Water deal with private firm ‘not the solution’

BACOLOD City Councilor Dindo Ramos said Tuesday the planned joint venture agreement between the Metropac Water Investment Corp. (MWIC) and Bacolod City Water District (Baciwa) is not a solution to the water supply problem in the city.

Ramos, who led the City Council’s committee hearing on the unsolicited proposal from MWIC for a joint venture with Baciwa, said different sectors have viewed the joint venture as not necessary to solve the supply problem and improve the water firms services.

Last month, the Utilities Consumers Alliance of Negros (Ucan) urged the City Council to conduct an investigation into the reported privatization plan of Baciwa.

“Once the joint venture agreement will be materialized, it will lead to privatization of the water district,” Ramos said.

The Baciwa management is offered to form a joint venture corporation with MWIC.

But Ramos said there is a proposal for Baciwa to undertake the improvement of its facility.

With this option, Baciwa could apply for a loan from the Local Water Utilities Administration and from a bank, Ramos said.

“They (Baciwa) could also ask a subsidy from national government, and the congressman could also give a subsidy,” the councilor added.

Ramos said Baciwa refused to give them a copy of the contract for confidentiality reasons.

After the committee hearing, Ramos said he will make a recommendation to be submitted to the City Council within the month.

The Baciwa Employees Union-National Federation of Labor Unions (BEU-Naflu) also released its position paper on the unsolicited proposal of Metropac for a build, operate and transfer joint venture.

The BEU-Naflu is strongly against the proposal of Metropac.

Earlier this month, the Baciwa ad hoc committee said it will recommend to the Board of Directors to reject the MWIC unsolicited proposal.

Union president Claudio Salmo, one of the committee members, said they want the unsolicited proposal rejected because of lack of due diligence and feasibility study.

“The final say would still be up to the board,” Salmo said.

The committee is composed of assistant general manager Samuel Penado as chairman, engineer Jennelyn Gemora, as vice chairman while members include Christine Polanas (finance), Diana Peitan (legal), Gino Amantillo and Rommel Paredes (technical), and Salmo and Joevanie Padilla (employees union).

Salmo said another company, Prime Water had also submitted an unsolicited proposal. The said proposal is with at the office of general manager Mario Macatangay.

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph