BY RIZA T. OLCHONDRA
A subsidiary of Ayala-led Manila Water Company Inc. (MWCI) on Friday said that it had sealed a 25-year deal with the Philippine Tourism Authority (PTA) to operate and manage the water and sewerage services system on Boracay Island.
Boracay Island Water Company (BWIC) has already executed a concession agreement to also rehabilitate, expand, and finance water and sewerage services on the island over the next two and a half decades, Manila Water said.
Earlier, MWCI was tasked to operate and manage the existing drainage system in Boracay as built by PTA.
BWIC is a joint venture company of Manila Water and PTA. Manila Water has 80 percent equity in the company while PTA owns 20 percent.
The agreement between Manila Water and PTA is the first successful enterprise under the 2008 National Economic and Development Joint Venture Guidelines for government-owned and controlled corporations.
Manila Water and PTA signed an initial agreement on the project last March.
PTA also has other existing assets, such as a water pipeline in Caticlan. That means bulk of BWIC’s investment will go to wastewater treatment.
Total cost for the 25-year undertaking in Boracay is initially estimated at P1.2 billion. Of this, about P1 billion will be invested in the first year alone.
Tourism Secretary Ace Durano earlier said that the joint venture would free up some P40 million in annual subsidy which the PTA provides to keep water services going in Boracay.
The savings may be used to develop other tourism areas, Durano said.
“In 2004 there were only 2,000 rooms in Boracay. Now there are over 6,000. Water and wastewater services will be crucial in sustaining the development of Boracay,” Durano said.
Boracay Island Water Company (BWIC) has already executed a concession agreement to also rehabilitate, expand, and finance water and sewerage services on the island over the next two and a half decades, Manila Water said.
Earlier, MWCI was tasked to operate and manage the existing drainage system in Boracay as built by PTA.
BWIC is a joint venture company of Manila Water and PTA. Manila Water has 80 percent equity in the company while PTA owns 20 percent.
The agreement between Manila Water and PTA is the first successful enterprise under the 2008 National Economic and Development Joint Venture Guidelines for government-owned and controlled corporations.
Manila Water and PTA signed an initial agreement on the project last March.
PTA also has other existing assets, such as a water pipeline in Caticlan. That means bulk of BWIC’s investment will go to wastewater treatment.
Total cost for the 25-year undertaking in Boracay is initially estimated at P1.2 billion. Of this, about P1 billion will be invested in the first year alone.
Tourism Secretary Ace Durano earlier said that the joint venture would free up some P40 million in annual subsidy which the PTA provides to keep water services going in Boracay.
The savings may be used to develop other tourism areas, Durano said.
“In 2004 there were only 2,000 rooms in Boracay. Now there are over 6,000. Water and wastewater services will be crucial in sustaining the development of Boracay,” Durano said.
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