Philippines BCDA Signs Joint Venture Agreement for New Clark City Smart Water Utility
January 4, 2019
The Consortium of Prim Water Infrastructure, Prime Assets Ventures, Inc., (PAVI), MGS Construction, Inc., and Israel's TAHAL Group, a global provider of sustainable infrastructure, today signed a joint venture agreement with the Philippines' Bases Conversion and Development Authority (BCDA) to deliver next generation smart water and waste water facilities for New Clark City, The Asian Development Bank (ADB) acted as transaction advisor to BCDA on the project.
'ADB is pleased to deliver a successful outcome for BCDA and support the development of the Philippines' greenest and smartest city," said the Head of ADB's Office of Public-Private Partnership (OPPP) Mr. Yoji Morishita. "The joint venture agreement establishes an innovative framework that equitably balances risks and returns, offering one of the lowest tariffs across the country while ensuring the availability of next generation smart water and wastewater services."
The winning bid for New Clark City is viewed as highly competitive when compared against rates for cities in the Philippines and other parts of Southeast Asia as well as globally, and is expected to attract leading business and investors to the city.
New Clark City, located within Clark Special Economic Zone, is envisioned to become the country's first smart, green, and sustainable metropolis. Phase 1A, which covers 60 hectares, involves the construction of the National Government Administrative Center, including a world-class sports complex to be used when the Philippines hosts the Southeast Asian Games in 2019.
ADB has been providing advisory services to BCDA since June 2017. The Services cover multiple sectors within New Clark City including water, power, gas distribution, and IT infrastructure. ADB's advisory services are, in turn, supported by the Urban Climate Change Resilience Trust Fund, a multi-donor fund aimed at reducing risks to the urban poor from climate change and natural disasters, through strategic planning of resilient infrastructure.
ADB has long supported PPPs and, in 2014, established OPPP to provide independent transactional advice and develop broader PPP knowledge and expertise in the region.