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[av_heading heading=’MIWD DEFIES JOE Water district seals P12-B deal with joint venture partner ‘ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY GLENDA SOLOGASTOA
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ILOILO City – Metro Iloilo Water District (MIWD) pushed through with its P12.349-billion water distribution joint venture with a private company despite Mayor Jose Espinosa III’s order for it not to do so.
A Notice of Award was issued to MetroPac Water Investments Corp. (MWIC) yesterday, confirmed MIWD’s legal counsel Roy Villa.
The 25-year deal involves the rehabilitation, upgrading, expansion, operation, and maintenance of MIWD’s water distribution facilities.
It also includes wastewater management services and additional water supply in excess of MIWD’s currently contracted bulk water supply.
Espinosa expressed fear that the multibillion-peso joint venture would jack up MIWD’s water rate.
In the first five years, the joint venture sets out to achieve the following:
* increase service coverage
* increase areas with 24/7 water supply at a minimum pressure of 10 psi
* continuous compliance with Philippine Standards for Drinking Water
* reduction of nonrevenue water (water losses)
* efficient and responsive customer service
* construction of septage treatment plant subject to the issuance of any applicable governmental approvals, and purchase of new desludging trucks
The Notice of Award was received yesterday by MWIC president, Atty. Lawrence Rogero.
MIWD’s service area is some 373 square kilometers covering this city and seven municipalities in Iloilo province.
According to the water district, however, its operation only reaches around 21 percent of its coverage area.
MIWD also placed its nonrevenue water at around 47 percent.
Espinosa warned “there won’t be any rollback in the water rate unlike in fuel” once MIWD pushed through with its joint venture with MWIC.
“Kon dako imo investment, dako man imo increase. Indi lang nga bawion mo ang imo investment, may ginansya pa. Ti sin-o ang hul-an?” said Espinosa.
According to MIWD general manager Imelda Magsuci, the joint venture would commence what it set out to do once the Office of the Government Corporate Counsel finishes its review of it and give its go-signal perhaps by next month.
WATER RATE
Engr. Arnold Laurente, chairperson of MIWD’s joint venture selection committee, said the water district and MWIC agreed that for the first two years of the venture, the rate prevailing at the time of the water distribution takeover would be followed.
Also yesterday, General Manager Imelda Magsuci said a public hearing would be conducted on MIWD’s proposed water rate increase.
But the 26 percent proposed hike – P20 per cubic meters of water from the current P15.90 per cubic meter – is not yet final, she clarified.
MIWD filed its application for a rate increase with the Local Water Utilities Administration (LWUA) in August this year.
It is currently under “initial evaluation” by an advisor in LWUA, said Magsuci.
MIWD clarified the processes involved in its rate hike application apparently in reaction to Espinosa’s complaint that the city government was not informed of it.
“The advisor is still evaluating the proposed rate’s reasonableness,” said Magsuci.
The evaluation includes a review of the water district’s operational expenses, capitalization and expenditures, she revealed.
This was why informing the city government about the proposed increase was still “premature”, according to the general manager.
“Pag-evaluate nga okay na, ibalik sa amon for the approval of the Board. Then it will be sent back to LWUA for final action,” said Magsuci.
LWUA could either approve or deny the MIWD Board-approved rate, she said.
“Only after LWUA’s final approval the proposed rate would there be public hearings,” said Magsuci.
The city government would be informed about the hearings, too, she stressed.
MIWD clarified, too, that under the joint venture with MWIC, existing facilities would still be owned by MIWD while all new facilities introduced would be transferred to MIWD’s ownership upon the lapse of the contract.
MIWD is also assured of representation in the joint venture corporation board – at least two directors – and has a share in the profit./PN
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