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[av_heading heading=’MIWD: WE CAN’T JUST STOP P12B deal to push through ‘ 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 – The recent Supreme Court ruling on the appointing authority of Metro Cebu Water District’s (MCWD) board of directors should not in any way affect the transactions of Metro Iloilo Water District (MIWD), stressed General Manager Imelda Magsuci.
MIWD will be awarding a P12.349-billion contract to private water distributor MetroPac Water Investments Corp. (MWIC).
“Ma-take over na sang private corporation ang (water) distribution,” said Engr. Arnold Laurente, chairperson of MIWD’s joint venture selection committee.
Mayor Jose Espinosa III said the other day “whatever transactions MIWD currently has, it must refrain from making decisions until we can really see with certainty ang decision sang Supreme Court.”
Magsuci said what Espinosa was asking would adversely affect MIWD consumers because “we are providing water which is a basic need of the people.”
WATER DELIVERY
“Our transactions are mostly on water delivery. What else na transaction ang aming ipa-stop? Let us be specific. Kasi kon hambalon nga projects, for instance (water) pipelines…we will lay these to deliver water, so kailangan mo syang i-stop?” asked Magsuci.
MWIC made an unsolicited proposal to MIWD to handle its water distribution function. According to Laurente, no other interested parties challenged the MPIC proposal.
At P12.349 billion, this is deemed to be MPCIs’ largest joint venture outside Metro Manila.
Laurente said deal was governed by 2013 Revised Joint Venture Guidelines of the National Economic Development Authority.
The Supreme Court ruled that the mayor of Cebu City should be the appointing authority of MCWD’s board of directors and struck down as unconstitutional a provision in Presidential Decree 198 (Local Water District Law) which stated that if less than 75 percent of the total concessionaires are found in the city, the appointing authority shall be the governor.
“Some members of MIWD’s board are lawyers. Our corporate secretary is also a lawyer. They will study kon ano gid ang tama nga steps nga sundon,” said Magsuci.
But she stressed MIWD transactions involving the delivery of water must not be halted.
“’Di ba nagmamadali nga tayo na ma-deliver ang basic (water) service? Tapos ipa-stop? Very ironic,” said Magsuci.
She insisted that the appointment of MIWD’s board of directors was valid and had legal basis.
“Ang bal-an ko the application of the law is prospective, indi retro(active). At the time nga na-appoint ang mga board (of directors), wala pa ang latest ruling (of the Supreme Court),” said Magsuci who used to manage the water district in Davao City.
NO SAY?
In a previous interview, Espinosa lamented that the city government had no say in the operation of MIWD even if the water district was primarily established to serve Iloilo City residents.
He said whatever deals of MIWD would certainly affect the people of Iloilo City, the water district’s primary service area.
“We are very transparent. During the negotiation we were assisted by the United States Agency for International Development. After na-complete ang negotiation, we published it. The deadline was Nov. 22 for those entities na gusto i-challenge ang proposal (of MWIC) but on Nov. 22 wala kami na-receive na challenger,” said Laurente.
Magsuci said they would defer to the opinion of MIWD’s legal counsel regarding Espinosa’s call for them to refrain from taking actions or making decisions while he seeks clarification on who really has the authority to appoint the water district’s directors.
The current MIWD directors, who each have a term of six years, are Dr. Teodoro Robles (chairman), Atty. Juanito Acanto, Dr. Jessica Salas, Ramon Cua-Locsin, and Atty. Josephine Abad-Caram. They were appointed by Gov. Arthur Defensor Sr. of Iloilo province.
Abad-Caram’s term will end in December 2018. Those of Robles and Cua-Locsin will expire in 2020 while those of Acanto and Salas, in 2022.
THE DEAL
MIWD and MWIC, a wholly-owned water infrastructure investment platform of Metro Pacific Investments Corp. (MPIC), previously signed a P2.8-billion joint venture agreement to form bulk water company MIBWSC.
Under the agreement, MIBWSC will supply MIWD with water.
While the issue on water supply was addressed, Laurente said, another problem that MIWD needed to address was the distribution, thus they embarked another joint project.
According to Magsuci, the joint venture with MWIC for water distribution was for 25 years.
“As a joint venture, may share ang water district. This is not privatization. After 25 years, water distribution facilities will be taken over by MIWD or i-renew ang agreement,” said Magsuci.
Regarding the rate of water, Laurente said MIWD and MWIC agreed that for the first two years, the price prevailing at the time of the water distribution takeover would be followed.
The current rate (no increase since 2004) is P159 per first 10 cubic meters or P15.90 per cubic meter.
Magsuci, however, admitted MIWD has a pending application at the Local Water Utilities Administration to increase the rate at P200 per first 10 cubic meter.
NUMBERS MATTER
Espinosa saw similarities between MCWD and MIWD with respect to the appointing authority of the water district board.
In September 2013, the power to appoint the members of the MIWD board shifted from the Iloilo City mayor to the Iloilo provincial governor. Judge Danilo Galvez of the Regional Trial Court (RTC) affirmed the findings of the body he created to look into the number of active concessionaires of MIWD.
A fact-finding commission reported that the total number of concessionaires in Iloilo City as of April 30, 2013 was 21,130 or 66.14 percent of the total number of concessionaires in the entire MIWD coverage area, which was then at 31,948. The combined number of concessionaires from Cabatuan, Leganes, Maasin, Oton, Pavia, San Miguel, and Santa Barbara reached 10,818 or 33.86 percent of the grand total.
As of last month, according to Magsuci, MIWD’s concessionaires in Iloilo City were at 63.16 percent while those from Iloilo province, 36.84 percent./PN
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