Sunday, June 29, 2008 Durano sits on MCWD board as DBP's observer: Montecillo
A MEMBER of the influential Durano clan has been sitting at the Metropolitan Cebu Water District (MCWD) Board for several months already, said MCWD Chairman Juan Saul Montecillo.
But Montecillo clarified that the role of former Danao City vice mayor Ramon “Boboy” Durano IV is only as observer representing the Development Bank of the Philippines (DBP) where he is one of the directors.
Montecillo said that the DBP named Durano as representative to the MCWD board because the water utility firm has P1.252 billion debt with the bank.
Observer
Montecillo said that Durano has no voting power, but he can speak during board meetings if it talks about MCWD’s financial status.
MCWD has availed itself of the DBP loan amounting to P1.252 billion to pay off its borrowings from the Local Water Utilities Administration (LWUA).
The deal, according to General Manager Armando Paredes, would allow the water utility firm to save P400 million to P600 million, which is what it would have paid in interests to LWUA.
The interest savings is placed in an escrow account with DBP, a government-owned bank.
On the other hand, MCWD’s loan is payable in 15 years with an annual interest of 9.5 percent. Within this period, Durano will sit as the bank’s representative to the MCWD Board.
Meanwhile, Montecillo spoke before the Rotary Club Cebu East (RCCE) about MCWD’s new directions and ventures.
Invitation
Montecillo said the MCWD wants to share some of the responsibilities of its operations to the private sector.
“We all know that it is very difficult to wage a battle facing different fronts—sourcing and generation on one hand and distribution, rehabilitation and expansion on the other hand. Recently, we are inviting the private sector to become our business partner in the sourcing and generation of water, while we at MCWD will concentrate and pour our resources on the rehabilitation and expansion of our distribution systems and facilities,” Montecillo said. (EOB)
