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Aboitiz InfraCapital Secures Local Development Council Backing for Iloilo Bulk Water PPP Project

ILOILO CITY LOCAL DEVELOPMENT COUNCIL ENDORSES ABOITIZ INFRACAPITAL BULK WATER SUPPLY PROPOSAL. Aboitiz InfraCapital (AIC) secured last May 21, 2025 Local Development Council backing for its Iloilo Bulk Water Supply Project, a key step toward long-term water resilience and sustainable growth in the province. In the photo are Iloilo City Councilors Irene Ong and Rex Sarabia (3rd and 4th from right, respectively) and Mayor Jerry P. Treñas (center). SOURCE: Office of the Iloilo City Mayor

Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz Group and operator of the country’s largest bulk water supply facility, secured a decisive endorsement from the Iloilo City Local Development Council (LDC) for its Iloilo Bulk Water Supply Project, propelling the proposal forward as a key driver of the province’s and city’s infrastructure agenda.

“We welcome the Local Development Council’s endorsement of the Iloilo Bulk Water Supply Project. We appreciate the LDC’s recognition that the project supports the local development plan. It is an important step in moving the proposal forward to ensure water security for Ilonggos,” AIC President & Chief Executive Officer Cosette V. Canilao said.

The LDC’s gave its approval and endorsement to the Iloilo City Council last May 21, 2025 following the granting of Original Proponent Status to AIC, and a transparent and thorough public consultation that sought the diverse inputs of public and private stakeholders from the city and barangay government, civil society, as well as retail and institutional customers.

“We are a strategic investor, bringing in substantial capital and a long-term commitment to partner with the City Government in delivering a sustainable bulk water supply for distributors in Metro Iloilo, including the Metro Iloilo Water District,” Canilao emphasized.

During the LDC meeting, the steep and unsustainable cost of vended water was highlighted: up to P225 per cubic meter from tankers, and up to a staggering P2,500 per cubic meter for every five (5)-gallon container.

“What is clear, therefore, is that the most expensive kind of water is no water at all. What is clear from the discussion at the ExeCom (Executive Committee) meeting is that it is the policy of the Treñas Administration to pursue all solutions to deliver safe, consistent, potable water to all Ilonggos–not just to uplift our standard of living, but most importantly to save lives,” said Iloilo City Councilor Atty. Rex Marcus B. Sarabia, LDC member and Chairperson of the Iloilo City Council Committees on Appropriations & Finance and Good Government & Public Accountability (Blue Ribbon Committee).

The Iloilo Bulk Water Supply Project proposal—developed under a transparent and robust public-private partnership model—is designed to directly address Iloilo’s growing demand for reliable and sustainable water access. The proposal responds to long-standing supply challenges that have held back agriculture, industry, and household development.

“This is a critical infrastructure investment designed to support the city’s growing needs. Our role is not transactional; it is transformational. We are stepping up to help build the foundation for Iloilo’s continued growth and resilience. Any narrative suggesting otherwise does a disservice to the city and its future,” Canilao added.

Full alignment with Iloilo City Comprehensive Development Plan

The Iloilo City Comprehensive Development Plan 2023-2028 identifies the city's priority legislative requirement goals of 1) sustainable and improved water quality and supply on major river sources, and 2) availability and sustainable management of water and sanitation for all.

AIC’s bulk water supply project, totaling P5 billion in investment, involves diverting 86 million liters per day (MLD) of potable bulk 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.

The Iloilo Bulk Water Supply Project is expected to unlock benefits such as:

  • Clean, affordable water for underserved communities
  • Job generation during construction and operation phases
  • Boosted agricultural and commercial productivity
  • Reduced reliance on deep wells, promoting environmental stewardship
  • Long-term water resiliency in the face of climate-related challenges

The LDC’s endorsement following a consultative and transparent approach that engaged public and private stakeholders alike now paves the way for next-phase City Council approvals.

Meanwhile, AIC’s water subsidiary, Apo Agua Infrastructura, Inc., jointly operates with the Davao City Water District the Davao City Bulk Water Supply Project (DCBWSP). The DCBWSP is the country’s largest bulk water supply facility, delivering 300 MLD of clean and potable water 24/7 to 96% of DCWD households (with a 99.6% customer satisfaction rating as of end-2024).

The DCBWSP was named the Best PPP in the Philippines by the UK-based International Finance Awards, a prime example of the transformative potential of PPPs in driving sustainable urban development.

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