Aboitiz InfraCapital (AIC), the infrastructure arm of the Aboitiz Group, is advancing in its plans to guarantee long-term water security and resilience in Iloilo City and province, following its receipt of Original Proponent Status (OPS) for its proposal to develop the Iloilo Bulk Water Supply Public-Private Partnership (PPP) project.

The OPS was awarded to AIC in a ceremony at Iloilo City Hall last May 15, 2025 attended by the City and AIC officials, including Iloilo City Mayor Jerry P. Treñas and AIC President & Chief Executive Officer Cosette V. Canilao.

This milestone underscores the steady progress of a well-managed PPP process, highlighting the joint efforts toward a long-term, sustainable water solution that complements the city’s existing and planned water infrastructure.

“This is a major step forward in strengthening Iloilo’s water security and infrastructure resilience. We are honored by the city’s trust given to us through the OPS, and we are committed to working closely with our partners to co-create a future-ready water system for all Ilonggos,” Canilao said.

OPS is granted to the proponent of an unsolicited proposal after successful negotiation with the proposal’s Implementing Agency, acknowledging the proponent’s proposal as qualified.

In his remarks, Mayor Treñas emphasized the need for water redundancy as a critical component of Iloilo City’s economic expansion. In 2023, Iloilo City was named Western Visayas’ fastest-growing economy after posting a 10.5% increase in its gross domestic product, fueled by a robust services sector.

“The need for water is really tremendous. And we can see that even with a desalination plant —because of rapid growth—we will continue to need additional water,” Mayor Treñas said.

A sustainable water solution for Iloilo

The awarding of OPS to AIC reflects the merit of its bulk water supply project, which offers a technically sound, financially viable, and socially responsive solution to Iloilo’s urgent water needs by meeting the region’s current and critical demand-supply gap.

Once completed, the project will deliver long-term water security through the development, operation, and maintenance of new water infrastructure designed to meet the demands of a growing population and expanding Iloilo economy.

“Iloilo’s growing water concerns need urgent, collaborative solutions. A resilient water system with multiple players working together is key to ensuring that communities, businesses, and industries can thrive,” said AIC Vice President and Head of Water Business Eduardo V. Aboitiz.

The PPP process provides an opportunity for other qualified parties to submit comparative proposals during the Swiss Challenge stage—a competitive bidding process ensuring transparency and fairness.

Reliable & consistent supply, improved water quality for Ilonggos

AIC’s bulk water supply project involves diverting 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.

This project, with a capacity of 86 million liters per day (MLD) of potable bulk water, directly enables a wide range of socio-economic drivers for the city, including a reliable and consistent water supply, improved water quality, and support for local and economic growth.

Further, AIC’s commitment to sustainability and local partnerships ensures that the project aligns with national and regional development goals.

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 country’s largest bulk water supply facility, which delivers 300 MLD of clean and potable water.

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.