New Centennial

Water Source -

Kaliwa Dam Project

Proponent & Advisors

• Project background

• Project objectives and key outputs

• PPP agreement

• Technical Scope

• Investment Opportunities

• Procurement

Presentation Outline

• Caters to 15 million people • Operated and maintained

by 2 Concessionaires up to 2037 – Maynilad Water

Services (MWSI) provides to 8.3 million customers in the West Zone

– Manila Water Company (MWCI) provides to 6.8 million customers in the East Zone

Metro Manila’s Water Supply

New Centennial Water Source

• Ensure water security in Metro Manila • Initially increase supply with 600 MLD (Kaliwa Dam) • Add additional 1,800 MLD in the longer term (Laiban Dam)

• The NCWS Project has been subject to extensive studies.

• NEDA Board approved the Kaliwa Dam Project on 29 May 2014.

• The project involves:

– 600 MLD Kaliwa Dam, the intake facilities and other appurtenant facilities; and

– 2,400 MLD Water Conveyance Tunnel.

• MWSI and MWCI will build the WTPs and connect these with the Water Conveyance Tunnel.

New Centennial Water Source - Kaliwa Dam

NCWS Project - Location

LAIBAN DAM

WTP

WTP

KALIWA DAM

1800 MLD

600 MLD

Water conveyance tunnel

2400 MLD Water Conveyance

Tunnel

Kaliwa dam and reservoir

WTPs and transmission

pipelines

• The project will be delivered through a PPP scheme: – Mobilize private finance to accelerate implementation – Achieve value for money through innovation / creative

competition

• BT Contract (under BOT-IRR 2012): – Design, Build and Finance of the Dam and Conveyance

Tunnel – Project proponent to pre-finance of land acquisition, ROW

and resettlement compensation, and social and environmental impact mitigation costs

– Transfer of operational assets upon completion of construction

– Payment to project proponent: Amortization for 25 years

PPP Approach

Technical Scope: Kaliwa Dam

Reference Design Parameters of Kaliwa Dam

Dam Height 62 meters

Full Supply Level (FSL) 160 meters

Hydrology (Capacity) 600 Million Liters per Day

Design Concrete faced rock dam

Reservoir (Gross Capacity) 57 million cubic meters

Spillway 10,000 years flood

Target commissioning (Dam and Tunnel) 2020

Technical Scope – Catchment

Land acquisition, ROW & resettlement compensation, and social & environmental mitigation costs

• MWSS to initiate the process, in accordance with R.A. 8974 • Project Proponent to pre-finance the process

PPP Scope – Water Conveyance Tunnel

Design, Build and Finance of the Water Conveyance Tunnel • 27.7 kilometer tunnel from Kaliwa Dam to the off-take point

for the Water Treatment Plants in Pantay and Teresa • TBM bored tunnel ~ Ø 4m, Design Life: 100 Years

PPP Scope – Water Conveyance Tunnel

Kaliwa to Teresa and Pantay completely underground in Kinabuan/Maybangain geological formations

• Under the BT contract the proponent will invest in / finance:

• Investments to be recovered from Amortization Payments during a 25 years BT contract

Investment Opportunity

Component Investment indication

(in Php Billions)

Investment indication (in US$

million) 1 Kaliwa Dam 4.0 92

2 Water Conveyance Structure

8.2 187

3 Land Acquisition & Resettlement Costs

2.2 50

Total PhP 14.4 $ 328

Payment Mechanism

BT Agreement MWSS

MWSI

MWCI

Project Proponent

Amortization Payments

Specific Account

Water Security Charge

• The cost of the project will ultimately be passed on to the consumers, following the users pay principle.

• Specific Account will be the source of funds for amortization payments by MWSS to the Project Proponent.

Water Security Charge

MOA (MWSS, MWCI & MWSI)

WSC Specific Account

Recovery & Payment of the APs

Reserve: 2 years of prior WSC collection

1

Current year collection Quarterly APs 2

MWSS commits to replenish any

shortfall of funds

4

rate rebasing 3

• BOT Law (R.A. 7718) • 2- step investor selection (pre-qualification and submission of

technical and financial bids) • Proponent should have extensive (EPC) experience in design and

construction of dams (height > 55m) and tunnel boring • Proponent should be able to finance the project for 25 years • Procurement Planning

Procurement

Activities Target Date

Invitation to Pre-Qualify June 2014

Prequalification Submission August 2014

Announcement of Pre-Qualified Bidders & Issuance of ITB September 2014

Conduct Pre-Bid Conference October 2014

Bid Submissions ( deadline) December 2014

Issuance of Notice of Awards January 2015

Signing of Agreement / Contract February 2015

Financial Close August 2015

Thank you!