Maynilad Water Services and Manila Water Company have signed the contract to develop the Sumag River Diversion Project, the former said in a statement on 26 April.

"Maynilad and Manila Water will share the cost of the project, which is expected to reach PHP 717 million (USD 16M)," Maynilad said.

Cavite Ideal International Construction and Development Corp. has been tapped as contractor for the project, the utility added.

Maynilad explained that the project will involve construction of a 600m tunnel at 2.5m diameter from Sumag River in General Nakar, Quezon Province, to the Umirat-Angat Transbasin Tunnel in Angat, Bulacan.

"Once completed, the tunnel will augment the inflow of water to Angat Dam by 188 million litres per day," Maynilad said.

"The additional water supply will help address the increasing water requirements of residents in Metro Manila and nearby areas," it added.

Cherubim O. Mojica, Maynilad’s head for corporate communications, said project construction has started. "Construction period is 18 months starting from the issuance of notice to proceed, which was on 15 April," Mojica said.

The official explained that the project is one of MWSS’ new water source projects.

It will be implemented by the two concessionaires through the Common Purpose Facility (CPF) office – which is composed of representatives from two utilities. "Maynilad and Manila Water, through CPF office, have been undertaking joint projects since 1997," Mojica said.

As the west zone concessionaire, Maynilad provides water and wastewater services to residents in most of Manila, parts of Quezon and Makati cities, the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas and Malabon in Metro Manila. Its franchise area also covers the cities of Bacoor and Imus and municipalities of Kawit, Noveleta and Rosario in Cavite province.

Meanwhile, Manila Water provides water and wastewater services to the east zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina; parts of Manila and Quezon City, as well as some areas in Rizal province.

Metro Pacific Investments Corp. (MPIC) and DMCI Holdings, Inc. hold 52.8 per cent and 25.24 per cent stakes, respectively, in Maynilad. Japanese firm Marubeni Corp. holds a 20 per cent stake, while the balance is held by other shareholders.

MPIC is the local unit of Hong Kong-based First Pacific Company.