SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) and Subic Water and Sewerage Co., Inc. (Subicwater) have extended the franchise agreement (FA) for the operation of the water supply and sewerage systems here and in Olongapo City for another 20 years.

The third amendment to the franchise agreement and the fourth amendment to the SBMA-Subicwater Lease Agreement were signed yesterday, March 20, effectively extending Subicwater’s franchise term until March 31, 2047.

The water firm began its operations in April 1997.

SBMA Chairman and Administrator Eduardo Jose L. Aliño and Subicwater Chairman Engr. Apollo C. Tiglao signed the agreements, with Olongapo City Mayor Rolen Paulino Jr. and Subicwater CEO and General Manager Benjamin Antonio III as witnesses.

Subicwater, which serves Olongapo City and the Subic Bay Freeport, is a consortium of Filipino construction firm D.M. Consunji Inc. (DMCI); Iv3 Aqua, a water and wastewater treatment company based in the USA; the City Government of Olongapo; SBMA; and Maynilad Water Services Inc. (Maynilad), the Philippines’ largest water concessionaire in terms of customer base.

Chairman Tiglao said that under the new amendment, Subicwater shall undertake measures to achieve 100 percent wastewater coverage, including combined sewerages and sanitation services, for Subic Bay Freeport and Olongapo City.

“This project would be more beneficial to Subicwater’s customers, as Olongapo City will now have wastewater services and sewer lines,” Tiglao said. 

Additionally, Subicwater can now expand its services to far-flung areas of the Subic Freeport, such as the Redondo Peninsula and Tipo area as a result of the amendment. 

Meanwhile, Mayor Paulino expressed his gratitude to the SBMA and Subicwater for the continued services of the water company. “We had really hoped Subicwater would expand their services. We have been clamoring for the wastewater coverage in Olongapo City,” he added.

Subicwater is Southeast Asia’s pioneer company which introduced the first public-private partnership (PPP), build-operate-and transfer (BOT) model in the water and wastewater services industry.

The company was formed in light of the impending water crisis in Olongapo City during the ’90s, and the growing commercial water requirements of the booming Subic Bay Freeport Zone. 