Business tycoons have shown interest to vie for the 112 new water rights granted by the Department of Environment and Natural Resources (DENR) to improve the impounding capacities of the country to store rainwater, which otherwise falls just to the seas and oceans.
Businessmen who have expressed interest in developing large rainwater catchments to augment the country’s freshwater supplies for domestic use and irrigation include San Miguel’s Ramon S. Ang; Enrique Razon Jr., who now owns Manila Water Co. Inc; Manny Villar, who acquired water concessions nationwide over the past decade, Luicio Tan, Manny Pangilinan and Sabin Aboitiz (close friend of President Marcos) who got into power, banking and other developments.
RSA is emerging as a potential contender in the race to acquire water rights newly-opened for development by the government, reported business blog site Bilyonaryo.
Ang’s highly-diversified San Miguel Corp. (tollways and skyways, food and beverage– including bottled water, energy, power, gasoline, agriculture and more) is interested in water development because “stable water supply is critical and it is detrimental for the economy to continue experiencing water shortages,” Ang told Bilyonaryo.
San Miguel is scouting for new water developments to expand its unit, Luzon Clean Water Development Corp., which is close to completing its bulk water project in Bulacan.
The Department of Natural Environment Resources last year opened 135 water rights to develop a reliable supply, potentially increasing the nation’s irrigation agency’s revenue by P1.2 billion annually.
In February, the DENR announced plans to add 112 more water rights for public-private investment in water projects.
Lucio Tan has also shown interest in the projects, along with Ang’s newfound ally, Manuel V. Pangilinan, who leads Maynilad Water.
The government’s privatization aims to efficiently utilize the country’s water rights and develop a stable supply, which is feeling the strain of a growing population, according to DENR Undersecretary Carlo P. David, a geologist and the chief architect of the initiative.
He said these projects can generate electricity and irrigate farmlands.
The Philippines, with its rainy season and watersheds, has more than sufficient supply for its growing population, according to David.
However, the country only impounds 68 cubic meters of water per person, compared to Thailand’s 680 cubic meters and Vietnam’s 1,100 cubic meters.
San Miguel’s Luzon Clean Water is in the third stage of its Bulacan bulk water project, which, once completed, will supply more than 350,000 households in the province by early 2025.
The project will cover Baliwag, Norzagaray, Hagonoy, Pandi, San Ildefonso, San Miguel, and San Rafael.
Luzon Clean Water currently supplies water to 13 water districts in Bulacan, serving 220,000 households in cities and towns, including Balagtas, Bocaue, Marilao, City of Meycauayan, Obando, City of San Jose Del Monte, Bulakan, Calumpit, Guiguinto, City of Malolos, Paombong, Plaridel, and Sta. Maria.
It boasts the lowest bulk water charge in the country at P9.66 per cubic meter or less than 1 centavo per liter, according to San Miguel’s website.
Ang is no stranger to impounding water, having previously undertaken a similar project to collect rainwater to enhance supply rather than allowing it to dissipate into the sea.
“We just let rainwater flow into the ocean, and then during the dry season, the supply is insufficient,” Ang said. “Impounding water is a very practical and effective way to boost supply.”
Storing water enabled Luzon Clean Water to provide excess supply to Metro Manila’s east zone in 2019 when the area faced a shortage, said Ang.
The DENR water projects pique Ang’s interest because he said they help farmers and residential areas and boost power supply.
“We plan to study these projects and identify ones that make sense for us,” Ang said. “We want projects that will have a high positive impact on communities.”
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