Joint Venture Agreement for New Clark City Smart Water Utility

Joint Venture Agreement for New Clark City Smart Water Utility

Joint Venture Agreement for New Clark City Smart Water Utility

The FINANCIAL -- The consortium of Prime Water Infrastructure Corporation, Prime Assets Ventures, Inc., (PAVI), MGS Construction, Inc., and Israel's TAHAL Group, a global provider of sustainable infrastructure, signed a joint venture agreement with the Philippines’ Bases Conversion and Development Authority (BCDA) to deliver next generation smart water and waste water facilities for New Clark City.

The Asian Development Bank (ADB) acted as transaction advisor to BCDA on the project.

 

On 12 November 2018, a consortium comprising Prime Water, PAVI, MGS Construction, and TAHAL Group submitted a bid of 9.45 Philippine pesos (Php) per cubic meter to win the tender. The proposed Php9.45 ($0.18) per cubic meter rate shall apply for the water supply only. The same amount will be charged for wastewater services, resulting in a total tariff of Php18.90 ($0.36) per cubic meter for both services over the first five years of the 30-year joint venture period.

The winning bid for New Clark City is viewed as highly competitive when compared against rates for cities in the Philippines and other parts of Southeast Asia as well as globally, and is expected to attract leading businesses and investors to the city.

New Clark City, located within the Clark Special Economic Zone, is envisioned to become the country’s first smart, green, and sustainable metropolis. Phase 1A, which covers 60 hectares, involves the construction of the National Government Administrative Center, including a world-class sports complex to be used when the Philippines hosts the Southeast Asian Games in 2019.

 

 


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