Divided council approves Prime Water franchise

ILOILO City – A divided Sangguniang Panlungsod (SP) has voted to approve an ordinance granting a franchise to the Villar-owned Prime Water Infrastructure Corp. to construct, establish, commission, operate, and maintain a water supply system in this southern city.

Eight city councilors voted in favor of the ordinance, one dissented while five abstained during the SP’s regular session yesterday.

With such votes, the legislative body adopted the committee report of Councilor Plaridel Nava – chairperson of the committee on public utilities – recommending the granting of the franchise.

The people were clamoring for “better quality of water supply and services,” read part of the ordinance.

It added, “Iloilo City is in need of a more efficient water utility capable of constructing, establishing, commissioning, operating, and maintaining a water supply system that sufficiently addresses the public need…”

In his committee report, Nava cited Section 458 of the Local Government Code of 1991 which stated that the SP as legislative body shall enact ordinances and appropriate funds for the general welfare.

“The sanggunian’s authority to legislate local laws must be anchored on or should be designed to deliver basic services and facilities to promote the general welfare,” read part of the committee report.

DIVIDED

Those who voted in favor of the Prime Water franchise were opposition councilors Nava and Joshua Alim and councilors Candice Tupas, Liezl Joy Zulueta Salazar, Lyndon Acap, Mandrie Malabor, Eduardo Peñaredondo, and R Leone Gerochi who were all allies of Mayor Jose Espinosa III in the Nacionalista Party.

Councilors Lady Julie Grace Baronda, Jay Treñas, Ely Estante, Ma. Irene Ong, and Leila Luntao abstained from voting. They were allies of Cong. Jerry Treñas in the Partido Demokratiko Pilipino – Lakas ng Bayan.

Only Councilor Armand Parcon voted against the franchise ordinance.

In recommending the franchise’s approval, Nava stressed that the legal opinion of the Department of Interior and Local Government (DILG) dated March 14, 2018 was “off-tangent” and “irrelevant” to the Prime Water franchise application.

The DILG opinion was on the water and sanitation franchise of South Balibago Resources, Inc. which the city council granted in 2016, as a reply to Councilor Gerochi’s query.

Metro Iloilo Water District (MIWD) questioned the granting of franchise to South Balibago. The case is now pending in court.

According to the DILG, only the National Water Resources Board (NWRB) can issue a water and sanitation franchise. He cited Presidential Decree (PD) 1076 or the Water Code of the Philippines – the law that governed the ownership, appropriation, utilization, exploitation, development, conservation, and protection of water resources.

“Unfortunately, the DILG has mistakenly intertwined the concept of ‘franchise’ granted by the local government units for water and/or sanitation services with that of ‘water rights’ regulated by the NWRB,” said Nava yesterday.

The SP granted Prime Water a non-exclusive franchise for a period of 25 years to service all barangays as franchise area.

A franchise fee of P1 per cubic meter shall be paid by Prime Water to the city government.

In voting against the franchise ordinance, Parcon pointed out that MIWD could very well do what Prime Water was proposing. He also cited the recently sealed P12-billion joint-venture agreement between MIWD and Metro Pacific Water for the rehabilitation, expansion and improvement of the water district’s distribution system and wastewater management facilities.

Parcon said, too, that DILG’s opinion must not be ignored.

“Naghambal sila nga indi pwede, so wala na sang rason nga indi kita magpati,” said Parcon.

Meanwhile, Ong and Baronda said they wanted to have more time to scrutinize Nava’s committee report.

“Mas nami tani kon na-send sa amon ahead,” said Baronda.

She also said it would be wiser to wait for the resolution of MIWD’s case with South Balibago.

MIWD TO FILE COMPLAINT

MIWD legal counsel Roy Villa said the water district could be pursuing criminal, administrative and civil charges against the SP and even the city mayor.

The charges could be for usurpation of authority, graft, abuse of authority, and grave misconduct, among others, he said.

MIWD is maintaining that the city council has no authority to grant a water franchise.
“Iya na ‘ya function sang national government. Gin-warning-ngan na sila sang DILG kag may ruling na dira ang Supreme Court consistently, not only in one case,” said Villa.

He also questioned the “hasty” approval of the franchise ordinance yesterday.

“Ano gid ang madalom nga rason? Ngaa ginsaku gid nila despite nga may warning,” said Villa.

As to the “public welfare” reason that the city councilors cited in approving the franchise ordinance, Villa said, “Ang public welfare pirmi lang na ginahimo nga rason sang pulitiko. Naghambal ang Supreme Court nga ang public welfare clause under the Local Government Code indi sufficient for purposes of granting a franchise with respect to water use and utilization.”/PN

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