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Friday, September 02, 2005
MCWD won’t implement 12% hike for 5 yrs. while contract still unsigned
The Metropolitan Cebu Water District (MCWD) will not implement the approved increase of 12 percent per year for five years, as approved by the Local Water Utilities Administration (LWUA).
That’s, as long as the water district and the proponent of the Carmen water supply project have yet to sign a contract, MCWD general manager Armando Paredes clarified yesterday.
He said that if the Carmen water supply project is implemented, the 12 percent per year increase would be enforced for three more years.
At present, MCWD and the proponents of the Carmen water supply project—the consortium of Ayala Corp. and Stateland Corp.—are still reviewing provisions of a draft contract.
The consortium wants to sell 50,000 cubic meters of water a day to MCWD, starting at P25.72 per cubic meter on its base year, which is initially set in 2007.
With a 12 percent increase, a household that pays about P109 for minimum volume consumed (not more than 10 cu. m.) will be paying about P124.20. This amount, though, does not include other variables that affect the cost of water, such as power rates.
Paredes said LWUA also approved MCWD’s proposal to add two percent on water rates, on top of the 12-percent increase per year. The two percent will serve as the water district’s contribution to the National Government.
Conditional
This increase is also conditional, said Paredes, because it cannot be implemented until Malacañang issues a proclamation providing that water districts in the country may give part of their income to help the government cope with the fiscal crisis.
The two percent additional increase is considered by MCWD as a “compromise contribution” that is meant to persuade the Bureau of Internal Revenue (BIR) not to push through with the plan to collect income and national franchise taxes from water districts.
Paredes said the total approved increase is 14 percent.
The increase will be reflected in water bills covering this month’s consumption. (LAP)
(September 2, 2005 issue)
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