Lessons Cebu can learn from Davao in water security

Local

A 12-YEAR public-private partnership that helped secure Davao City's water supply could offer valuable lessons for Cebu as the province grapples with a growing water deficit that threatens its long-term competitiveness.

Business leaders are urging policymakers to explore public-private partnerships (PPPs), pointing to Davao City's experience as proof that private capital can help accelerate critical water infrastructure projects.

The call came during the Investment & Entrepreneurship Summit of Cebu Business Month on Thursday, June 4, where water security emerged as one of the most pressing concerns for the province's long-term economic growth and investment competitiveness.

Eduardo "Dudes" Aboitiz, vice president and head of the water business at Aboitiz InfraCapital (AIC), cited the company's partnership with the Davao City Water District as an example of how government and private firms can work together to improve water supply and service delivery.

While each locality faces different challenges, Aboitiz said the Davao experience demonstrates the potential of PPPs in addressing infrastructure gaps.

"Public-private partnerships represent a very practical model, especially for capital-intensive projects. Cebu, Davao and Metro Manila already have proven examples that show how PPPs can work," he said.

The discussion comes as Metro Cebu faces a significant water supply deficit.

According to Cebu City Mayor Nestor Archival, who was present during Thursday's event, the metropolitan area currently requires around 600,000 cubic meters of water daily but existing providers can supply only about half that amount.

Around 100,000 cubic meters are also lost each day due to inefficiencies in the system.

But for business leaders, the challenge extends beyond ensuring access to water.

They warn that inadequate water infrastructure could eventually constrain urban expansion, reduce economic productivity and weaken Cebu's attractiveness to investors.

Aboitiz said water security must be viewed alongside other infrastructure concerns such as traffic congestion, flood control and waste management.

"If left unaddressed, these challenges may affect the quality of life of Cebuanos, slow urban development, and risk Cebu's competitiveness, including its ability to attract investments," he said.

The executive, in turn, pointed to Davao City's bulk water supply project as proof that large-scale infrastructure partnerships can help address chronic water shortages.

The project, developed jointly by AIC and the Davao City Water District, began as a proposal in 2012 to tap the Tamugan River as an alternative to the city's heavy reliance on groundwater.

Construction started in 2019, while commercial operations commenced in 2024.

Today, the project supplies about 300 million liters of potable water daily to more than one million residents, accounting for roughly 80 percent of the Davao City Water District's total supply.

According to Aboitiz, the project has expanded water coverage to 96 percent of customers while providing uninterrupted 24/7 service.

The transformation, he said, has produced tangible economic and social benefits.

For example, residents no longer need to wake up in the middle of the night to store water for household use, while small business owners can operate without relying on costly water deliveries or spending hours sourcing water elsewhere.

"The positive impact of this PPP on Davao City and on the quality of life of its residents is very evident," Aboitiz said.

But he stressed that replicating Davao's success would require more than simply attracting private capital.

The executive identified four factors that enabled the Davao project to move forward: long-term planning, stable leadership and policy, and investment commitments from both the public and private sectors.

"Building Cebu's water security and infrastructure resilience cannot be done overnight," Aboitiz said. "It requires long-term planning and foresight, policy consistency, regulatory predictability, political will, and strong cooperation between the public and private sectors."(RBE)