ILOILO City – The bulk water supply project being pursued by the Iloilo City Government and Aboitiz InfraCapital (AIC) could trigger steep increases in household water bills, warned Metro Pacific Iloilo Water (MPIW), the city’s major water distributor. It raised red flags over the project’s pricing and the lack of direct consultation with stakeholders.
MPIW chief operating officer David Berba said they remain unconvinced that the project, as initially presented, would benefit consumers, particularly with a proposed bulk water rate of about ₱41 per cubic meter.
“We are not privy to the contract, so we really cannot comment on the details,” Berba said. “(But) based on the preliminary presentation, we already raised our concern, particularly on the tariff.”
Berba warned that once value-added tax and system losses are factored in, the cost of water passed on to households could rise dramatically.
“The bottom line is, ₱41 is very expensive,” he said. “Their tariffs could double or even triple compared to today’s pricing. From our perspective, that’s not prudent.”
He stressed that water utilities have limited capacity to absorb high bulk water costs without transferring the burden to consumers.
“It’s impossible that prices won’t go up. You can’t expect any LGU or water utility to absorb very high costs and then sell water at less than half the price. That kind of model is simply not sustainable,” Berba added.
The MPIW executive also said the company has not been engaged in any discussions on the project’s pricing structure, leaving it unable to fully assess the proposed agreement.
“Unfortunately, there have been no discussions with us. They haven’t reached out, so we’re really clueless about what’s inside this contract,” he said.
While reiterating support for efforts to improve Iloilo City’s long-term water supply, Berba emphasized that affordability must remain a central consideration.
“What we want in the end is modest tariffs for our customers,” he said. “We can deliver water at around ₱18 per cubic meter or even less, so we believe there are more reasonable options.”
Berba noted that talks on the bulk water supply project are still ongoing under the water district’s leadership, expressing hope that the final arrangement will strike a balance between ensuring reliable supply and protecting consumers from sudden and excessive rate hikes./PN
