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Wednesday, September 20, 2006
Mayors, business bloc push water deal
By Linette C. Ramos
CEBU CITY -- Three mayors and three business groups have asked the National Economic and Development Authority (Neda) to approve the Carmen Bulk Water Supply Project without delay, to end the water crisis in their towns and cities.
Mandaue City Mayor Thadeo Ouano, officials of Lapu-Lapu City and the towns of Compostela, Consolacion and Cordova, and the Cebu Chamber of Commerce and Industry have signed a letter endorsing the water project.
The officials are worried that the shortage of water in their localities will hinder the development of northern Metro Cebu.
"The present water crisis will definitely stall the growth and development of our constituencies. The situation is discouraging investors who are providing jobs for our constituents and generating downstream industries in our respective areas," the officials said in the letter addressed to Neda Secretary Romulo Neri.
But if the officials want the Carmen water project to push through, Cebu City Mayor Tomas Osmeña challenged Ouano and the others to be ready with P200 million.
That's the project development cost that the winning challenger will have to refund the Ayala-Stateland Consortium so the Metro Cebu constituents will not have to shoulder the cost, he said.
Osmeña objected to the contract provision that requires the refund of P200 million, saying it will discourage other parties from joining the bidding. He also fears the winning challenger might pass on the project development cost to the consumers.
'Why us?'
But in a rejoinder sent to Sun.Star Cebu by e-mail, Ouano said the P200 million is supposed to be a ceiling, and that only the actual cost will have to be refunded.
"Pasalamat ta nga naa tay mayor nga nituki sa P200 million. Ang pangutana, ang siyudad ba ang pabayron ana? (Let us be grateful there's a mayor who has investigated the P200 million. But the question is, is it the City that will have to pay?)," the Mandaue City mayor commented.
"Nganong kami man ang pabayron sa P200 million? (Why should we be the ones to pay the P200 million?) Challenger diay mi? This is our water!"
If the parties endorsing the swift approval of the project pledge to pay the P200 million, Osmeña said he will no longer comment on the project.
"I find rather strange the circumstances why they signed the general statement of endorsement. If they really like the project as is, I challenge them to pay the P200-million project cost so we can get over this," he told a news conference Tuesday.
"I'd like to congratulate Mayor Ouano. If he's willing to pay that, then fine, because I won't allow Cebu City constituents to pay for it. Or if he (Ouano) sold out, I don't know. I'm just trying to level the playing field so we can have the cheapest water possible. But the more I look at this deal, the more I see that it stinks," he continued.
Who signed
Ouano, Consolacion Mayor Avelino Gungob, Sr., Compostela Mayor Antonio Dangoy, Cordova Vice Mayor Danilo Sinugbuhan, Lapu-Lapu City Councilor Eugene Espedido and Mandaue City Administrator Serafin Blanco signed the letter addressed to Secretary Neri.
Eric Mendoza of the Mandaue Chamber of Commerce and Industry, Edward Gaisano and Ted Locson of Cebu Chamber of Commerce and Industry and a Philippine Chamber of Commerce and Industry official also signed the letter of support.
Their areas of concern, they said, are facing a severe water deficiency, since only 17.8 percent of their population is being served by the Metro Cebu Water District (MCWD).
The remaining 82.2 percent unserved households are forced to source water from private suppliers, which is five to seven times more expensive than MCWD's supply.
"In view of the recent concerns raised regarding the project, the Cebuanos fear that the Carmen project may not be realized at all. We humbly request your good office to proceed with the project and contract evaluation and let the process take its course," the officials said in their letter.
'Overpriced'
"The people of Metro Cebu cannot allow any more delays to spoil a major project that will benefit us economically, socially and environmentally. We are eager to have more water and we trust that the process provided under our laws for such projects will allow the best price of water for the Cebuanos," they further said.
The proposed contract for the Carmen Bulk Water Supply Project is currently under review by the Neda Technical Working Group.
Osmeña and Cebu Governor Gwen Garcia have asked Neda to review further the contract details, particularly the items they oppose, including the provision that requires the winning challenger to refund the consortium its project development cost.
The mayor and the governor have also declared the price of the water as stated in the contract "overpriced" at P25.55.
In a news conference Tuesday, Osmeña said he will not counter Ouano's move by asking other local chief executives to oppose the project.
"I think the governor is good enough, even Cordova Mayor Arleigh Sitoy said he agrees with our stand. If Mayor Ouano is willing to come up with the P200 million, fine, let them pay for it. Then I will not make an issue out of it anymore," he said. (Sun.Star Cebu)
(September 20, 2006 issue)
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