Subic Bay Water and Sewerage

active

In November of 1996, Subic Bay Water and Sewerage Company Inc. (Subicwater) was awarded a 25-year renewable concession contract to rehabilitate and operate a water and sewerage facility in Olongapo City and the Subic Bay Freeport with 20,765 and 1,317 connections, respectively. The industrial hub covered the former US naval base at Subic Bay, Olongapo City and the municipalities of Subic, Morong and Hermosa. Subicwater was a joint venture owned by Biwater International of the UK (30%) and the local DM Consunji Inc. (DMCI) (40%), along with state-owned companies Subic Bay Metropolitan Authority (20%), and Olongapo City Water District (10%). By 2002, UK-based Cascal BV had taken over the Biwater share. Cascal, in turn, was a 50-50 JV between Biwater and Nuon BV of Holland. DMCI and Biwater were to build infrastructure and improve existing water and sewerage facilities over a 10-year period. Biwater was to provide the joint venture with management consultancy services, technology transfer and specialist construction support. The capital investment program planned was P2.3 billion (US$87.6 million). In February 1997, Far East Bank and Trust company loaned P383 million (US$14.5 million) for the first phase of the project. ING Bank was co-arranger and co-lender of the loan. The World Bank assumed the development of the water resource portion of the project, which entailed more than P500 million (US$19 million) in capital expenditure. None None