The bidding for the Negros Occidental provincial government’s P1.2 billion bulk water project has been declared a failure by the Bids and Awards Committee, Governor Eugenio Jose Lacson said.
The bulk water project hit a major snag over the proposed water tariff, which remains a contentious issue between the provincial government and the bidder.
Lacson said the resolution was served to the lone bidder on May 16.
The initial bidding was won by a consortium led by First Balfour, part of the Lopez Group of Companies, with Victorias Milling Company as the local partner.
Lacson explained that the current bid proposes a water cost of P24 per cubic meter, which the provincial government finds too high.
The government is pushing for a reduced rate of P14 per cubic meter.
Negotiations to resolve this tariff dispute are ongoing, with plans to conduct a rebidding once a more acceptable rate is agreed upon.
Lacson said other bidders may want to join, knowing the problem of the tariffs will be lowered, expressing optimism that the rebidding will attract more bids.
The provincial government plans to increase its share or equity from the initial P200 million, then ask the bidders to reduce the water rates.
Lacson also emphasized that the provincial government is fast-tracking the process to ensure the project’s timely completion.
Under the project, the winning bidder will enter into a contractual joint venture with the provincial government to finance, design, construct, operate, and maintain the system.
Lacson earlier reiterated his commitment to completing the bulk water project before his term ends.
Earlier, the provincial government said they would open the bidding process again for its P1.2 billion bulk water supply project, which aims to produce an additional 40 million liters of water per day (MLD).
The project will supply treated bulk water to six water service providers in Negros Occidental cities of Silay, Talisay and Victorias; the municipalities of Manapla and E.B. Magalona, as well as capital Bacolod City.
The bulk water supply project will involve engineering design, construction, operation, and maintenance of a water supply system with a minimum capacity of 34.5 MLD, sourced from the Imbang and Malogo Rivers.
The project aims to address ongoing potable water shortages in the province by developing surface water sources, reducing reliance on rapidly depleting groundwater resources.
This is expected to benefit thousands of residents and ensure a steady supply of clean water for domestic and commercial use./JB, WDJ