BY GEROME DALIPE IV
ILOILO City – The Committee of the Whole is satisfied with the justification provided by Metro Pacific Iloilo Water (MPIW) relative to its proposed water rate adjustment.
In its report, the Committee said the MPIW has presented a thorough explanation and valid reasons for adjustments they are planning to implement necessary to ensure the sustainability of water services and infrastructure improvements.
“The need to adjust tariffs periodically is recognized. Such adjustment must be done transparently to keep the City and consumers informed and should reflect actual costs incurred,” read the committee report.
Angelo David Berba, MPIW’s Chief Operating Officer, expressed his gratitude to the city council members for their positive response to the justification provided.
Berba reiterated their assurance of transparency and compliance with the recommendations of the City Council committee, highlighting MPIW’s commitment to maintaining a collaborative and accountable relationship with the city government.
“We at Metro Pacific Iloilo Water would like to extend our heartfelt gratitude to the esteemed members of the Committee of the Whole, chaired by Vice Mayor Jeffrey Guanzon, for their positive response to our recent justification for the water rate adjustment. Your understanding and support are invaluable to us as we strive to provide the highest quality of water services to our community,” said Berba.
“We assure you of our unwavering commitment to transparency throughout this process. MPIW is dedicated to complying with all recommendations provided by the Committee and maintaining open, transparent, and honest communication with all stakeholders,” Berba added.
The City Council, convening as Committee of the Whole, conducted an inquiry “in aid of legislation” on MPIW’s proposed water rate adjustment from P20 to P29 per cubic meter.
The probe stemmed from the letter of former councilor and lawyer R Leone Gerochi to Public Utilities Committee chairperson Councilor Romel Duron.
MPIW clarified that certain documents requested, such as those related to joint ventures with Metro Iloilo Water District (MIWD) and water supply agreements, fall under the authority of MIWD for release.
However, MPIW assured us of its commitment to help facilitate the disclosure process. Under the joint-venture agreement, MIWD acts as the regulatory body overseeing compliance, while MPIW manages operational aspects including distribution system maintenance, expansion, and rehabilitation.
MPIW emphasized its cautious approach in releasing documents related to the joint venture annexes, citing the need to protect confidentiality provisions stipulated in contracts.
Berba also highlighted the company’s commitment to safeguarding sensitive information that could impact competitive advantage, violate contractual obligations, or compromise customer and employee confidentiality.
In its report, the Committee recommended that MPIW submit regular updates relative to the implementation of its five-year plan.
“Constant collaboration between the Committee, MPIW, MIWD, and other relevant entities is essential to ensure a quality water supply in the city,” the report read.
The committee also recommended the conduct of a hearing in Iloilo regarding the MPIW’s adjustment rate proposal to provide a platform for the consumers to voice their concerns and feedback.
“The date, time, and venue of the hearing should be well-publicized through various media channels, including local newspapers, radio stations, and social media platforms to maximize public participation,” the committee said.
The conduct of the committee hearing will ensure transparency and allow the stakeholders to participate in the discussion, the committee stressed.
The MPIW clarified it conducted a public hearing with stakeholders relative to its water rate adjustment in May this year. The water utility firm also plans to continue its communication project plans through information campaigns, education, and other similar initiatives with the communities and stakeholders to ensure transparency.
In his presentation during the committee hearing, Berba emphasized that MPIW has not adjusted its rates in six years.
This, despite the rising operational costs since 2019, including a 33 percent increase in bulk water prices, a 34 percent increase in fuel costs, a 74 percent increase in material costs, a 22 percent increase in chemical costs, a 25 percent increase in labor costs, and continuous increase in permitting cost affecting project implementation.
Comparatively, MPIW’s current rates remain among the lowest in Metro Iloilo. MIWD has officially submitted the tariff rate application to the Local Water Utilities Administration (LWUA), the application outlines detailed justifications for the proposed adjustment, emphasizing the need for sustainable financial planning to support the already substantial budget for the ongoing service improvements and operational efficiencies, ensuring improved water services for residents and customers.
“We have meticulously studied and consulted on this rate adjustment to balance the need for necessary improvements while avoiding overcharging,” explained Berba during the June 10 committee hearing. MPIW’s proposed rate adjustment initially planned for 2021 but delayed due to the pandemic, represents its first adjustment since taking over operations in 2019./PN
