.
“Yes, we support the existing head of the local government but not BO-PK itself. But we admit that we admire the investor-friendly local government, which is good for the economic activity of the city,” said Maderazo.
He said the city government’s desalination facility would not be enough to supply the needs of future locators at the SRP.
“We’re looking at locating and setting up our own desalination facility at the SRP because the capacity of the two desalination units installed by the city government would not be enough to meet the full development requirements of the area,” he said.
The city government’s desalination units, which were bought from the water company, can only generate 550 cubic meters of water per day.
The SRP, however, would need a supply of 10,000 cubic meters when it reaches its full development, Maderazo said.
Mactan Rock’s planned P100-million desalination facility is part of the seven small water project proposals of the company to the MCWD that offers to sell water at a cheaper price.
Mactan Rock has proposed to the MCWD to deliver about 30,000 to 40,000 cubic meters of water for only around P18 per cubic meter.
The MCWD, which is beating deadline to close the Carmen Bulk Water Supply Deal with the consortium of Ayala Corp. and Central Equity Ventures, Inc. (Ayala-CEVI), will have a cheaper deal with Mactan Rock.
The consortium proposed to sell water at P25.72 per cubic meter, while the MCWD insisted on a price range of between P19 to P23.
Part of the Ayala-CEVI’s price will pay for its investments, including a pipeline that would span the 24-kilometer distance between Carmen town and Liloan town.
But MCWD will also have to build its own pipeline from Liloan to its own distribution network.
Mactan Rock’s offer, on the other hand, would not require the MCWD to build a pipeline infrastructure.
by Regina Aguilar
A Cebu-based water company is eyeing to put up a P100-million desalination facility at the South Road Properties (SRP) in a bid to augment the city’s water supply.
SRP manager Paul Villarete said that the discussion with Mactan Rock Industries is still ongoing.
“Nothing is final yet because the desalination facility is expandable, but we’re looking at the possibility of letting Mactan Rock operate the desalination facility,” said Villarete.
Lito Maderazo, executive director of Mactan Rock Industries Inc., said the project would push through once the Metropolitan Cebu Water District (MCWD) approved or accepted their proposal.
With the owner of the company tagged as a Bando Osmeña-Pundok Kauswagan (BO-PK) supporter, speculations abound that the proposal will be approved.
Villarete, however, said that it is impossible to mix water with politics.
“I don’t think it would be an issue because water is too technical. The better one has to be chosen–the one that can offer a guaranteed supply that is not disadvantageous to the government,” said Villarete.
Maderazo, on the other hand, refuted claims that they are political supporters of the BO-PK.
“Yes, we support the existing head of the local government but not BO-PK itself. But we admit that we admire the investor-friendly local government, which is good for the economic activity of the city,” said Maderazo.
He said the city government’s desalination facility would not be enough to supply the needs of future locators at the SRP.
“We’re looking at locating and setting up our own desalination facility at the SRP because the capacity of the two desalination units installed by the city government would not be enough to meet the full development requirements of the area,” he said.
The city government’s desalination units, which were bought from the water company, can only generate 550 cubic meters of water per day.
The SRP, however, would need a supply of 10,000 cubic meters when it reaches its full development, Maderazo said.
Mactan Rock’s planned P100-million desalination facility is part of the seven small water project proposals of the company to the MCWD that offers to sell water at a cheaper price.
Mactan Rock has proposed to the MCWD to deliver about 30,000 to 40,000 cubic meters of water for only around P18 per cubic meter.
The MCWD, which is beating deadline to close the Carmen Bulk Water Supply Deal with the consortium of Ayala Corp. and Central Equity Ventures, Inc. (Ayala-CEVI), will have a cheaper deal with Mactan Rock.
The consortium proposed to sell water at P25.72 per cubic meter, while the MCWD insisted on a price range of between P19 to P23.
Part of the Ayala-CEVI’s price will pay for its investments, including a pipeline that would span the 24-kilometer distance between Carmen town and Liloan town.
But MCWD will also have to build its own pipeline from Liloan to its own distribution network.
Mactan Rock’s offer, on the other hand, would not require the MCWD to build a pipeline infrastructure.