THE Prime Water Infrastructure Inc. has passed the negotiation stage for its unsolicited proposal for a joint venture with the Bacolod City Water District (Baciwa).
This was confirmed by Baciwa Board chairman Lawyer Lorendo Dilag in a press conference at O’ Hotel in Bacolod City Wednesday, July 10.
Dilag, who was joined by the members of the Joint Venture Selection Committee (JVSC), said the board will prepare the Term of Reference (TOR).
After about a month, a competitive bidding open to all interested and prospective bidders will then be held.
“The Baciwa Board is against privatization and a joint venture is not privatization,” he said, adding that Prime Water has passed with all the legal, technical and financial requirements of the JVSC.
The Baciwa Board official said the water district has been transparent with all the procedures following the unsolicited proposal submitted by Prime Water.
Director Mona Dia Jardin, who was also at the press conference, said joint venture is one “proposed answer” to the water problem affecting all over the country including Bacolod City.
The joint venture with a private proponent is seen to improve potable water availability -- 24 hours and seven days a week -- with minimum pressure of 10 pounds per square inch to existing consumers and new growth areas.
It will enable the installation and construction of additional transmission and distribution lines supported with technically advanced infrastructure to attain balanced distribution of water to the entire service area.
Through which, there can be a replacement and rehabilitation of aging infrastructure and facilities, and provision of efficient and responsive customer service as well as of septage management system for sanitary deluding and treatment services.
Dilag said Baciwa will still be under the guidance of the Office of the Government Corporate Counsel (OGCC).
The proposed joint venture agreement, he said, is not permanent.
“It is only up to 25 years. After which, all properties and assets of the joint venture shall be donated and turned over free of charge or at no cost to Baciwa,” he added.
Moreover, the Baciwa officials said the increase in water rates can only be made by the joint venture upon the approval of the Local Water Utilities Administration (LWUA) and after several public hearings.
Water rate increase, therefore, is regulated by the LWUA and not at the discretion of the proposed joint venture partnership.
They added that all Baciwa employees not included in the reorganization shall be absorbed by the joint venture partner without diminution of remuneration.
“All absorbed employees shall also be assured of security of tenure and their rights will be protected under the labor laws and regulations,” they said, adding that employees have the option to retire and avail of the retirement incentive and livelihood assistance offered by the joint venture partner.