Ormoc Water Supply System Project

Pre-Market Sounding
DISCLAIMER: The information contained in this document is provided to the public in relation to development of the Project pursuant to Ordinance No. 2019-10 or The
Ormoc City Public-Private Partnership (PPP) Code. While the drafters of this document exerted their best effort to provide a fair and comprehensive description of the
Project, this document does not purport to be all-inclusive or to contain all the information that a prospective participant may consider material or desirable in making
its decision to participate in the tender. The City Government of Ormoc and PPP Center make no undertaking, assurance, representation or warranty and shall have no
liability to any person, including any bidder, under any law, statute, rule or regulation, principle of restitution or unjust enrichment or any other for any loss, damage,
cost or expense, which may arise from or be incurred or suffered on account of anything contained in the document. The City may, in its absolute discretion, but
without being under any obligation to do so, update, amend or supplement the information, assessment or assumptions contained in the document. The issuance of
the document does not imply that the City is bound to select a bidder or to appoint a selected bidder or project proponent, as the case may be, for the Project
Ormoc City

ORMOC
Metro Manila

1½ hour flight
• Located in the Eastern Visayas
region (Region 8)

Cebu
Nearby metropolis:
115 kms
• 555 kms. from Manila
• 115 kms. from Cebu
Map of Leyte
Davao • 240 kms. from Davao
240 kms
Ormoc City

Political Boundaries
North
KANANGA

West
M ATA G - O B
PA L O M P O N
MERIDA

East
JARO
DAGAMI
BURAUEN

South
O R M O C B AY
ALBUERA
Investing in PPPs in Ormoc City

In the 2020 ranking of the Cities and Municipalities

Competitive Index, the City of Ormoc ranked 28th among
112 other component cities.

Pillar Score
Economic Dynamism 7.20
Government Efficiency 11.71
Infrastructure 8.25
Resiliency 16.58
Investing in PPPs in Ormoc City

Ormoc City scored 7.20 (rank 30th) and 11.71 (rank 25th) in terms of
economic dynamism and government efficiency.
Investing in PPPs
With PPP as one of the infrastructure delivery mechanisms
for economic resiliency, the PPP Center of the Philippines is
facilitating the expansion of PPP mode in the country.

COVID-19’s impact on Philippine economy

The Philippines’ growth prospect is underpinned by three

important policy actions:
- safe reopening of the economy
- full implementation of the recovery program
-9.5% - acceleration of the vaccination program
(2020)
Investing in PPPs

The PPP Center facilitates the implementation of the country’s PPP Program.
It serves as a central coordinating and monitoring agency for all PPP projects.

Advocate for POLICY

reforms to enhance
Provide technical
assistance in enabling environment
PROJECTS
(development to
implementation) Conduct CAPACITY
BUILDING activities to
improve skills of agencies
Investing in PPPs
as of 30 April 2021

183 63 AWARDED PROJECTS

PROJECTS IN THE PIPELINE
PHP 1,334 Billion PHP 7,254 Billion
(USD 27.6 Billion) (USD 149.9 Billion)*
No. PhP (bn) No. PhP (bn)
National 131 1,215 National 44 7,202
Local 52 119 Local 19 52

*Total cost does not include projects undergoing studies and

with costs that are yet to be finalized
Investing in PPPs
National PPPs (44) Local PPPs (19)

Water supply and Solid waste

Transportation
4 sanitation
3 management
31 (airport, road, rail,
port, and terminal) Vertical infrastructure /
5 government property
development
Health (e.g. university properties, public
6 (hospital facilities market, and slaughterhouse)
and services)
Emerging sectors in local PPPs
Vertical infrastructure /
5 Transportation
government property 2 (e.g. port, road, bus rapid 3 Tourism
development transport [BRT], and terminal)

2 IT system Health
2 IT system (hospital facilities
and services)

Renewable energy
Investing in PPPs
Sustainable Development Goal

Vision for Water PPPs:

The PPP Center hopes that a successfully
awarded PPP project at the local level in the
water and sanitation sector be achieved by
2022.
Situationer: water supply system in Ormoc City
Ormoc City’s water supply is currently serviced by ORWASA through Level II and Level III systems

Consumers and barangays

Total no. of 25,044
consumers connections
Commercial 1,015
Residential 24,029
Total no. of 110 barangays
barangays served
Level III 82
Level II 28
(communal)
Situationer: water supply system in Ormoc City
Need for further improvements in the
delivery of water supply
While the existing investments and efforts of
the City, through ORWASA, successfully
jumpstarted the water system, there are still
challenges needing long-term solution:
 Only around 61.5% of the population are
connected in the Level III piped network
 Service water is not available and not
reliable in certain areas 24/7
 Reported non-revenue water is indicative
of leakages in the pipe network
 Certain segment of served constituents still
buy drinking water from water refilling
stations

There are 2 other water supply providers

observed to be providing to Ormoc
households. There are also barangay-level
water systems needing significant
*A snapshot of the distribution line *The solid contact clarifier was *Snapshot of the water tank in one of the improvements.
as the ORWASA copes with the damaged during the 2017 barangays in Ormoc. Around 90% of
growing demand while maintaining earthquake and was not functional households in certain barangays connect
the ageing pipe network ever since. to communal water sources.
Situationer: water supply system in Ormoc City
Based on the 2015 PSA Census, Ormoc has a total population of 215,031 and an
assumed growth rate of 2.26%. By 2040, our population is expected to grow to around
375,000 or roughly 87,000 households.

Ormoc City Population 450,000

418,376
400,000
Income Class : First Class City
350,000 374,090
Population : 215,031
(2015 PSA Census) : 314,412 334,492
300,000
(2032 Projection) : 2.26% 239,120 299,086
250,000 215,031 267,427
Population Growth Rate
200,000
Households Population : 214,464
(2015 PSA Census) : 313,607 191,200
150,000
(2032 Projection) 2010 2015 2020 2025 2030 2035 2040 2045
Situationer: water supply system in Ormoc City
Existing water supply of the current system is not enough
By year 2045, Ormoc City is projected to have a water deficit of around 26 MLD, which highlights the
importance of developing an alternative, dependable and sustainable source of water.

 Current water sources consist

of 28 deep wells, 13 springs,
and surface water from Ahag
River
 The observed decline of flow
rate of the deep wells and
springs, coupled with negative
impact of liquefaction,
necessitates the development
of new water sources
 Dependable flow rate of Ahag
River is around 30 MLD which
means it may be further
improved to maximize its water
source potential

*Based on unconstrained demand projections - 95% of the population is targeted to be served by 2030 and 100% from 2035 onwards.
Ormoc Water Supply System Project
The City Government of Ormoc, with assistance from the PPP Center, is seeking for a
partner to undertake the Public-Private Partnership for the design, financing,
construction, operation and maintenance of a water supply system.

• Service coverage: Availability of Level III service connection to

all 110 barangays

• Water quality: Water quality that meets the Philippine

National Standard for Drinking Water (PNSDW)

• Quantity and reliability: Uninterrupted supply, 24 hours a day,

7 days a week

• Pressure: At least 3-meter water pressure at the farthest point

• Disaster resilient: Inclusion of solutions to address or mitigate

geohazard risks
Ormoc Water Supply System Project
The Ormoc Water Supply System PPP Project aims to provide a
comprehensive water supply system to meet the demand for good quality
and sufficient water supply, and an operation capable of providing Level III
service to its service area on a 24/7 basis, i.e. continuous water service
without interruption.
*Ormoc City possible water sources

Development of new water sources and construction of raw water supply

facilities and its ancillary components, which shall include the reservoir and
new pipeline

Establishment of clarifier and filtration gallery to improve the quality of water

supply
*Ormoc City and PPP Center collaboration in developing
PPP projects of the City in September 2019
Upgrading of the 28 service areas with Level II systems to Level III system

Operations and maintenance (O&M) of the entire water supply system

*PDMF Support was granted for the Project. The group of
covered by the Project
OICDI, EDCOP, and UPLBFI was engaged as transaction
advisers
Ormoc Water Supply System Project

Project title Ormoc Water Supply System Project

Legal framework Ormoc City PPP Code of 2019 (Ordinance No. 19-2019)
Mode Solicited Mode
Finance, design, construct, operate and maintain Level III water supply
system, including raw water management, treatment and distribution, in the
Project scope
110 barangays of Ormoc City (75% coverage by 2025 and 100% coverage by
2045)
Indicative project cost Php 5.77 Billion or Php 7.36 Billion (nominal)
Concession period 40 years (inclusive of estimated 3-year construction period)
Proposed PPP structure Contractual Joint Venture
Repayment scheme Collection of water tariff
 Delivery of bulk water;
Private sector partner
 Distribution of treated water to consumers; and
(PSP) responsibilities
 Operation and maintenance of the facilities
Proposed bid parameter Lowest starting water tariff
*Bid parameter is indicative only. PPP-SC will prescribe the bid parameter during the bidding.
Water sources
Lake Danao Panilahan River

Coordinates 11° 3'53.87"N and Coordinates 11° 0'41.03"N and

124°42'16.00"E 124°38'46.03"E

Ahag River Pagsanga-an River

Potential Water Sources and Capacities (Dependable Flow at 80% of the time)

