Consumers lawyer backs Baciwa's joint venture

LAWYER Enrique Tabino, representing consumer of Bacolod City Water District, said it is high time that Bacolod City Water District (Baciwa) needs to engage in a public-private-partnership(PPP).

The lawyer made the statement amid the Baciwa Employees Union, the Social Action Center (SAC) of the Diocese of Bacolod, Councilor Wilson Gamboa Jr., and some barangay officials in the city expressing opposition to the proposed joint venture of Baciwa and the Primewater Infrastructure Corp.

Tabino said that PPP was initiated a long time ago because it can no longer finance whatever improvements that the Office of the Government owned and Control Corporation can.

Baciwa is one of the water districts. However, the financial status of Baciwa is limited so far as operation is concerned, he explained.

"The problem of the board now is how to improve the system, kay bisan diin kamo subong magkadto wala sang serbisyo nga 24/7," Tabino said.

He said several applications are pending in Baciwa because they cannot act upon because "wala sila sang kwaon nga tubig."

"Ang mga oppositor nagahambal nga may ara sa Murcia, but Murcia is limited to serve Mansilingan kay indi man gid sila viable," he said.

Tabino said that in 1979, Baciwa availed a loan of P50 million from the Local Water Utilities Administration (LWUA) to improve the system. Yet there was no improvement as Baciwa is still paying the interest only.

Tabino said the PPP protected the interest of the employees, like the separation or retirement benefit because they are under the Civil Service Commission rules.

He added that one of the concerns for the PPP is that the water rate may increase, but all water utilities are regulated under the LWUA.

On his part, Gamboa continued to lambast the members of the board of Baciwa (BOD) citing that the proposed joint venture is a "take over, not a partnership investment."

Gamboa denounced the move of the Baciwa board of directors to engage the Prime Water Corporation in an onerous joint-venture agreement.

He said Baciwa and BOD engaged a private water utility company, Prime Water, who has already taken over more than 60 water utilities all over the country but only in the span of four years, thus financial track record and viability have not been established yet and their success rate is reportedly zero as of now.

Several barangays in the city passed a resolution citing the joint venture will be grossly disadvantageous to Baciwa, to its employees, and to the residents of the three barangays.

"As soon as the joint venture is approved, a 12 percent value added tax will be applied to water delivered ," they added.

The BOD approved the recommendation of the Joint Venture Selection Committee (JVSC), which include the approval of the negotiation, and terms and condition between Baciwa and the Prime Water Infrastructure Inc. for 25 years.

On May 27, a joined rally at Baciwa with SAC Baciwa employees union and consumers group was held in protest to the proposal of a joint venture.