PROJECT PREPARATION AND TRANSACTION ADVISORY FOR
ORMOC CITY WATER SUPPLY SYSTEM PROJECT
(OCWSS: 2020 - 2022)


Client: Public-Private Partnership (PPP) Center of the Philippines
Funding Source: Asian Development Bank (ADB)
Partners: Engineering and Development Corporation of the Philippines (EDCOP) and University of the Philippines Los Baños Foundation, Inc. (UPLBFI)
Contract duration: 2020 - 2022
Theme: Clean water and sanitation (SDG 6); project preparation and transaction advisory

 

PROJ 2020 OCWSS

The Ormoc City Water Supply System Project aims to provide a comprehensive water supply system to meet the demand for good quality and sufficient water supply in the city, and an operation capable of providing continuous Level 3 water service to 110 barangays. The city’s current sources for domestic water face pressures from a growing population and a projected temperature increase during dry months by year 2030. A 2018 business case study had indicated that said water sources may be augmented through additional bulk water supply to be sourced from Lake Danao in Leyte province. (The business case study was conducted under the Philippine Water Supply and Sanitation Master Plan (PWSSMP) Project of the National Economic Development Authority or NEDA, which is part of OIDCI’s project portfolio.)

This consulting assignment covers project preparation and transaction support services. Its main objectives are 1) determining the viability of the project; 2) determining the most appropriate implementation strategy; and 3) providing assistance and advisory services until financial close. Hence, the assignment includes development of a feasibility study and project structuring. The feasibility study covers the assessment of potential water sources for the water system, and assessment of hydropower generation potential from the identified water sources, among others; it includes the conduct of an environmental impact study, social risk and resettlement study, and economic and financial analysis. Project structuring covers the conduct of market sounding activities.

The Philippine government utilized the ADB-assisted Project Development and Monitoring Facility (PDMF) for this project. The PDMF is a revolving fund for engaging consultants for the development of PPP projects of various implementing agencies in the country.

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