The Prime-Alloy Water Consortium, comprised of Prime Water Infrastructure Corp., MTD Capital BHD and Biwater International Ltd., is bidding for the USD500 million Bulacan Bulk Water Supply Project (BBWSP) of the Metropolitan Waterworks and Sewerage System (MWSS). BBWSP is intended to supply treated bulk water through the construction, operation, and maintenance of abstraction, treatment, and conveyance facilities of treated bulk water supply to the different water districts of Bulacan Province. The Project is being procured through competitive public bidding under the Philippine BOT Law using a performance or output-based approach. The private sector proponent will undertake the financing, detailed design and construction, and maintenance of the bulk water supply system under a 32-year concession period.
CFP was engaged by the Prime-Alloy Water Consortium to be its lead transaction advisor for BBWSP. After helping the consortium successfully pass the pre-qualification stage, CFP is presently assisting in evaluating the risk profile and investment potential of BBWSP so that the consortium can reach a “Go” or “No Go” decision on BBWSP. This will involve a review of the bid/tender documents and early preparation of a risk-based financial model and risk matrix. CFP will also help identify potential deal breakers and propose alternative commercial terms for the consideration of MWSS, as needed, to arrive at a more reasonable sharing of risks. If the consortium decides to bid for the project, CFP will help in preparing the technical and financial proposals for submission to MWSS.
