Aside from power, water security also a key investment concern in Cebu
CEBU CITY, Philippines — Beyond electricity costs and reliability, water security is emerging as another critical factor that could shape Cebu’s ability to attract investments and sustain economic growth.
Business leaders and government officials warned on Thursday that Cebu’s growing water shortage poses a long-term risk to the province’s competitiveness.
In turn, they are pushing for urgent infrastructure investments and stronger public-private collaboration.
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The issue took center stage during the Investment & Entrepreneurship Summit, one of the flagship events of this year’s Cebu Business Month (CBM), where stakeholders discussed the region’s economic outlook, energy and food security, retail development, support for micro, small, and medium enterprises (MSMEs), and water supply challenges.
Water losses
Concerns about water security come as authorities continue to monitor the possibility of another El Niño episode, which could further strain water resources across the island province.
Speaking before business executives and government officials, Cebu City Mayor Nestor Archival said Metro Cebu currently requires around 600,000 cubic meters, or 600 million liters, of water daily to meet demand.
Existing water providers, however, can collectively produce only about 300,000 cubic meters per day, leaving a significant supply gap.
Of that volume, roughly 100,000 cubic meters are lost through inefficiencies, translating to an estimated ₱6.5 million in losses daily, the mayor pointed out.
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“These are the issues that need to be addressed—and this is where entrepreneurs and investors can help us: finding solutions for garbage management and water supply efficiency,” Archival said.
For Cebu’s business community, the challenge extends beyond household consumption.
Industry leaders said inadequate water infrastructure could eventually affect urban expansion, reduce productivity, and discourage future investments.
Eduardo “Dudes” Aboitiz, vice president and head of the water business at Aboitiz InfraCapital (AIC), said Cebu’s infrastructure gaps—including water supply shortages—must be addressed to maintain the province’s growth trajectory.
“If left unaddressed, these challenges—traffic congestion, insufficient flood control and waste management infrastructure, and inadequate water supply—may affect the quality of life of Cebuanos, slow urban development, and risk Cebu’s competitiveness, including its ability to attract investments,” Aboitiz said.
READ: Deepening water crisis
PPPs seen as practical solution
To bridge the water supply gap, both government and private-sector representatives pointed to public-private partnerships (PPPs) as one of the most viable financing and implementation models for large-scale water projects.
“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,” Aboitiz said.
The AIC executive cited their partnership with the Davao City Water District as an example of how private capital and expertise can help accelerate critical infrastructure projects.
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But at the same time, he emphasized that improving Cebu’s water security would require more than funding alone.
“Building Cebu’s water security and infrastructure resilience cannot be done overnight. It requires long-term planning and foresight, policy consistency, regulatory predictability, political will, and strong cooperation between the public and private sectors,” Aboitiz explained.
Additionally, ensuring a stable and adequate water supply would unlock greater economic opportunities for Cebu, particularly as the province continues to position itself as a major investment and growth hub outside Metro Manila.
In the meantime, Aboitiz said AIC would support efforts by the Provincial Government of Cebu, the Regional Development Council, and the Department of Public Works and Highways to fast-track feasibility studies and construction of dams and river-based water projects.
“We believe these will deliver the single largest impact in addressing Cebu’s flooding and water supply issues,” he said.
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