MANILA, Philippines – The joint venture of Aboitiz Equity Ventures Inc. (AEV) and J.V. Angeles Construction Corporation (JVACC) bagged a bulk water supply project in Davao.
This will be AEV’s first venture into bulk water distribution. The project will be the country’s first bulk water system with a treatment facility fully powered by renewable energy.
JVACC received the Notice of Award (NoA) from the Davao City Water District (DCWD) for the financing, design, construction and operations of the Tamugan Surface Water Development Project, AEV announced in a disclosure to the Philippine Stock Exchange Monday, June 23.
“The JVACC-AEV Consortium will have to comply with the requirements in the NoA before the Joint Venture Agreement with DCWD can be executed,” AEV said.
In May 2013, AEV entered into a memorandum of understanding with JVACC to supply treated water to DCWD, and to construct a treatment facility powered by its own renewable energy source and a conveyance system needed to deliver treated water to numerous DCWD delivery points.
JVACC earlier submitted a proposal to DWCD for the supply of 300 million liters per day of potable water. It then tapped Hedcor Inc., an affiliate of AEV, to provide the necessary technical and operational expertise for the hydroelectric component of the project.
Hedcor is a pioneer proponent in the generation of clean and renewable power and currently produces 155 megawatts (MW) through 19 run-of-river hydroelectric plants across the country.
The final structure of the joint venture company is being finalized by the parties.
AEV, with core businesses in power generation, banking and food manufacturing, is looking at investment opportunities that it can transform into sizeable businesses. It recently expanded into development of real estate and industrial estate as well as infrastructure.
AEV, in joint venture with Ayala Corporation, early this month submitted the highest bid for the P35-billion Cavite-Laguna Expressway (Calax) project. Calax is expected to be formally awarded this week.
JVACC is one of the leading contractors in the Philippines with over 48 years of experience in the construction and development of water-related infrastructure. Its portfolio includes the construction of Hedcor-Sibulan’s run-of-river hydro power electric project, which provides 42 MW of Davao City’s power supply. – Rappler.com
Water treatment facility photo from Shutterstock
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