BAYAN Muna Party-list Representative Ferdinand Gaite is planning to file a resolution in Congress to investigate the proposed privatization of Bacolod City Water District (Baciwa) in Bacolod City.
Gaite, along with members of the Amlig Tubig, an alliance of concerned water consumers, held a public consultation Thursday, October 10, on the proposed privatization of Baciwa at St. John Marie Vianney Hall, San Sebastian Pastoral Complex in Bacolod City.
Also present were Councilors Wilson Gamboa Jr. and Carlos Josse Lopez.
Gaite said he will file a separate resolution to investigate the proposed privatization of Baciwa and on the allegations that there were graft and corrupt practices on the management of the water district.
"We will investigate these so that we can have an appropriate legislation for the benefits of the people of Bacolod," he said.
He added on July 1, 2019, he already filed House Resolution 10, urging the House of Representatives, through the Committee on Government Enterprise and Privatization, to investigate, in aid of legislation, the privatization of water utilities in the different parts of the country, particularly the privatization of Metropolitan Water Works And Sewerage System (MWSS) and the local water districts, and its impact to the provision of services and security of tenure of water districts employees.
Gaite noted that this is one of his priority measures for the 18th Congress.
"Not only Baciwa is under threat of privatization, but many other water districts are now being threatened," Gaiete said.
He said of the 500 water districts nationwide, 71 water districts were already privatized.
Gamboa said Baciwa is now in the stage four on their proposed joint venture or public-private partnership between the Prime Water.
"We are thankful to Gaite that he will file a separate House Resolution to investigate the proposed privatization of Baciwa," he said.
The City Council earlier approved a resolution asking the House of Representatives to conduct an inquiry in aid of legislation on why the Baciwa failed to provide clean and potable water in the city.
The resolution was authored by Gamboa and was approved during the regular session of the City Council on June 26.
Gamboa said considering the importance of water in the lives and survival of humans, it is of primordial importance that Congress should look into why Baciwa failed to provide adequate clean and potable water, which cracked Baciwa to the vulnerability of a takeover by private economic predators like the Prime Water.
He said they also invited the general manager and board of directors of Baciwa, but failed to attend and show up.
He added in previous months, Baciwa officials also failed to attend regular session of the City Council to update them on the proposed privatization.
Leny Espina, president of Baciwa Employee's Union, said they are opposing the proposed joint venture or privatization because this is not good for the people of Bacolod that the private company will handle the water district.
She said the Manila Water also submitted its documents last week and if they passed on the eligibility, they will purchase another documents for financial and technical.
"We will wait if there will be more proponents on the privatization of Baciwa, but we will continue our opposition to privatize the water district and we are also thankful to Gaite that he will make a separate resolution in Congress to investigate the proposed privatization of Baciwa," she added.
The union also questioned the track record of Prime Water.
Espina said privatization will also affect the more than 500 employees including the job order because they do not have an assurance if they will be absorbed by the new management.
"Privatization is not the answer to address the water supply problem in Bacolod because Baciwa has an existing contract with the Bacolod Bulk Water to improve its services to our consumers," she said.
Lopez, chairperson of the City Council on environment, also said that privatization per se is not bad because the funds of Baciwa on its own cannot keep up with the present development in Bacolod.
"We need private sector participation, however, their claim against Prime Water is also valid because of its bad track record," he said.
He added that Baciwa should make a competitive bidding so that there will be more organizations to join the bidding.
"Let's give the chance for the private sector to participate to keep up with the development in Bacolod City," Lopez said.
Baciwa chair Lorendo Dilag earlier said Baciwa needs P2 billion for expansion and development to answer the needs of the ever increasing population, sprouting subdivisions and business establishments in Bacolod City.
This is the reason why the water district opened for public-private partnership and joint venture agreements.
Dilag pointed out that Baciwa does not receive any subsidy from the government and has no funds estimated in the sum of P2 billion according to the five-year strategic plan of 2016 for expansion and development.
Three companies submitted unsolicited proposals to Baciwa, namely: Metropacific of the Pangilinan Group, Prime Water of the Villar Group, Manila Waters of the Ayala Group in consortium with Tubig Pilipinas.
Dilag said this will be evaluated one after the other according to the first in time rule of the 2013 NEDA Guidelines on Joint Venture.
Metro Pacific was first evaluated and was disqualified. The second proponent Prime Water passed the legal, financial stage and the Terms of Reference along with the other tendered documents now being prepared for bidding and competitive challenge.
He added that all qualified interested parties will be invited to participate in this bidding and should Prime Water lose in the competitive challenge , the winning interested party shall be given the award for the joint venture agreement and not Prime Water which is the losing bidder.
Thus, it is premature or at most speculative on Amlig Tubig to harp or focus on Prime Water as the final awardee to this joint venture agreement as the same could not yet be determined, Dilag further clarified.