Two infrastructure proposals of businessman Enrique Razon Jr. have passed key regulatory hurdles after his Wawa Bulk Water Supply Project was granted the remaining permit to proceed while his P8.7-billion offer to develop the Iloilo ports was cleared for evaluation.
The Philippine Ports Authority (PPA) recently gave Razon-owned International Container Terminal Services Inc. (ICTSI) a letter of acceptance for completeness on the port projects in accordance with the revised guidelines and procedures for entering into joint venture agreements between government and private entities, or the 2013 National Economic and Development Authority (NEDA) JV Guidelines.
With this, PPA will now begin to evaluate the legal, financial and technical merits of ICTSI’s proposal to modernize the Iloilo Commercial Port Complex and the Port of Dumangas, within a maximum of 60 days.
Christian Gonzalez, ICTSI Global corporate head, said the company has committed to cooperate with the PPA on this project and hopes to secure the original proponent status (OPS).
Once ICTSI obtains the OPS, the proposal will be turned over to NEDA for evaluation. If it gains the approval of NEDA, the proposal will go through a Swiss challenge.
Over the life of the concession
that will be agreed on with the PPA, ICTSI has estimated an investment of over P8.7 billion to fully develop the Iloilo Port Complex – including dredging and deepening of the drafts and channel to allow the direct entry of new generation, international vessels; and purchase of modern quayside crane handling equipment estimated to cost around P1.35 billion.
ICTSI is also offering to substantially invest in the development of the Port of Dumangas in order to seamlessly handle the spill over from the city port.
The Iloilo-Dumangas bid is ICTSI’s first foray in the Visayas with the end goal of providing a national network of ports.
Meanwhile, the Metropolitan Waterworks and Sewerage System (MWSS) issued the remaining permit required for the Wawa Bulk Water Supply Project of Wawa JV Co., a joint venture the between Razon’s Prime Infra and businessman Oscar Violago’s San Lorenzo Ruiz Builders Group.
The final approval of the remaining documents, which authorized MWSS administrator Emmanuel Salamat to sign on behalf of the agency, materialized during the Board of Trustees meeting last Thursday.
The approval came after the favorable opinion given by the Office of the Government Corporate Counsel earlier this month on the remaining conditions precedent for the project to start its development work.
Wawa JV aims to supply 80 million liters per day (MLD) of water in 2021 and over 500 MLD by 2025.
Last August, an offtake agreement was signed by Manila Water Co. and the JV.