 The main water source of the existing water system is Ahag River
 The Philippine Fault intersects specific sections of Lake Danao. It
is also considered as Protected Area with certain limitations
under the law
 The Proponent has the option to identify the most suitable water Coordinates 11° 1'46.13"N and Coordinates 11° 7'15.44"N and
source/s which will meet the project requirements 124°37'20.12"E 124°31'25.05"E
 Optimal Technical Scheme

Scheme 4
Proposed water Pagsanga-an River
source Ahag River
Potential capacity 894.91
(MLD)
Target service 110
area Barangays

DISCLAIMER: The information contained in this document is provided to the public in relation to development of the Project pursuant to Ordinance No. 2019-10 or The
Ormoc City Public-Private Partnership (PPP) Code. While the drafters of this document exerted their best effort to provide a fair and comprehensive description of the
Project, this document does not purport to be all-inclusive or to contain all the information that a prospective participant may consider material or desirable in making
its decision to participate in the tender. The City Government of Ormoc and PPP Center make no undertaking, assurance, representation or warranty and shall have no
liability to any person, including any bidder, under any law, statute, rule or regulation, principle of restitution or unjust enrichment or any other for any loss, damage,
cost or expense, which may arise from or be incurred or suffered on account of anything contained in the document. The City may, in its absolute discretion, but
without being under any obligation to do so, update, amend or supplement the information, assessment or assumptions contained in the document. The issuance of
the document does not imply that the City is bound to select a bidder or to appoint a selected bidder or project proponent, as the case may be, for the Project
Setting standards and operational targets
There will be minimum design standards and key performance indicators set in the PPP contract for
compliance of the PSP
Service coverage targets
450,000

400,000

350,000

300,000

250,000

200,000

150,000
2020 2025 2030 2035 2040 2045
Served Population Served Households

Items 2020 2025 2030 2035 2040 2045

Served population (%) 68% 75% 80% 90% 95% 100%
Projected demand (MLD) 31 46 52 63 71 79
Setting standards and operational targets
Proposed Minimum Performance Standards and Specifications (MPSS) for the PSP:

General Supply safe, sustainable and clean water to all 110 barangays of Ormoc City
requirements

Service coverage Availability of Level III service connection to all 110 barangays

Raw water supply In line with the direction of the Philippine Water Supply and Sanitation Master Plan, the
development identified raw water supply that will be developed should be sustainable, with surface water as
the priority development.

Water quality Water quality that meets the Philippine National Standard for Drinking Water (PNSDW) of 2017

Quantity and Uninterrupted supply, 24 hours a day, 7 days a week

reliability

Working pressure At least 3-meter water pressure at the farthest point

Setting standards and operational targets
Civil / architectural All buildings shall be designed based on the latest National Building Code of the Philippines
works (NBCP) and the National Structural Code of the Philippines (NSCP). All concrete reservoirs shall
be designed based on ACI 350 and all its related literatures.
Pipeline works Design / sizing of pipeline shall be based on Rural Water Supply Vol. 1 Design Manual of the Local
Water Utilities Administration (LWUA).
Water treatment Size of the Water Treatment Facility shall be based on the ultimate supply of the system by end of
facility the design period.

It shall be able to produce treated water that conforms to the requirements of the Philippine
National Standard for Drinking Water of 2017, considering the quality of the raw water.

Mechanical works All mechanical equipment shall conform to the Philippine Mechanical Code of 2012 and all other
pertinent literature.

Electrical works The electrical design must be in accordance with the latest edition of the Philippine Electrical
Code (PEC).

The MPSS shall be finalized during the tender of the Project and form part of the Bid Documents.
Project tender timeline

Cooperation

40 years from contract

Procurement and Award execution (inclusive of
construction period assumed
September 2021 – February to be 3 years)
Approval 2022
• Publication of Invitation to Bid
Development August 2021 – 31 August 2021
• Investor’s Conference by
September 1, 2021
July 2020 – July 2021 • Bid Conference – October 2021
• Bid Submission – February
2022
Preparation of
Feasibility Study
completed
For further information, please visit:
www.ppp.gov.ph
For inquiries, kindly e-mail:
Atty. Lerma L. Advincula
Director IV, Project Development Service
[email protected]

Kristina Azela B. Diza

PDO IV, Project Development Service
PPPCenter.Philippines
[email protected]
@PPP_Ph
Atty. Joy Romero
City Legal Officer, Ormoc City Public-private-partnership-
Center-of-the-Philippines
[email protected]
PPPPinas