METRO Pacific Investments Corp. has formalized its entry as water provider in Dumaguete City and nearby towns in Negros Oriental province by sealing an accord last Tuesday.
In a disclosure, MPIC said its subsidiary MetroPac Water Investments Corp. (MPW) signed a joint venture agreement (JVA) with the Dumaguete City Water District (DCWD).
The 25-year deal covers the rehabilitation, operation, maintenance and expansion of DCWD’s existing water distribution system and development of wastewater facilities.
As previously disclosed, the project cost is estimated at P1.62 billion, with an initial equity investment of P700 million.
The JVA calls for the establishment of a joint venture corporation that shall implement the project, including the right to bill and collect tariff for the water supply and wastewater services provided to the customers in the DCWD’s coverage area.
In May last year, the Pangilinan-led MPIC received the notice of award from the DCWD to enhance water and wastewater services in Dumaguete City.
By the virtue of Presidential Decree 198 and Sangguniang Panglungsod Resolution 96, the DCWD became a water district in 1977.
At present, DCWD supplies 38 million liters per day of potable water to more than 32,000 customers in Dumaguete City and portions of the municipalities of Valencia, Sibulan and Bacong.
As of 2019, the estimated population in the service area of DCWD is 165,984 and is expected to grow to over 242,000 by 2044.