Apo Agua Infrastructura, Inc. (Apo Agua), a joint venture company between Aboitiz Equity Ventures (AEV) and J.V. Angeles Construction Corporation (JVACC) signed on November 29, 2018 a PHP9 billion Omnibus Notes Facility and Security Agreement with a consortium of lender-banks, to finance the construction and operations phases of the Davao City Bulk Water Supply Project (DCBWSP) of the Davao City Water District (DCWD). A ceremonial signing was done on January 24, 2019.
The consortium of lender-banks is composed of BPI Capital Corporation as Mandated Lead Arranger and Bookrunner, Bank of the Philippine Islands, China Banking Corporation, Development Bank of the Philippines, and Bank of Commerce, as Initial Note Holders, BPI Asset Management and Trust Corporation as Trustee and Notes Facility Agent.
The DCBWSP is a strategic infrastructure initiative that will shift the dependence of Davao City’s main water supply from groundwater wells to the more sustainably-sourced surface water from the Tamugan River. Through this source, the project will access both the right quality and ample quantity of water in order to allow the DCWD to temporarily shut down many of its groundwater well sources. This, in turn, will ensure the preservation of the city’s water table and save it from irreversible environmental degradation such as land subsidence and saltwater intrusion–both typical results of groundwater over-extraction.
Set to be one of the largest private bulk water supply facility in the country, the project will provide the DCWD with over 300 million liters per day (mld) of safe water. A first in the country, the project’s water treatment facility will be powered by renewable energy sourced from a hydroelectric power plant. The project also involves two components: Part A being undertaken by Apo Agua involves construction of intake facilities, a water treatment facility, and treated water pipelines; Part B is being handled by the DCWD and involves tapping and interconnecting pipes, installation of reservoirs, and laying of distribution lines.
On November 26, 2018 Apo Agua held the project’s Construction Kick-Off at its project site in Brgy. Gumalang, Baguio District, which was witnessed by President Rodrigo R. Duterte along with key project stakeholders. The event serves as a ceremonial start to the project’s three-year construction phase which began with engineering design works in 2018. Apo Agua is targeting to commence operations by the first half of 2021.