SMC IS PROPOSING TO BUILD A WATER SOURCE PROJECT | Marvin Germo

SMC IS PROPOSING TO BUILD A WATER SOURCE PROJECT

By: Marvin Germo | May 22, 2019

SMC’s Plan

San Miguel Corporation (SMC) is thinking to submit a proposal that will start a water resource project. According to the firm, the water project will provide up to 3,800 million liters per day (MLD) priced at a lower cost than the offer of the bulk water project in Bulacan. From this day, the proposal will be submitted in two weeks. This has been reported during the annual stockholder’s meeting of the conglomerate firm. Since the water crisis is continuously experienced by a lot of residents in the country, especially those in Metro Manila, is it time someone steps up to help the nation? Is it time for SMC to take their business to the next level and start the water source project for the betterment of the country?

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The Water Source Project Cost

The proposal would include the cost of the water source project which is at about P35 billion, a private fund that will be used by SMC. As stated by the firm, the project would take 5 years to build and since this is still a proposal, they didn’t mention the place where it will be built. The water shortage in Metro Manila is driving the firm to re-imagine the excess supply from Bulacan to be delivered here in the Metro. As what we all know, Angat Dam is used as the main source of potable water here in the country but this will not be used by the SMC as per its proposal. The project will deliver raw water to the residents. The firm believes they can sell the water from the source project for as low as P5 per cubic meter, which is considered a really cheap one.

SMC’s Most Significant Project

As disclosed by the firm, this will be the most significant project for them if this will be pushed through. This is after its winning offer last December 2015 to make a bulk water project that would supply water to Bulacan area in 30 years. This proposal, together with SMC’s Korean partner, to deliver water at P8.50 per cubic meter outperforms the best second offer of P9.75 per cubic meter. This will make the project the first ever bulk water project under the public-private partnership of the government. The bulk water project in Bulacan has started commencing early this year. The project aims to give potable water to 4 municipalities and is being undertaken by Luzon Clean Water Development Corporation, SMC’s unit and Korean company K-Water Resources Corporation.

The Water Crisis

About 10,000 households in Metro Manila are affected by the water crisis since March 6 of this year. La Mesa Dam has reached 68.93 masl on March 11 and this was considered as the below its critical level of 69 masl. The crisis is due to EL Nino the whole country is experiencing right now. The proposal of SMC will surely help us solve this issue in the Metro. And aside from the water source project proposal, SMC is set to expand its port, refinery, and terminal this 2019 using its capital expenditure of at least $1 billion. The firm is expected to spend over this value as it continues to aim for business expansion.

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