Monday, October 02, 2006
Ayala faces council today on Carmen water
By Linette C. Ramos
CEBU CITY -- For the first time since objections against the project surfaced, officials of an Ayala-led consortium will explain to the public Monday the P2-billion Carmen Bulk Water Supply Project.
In a public hearing called for at 10 a.m. by the Cebu City Council, proponents are expected to explain why their proposed price is lower than those of other suppliers.
It will be the first time representatives of the consortium will address Cebu City Mayor Tomas Osmeña and Governor Gwendolyn Garcia's concerns.
A source from the consortium, who requested anonymity, said they will also show that the P200-million project development cost Osmeña insists on objecting to is "non-existent."
Officials of Ayala Corp. and project partners Stateland Equity Ventures and Viscal Corp. are expected to attend the hearing.
Osmeña, Metropolitan Cebu Water District (MCWD) Board Chairman Juan Saul Montecillo and MCWD consultants from the International Finance Corp. (IFC) of the World Bank Group will also be present.
"Ayala will show to the public that the price of Carmen water is cheaper than that of other suppliers, on the basis that Mactan Rock is selling water at P25.02 per cubic meter as of June 2006. Ayala's price is P25.50, which is still subject to a price challenge and to be implemented in 2009 yet. That shows we're cheaper than the others," the source said.
Mactan Rock Industries Inc. (MRII) president Antonio Tompar, though, already corrected the figures in earlier interviews.
Tompar has said that MCWD's records are incorrect because as of June 2006, MRII's price was P22.45 per cubic meter, not P25.05 as reflected in MCWD documents.
In a phone interview Sunday, the same source said although the project development cost refund is provided for in the contract, the amount has not been finalized yet.
The consortium will also give a briefing on the project's history, how it started, and the government procedures they took for it.
In a separate interview, Councilor Sylvan Jakosalem said he proposed to call for a public hearing so the public will know the project's implications on consumers.
"We just want to know what its effect will be if it pushes through; if it means more expensive water. If it doesn't, what will happen? Will there be a shortage of water? We should focus on what the project means to the consumers," he told Sun.Star.
Jakosalem said the council will submit transcripts of the public hearing to President Arroyo and the National Economic and Development Authority (Neda) Board, which the President chairs.
Jakosalem heads the City Council committee on energy, transportation, communication and other utilities.
The project's contract is still with Neda's Investments Coordination Committee (ICC) technical working group and awaits second-pass approval.
From the ICC, it goes to the Neda Board for final approval before it is put up for bidding, when the Swiss challenge will take place.
"If Ayala gets the project, it will be a deal between Ayala and MCWD. But the bottom line is that it's the consumers who will be directly affected by it," Jakosalem said.
As early as August, Osmeña has objected to and expressed suspicion on the way Neda and its proponents handled the proposed project.
He has repeatedly called on Neda to reject the unsolicited proposal so that other suppliers can provide water to Cebuanos at a cheaper price.
The mayor alleged a lack of transparency, overpricing by the consortium, and conspiracy among the proponents and government officials to hasten the project's approval, among other things. (Sun.Star Cebu)
(October 2, 2006 issue)
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