THE bulk water supply from Luyang River in Carmen town, northern Cebu will not be affected by the impending termination of contract between the Provincial Government and Manila Water Consortium Inc. (MWCI), said Gov. Gwendolyn Garcia.
The governor’s pronouncement came after the Provincial Board (PB) en masse passed a resolution authorizing her to sign the notice of termination against Manila Water for alleged breach of contract.
“Let me make this clear. What we’re terminating is the joint investment agreement (JIA), but the joint investment company (Jico) continues to exist unless we dissolve it. That (Jico) should continue,” Garcia said on Tuesday, Dec. 10, 2019.
On March 21, 2012, during Garcia’s earlier stint as governor, the Capitol entered into a JIA with Manila Water to manage the bulk water supply.
The JIA led to the creation of Cebu Water, a Jico, for the construction and development of water supply facilities that would deliver treated bulk water.
The JIA provided an option to engage in retail supply in certain areas and to some areas in the province by tapping the surface water source of the Luyang River.
In 2014, the P1.1 billion water supply project started producing 35 million liters of water daily for homes in Metro Cebu.
The water produced by the Carmen facility was sold to the Metropolitan Cebu Water District (MCWD). Cebu Water and MCWD have a 20-year supply agreement.
In September this year, then MCWD general manager Jose Eugenio Singson Jr. said the 35 million liters of bulk water the MCWD got daily from Luyang River were supplied solely to Lapu-Lapu City.
“We will make representation to (Carmen) Mayor Carlo Villamor to explain that the Jico should remain as it is unless otherwise dissolved. It’s just the agreement with Manila Water (that is terminated), then we will proceed according to the steps outlined in the JIA,” Garcia said.
She further said: “For now, we’re just supplying bulk water. We’re not really into the distribution, so I think the concerned party should be MCWD. I believe that since the Jico continues to exist, the supply should also continue while we settle our own problems at our level. I don’t foresee a stoppage in the supply of 35 million liters of bulk water because the Jico has a water purchase agreement.”
MCWD is withholding comment on the matter until it can receive communication from Cebu Water. (RTF)