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© 2008 Cascal NV
Subic - Philippines
History - This pioneering project for the privatisation of both the water supply and sewerage services for Subic Bay Freeport and Olongapo City in the Phillipines was won by Cascal and its local joint venture partner D.M. Consunji Inc.
Partnership - A local joint venture company, Subic Water & Sewerage Company Inc. (Subicwater), was established together with the Subic Bay Metropolitan Authority (SBMA) and the Olongapo City Government to undertake the project by means of a thirty year concession contract.
Subicwater took over the operation and maintenance of the existing assets and is undertaking extensive refurbishment work, construction of a new treatment works, pipework rehabilitation and the extension of water distribution and sewerage networks.
Subicwater arranged non-recourse project finance - the first for any project in the Philippines. No government guarantees were required.
All existing Filipino employees were retained by the new company. Expert construction and operations advice is available from Cascal and its joint venture partner.
Links between private and public sector agencies have been strengthened as a result of the concession.
Subic Bay Freeport and Olongapo City are located approximately eighty kilometres northwest of Metro Manila. The freeport is the site of a former US naval base. Growth in demand for water from an increasing population and industrial development has created a need for investment in new infrastructure.
Subic Concession Project - Subicwater was the first privatised water and sewerage system in the Phillipines, and is paving the way for environmental and ecological benefits in this extraordinarily beautiful part of the world.
Subicwater took over the operation and maintenance of the existing assets serving these areas and is investing in new installations and the refurbishment of existing facilities.
Emphasis has been placed on operational efficiency. A high priority has been given to standards of customer service and the installation of a modern billing system.
SBMA has appointed an independent Regulatory Board to monitor the quality of service and oversee the prioritisation of capital expenditure.
Subicwater has to improve the treatment and disposal of effluent through a two-phase programme. Initially, low-tech solutions are introduced, a second phase introduces an advanced wastewater treatment system followed by expansion of the sewerage network.
At the end of the concession period ownership of an improved, efficient, and well-maintained water supply and treatment facility will revert to SBMA and Olongapo City.
