IT’S a done deal.
The Bacolod City Water District has signed a 25-year Joint Venture Agreement with Prime Water Infrastructure Corporation for the management and development of the water district.
The Joint Agreement will commence on November 1, 2020 after the three-month transition period, Atty. Lorendo Dilag, Chairman of the Baciwa board.
He said Prime Water will infuse a total of P6.8 billion in terms of projects.
Of the total amount, Prime Water will infuse P1.6 billion for the first five years for the pipe laying and repair of pipes, P2 billion on the fifth year and a total of P6.8 billion for 25 years.
All the improvements infused after 25 years will go to Baciwa when the contract is finished, Dilag said.
Dilag in a press conference yesterday explained that the join venture agreement is necessary on the part of the people of Bacolod and it is practical and beneficial to the people of Bacolod.
"Baciwa can now afford to give salaries to its employees and repair the damaged and dilapidated pipelines but it cannot afford for the expansion in the coming years especially that the demand for water is growing in Bacolod City," Dilag pointed out.
The signing of the joint venture agreement took years of scrutiny and review before it's final signing yesterday. Two other companies submitted their proposal, the Metro Pacific and Manila Waters, but they were disqualified after the evaluation.
On water rates
Romeo Sabatir, Vice President of Prime Water said Prime Water will be in charge of the day to day operation during the duration of the contract but the present Board of Directors will still be there until the duration of their term.
Sabatir said the two parties will exist and Baciwa will still be there and will be in charge of some basic control, giving directions, hitting targets and make sure that Prime Water will implement what they have committed based on schedule.
Dilag said that concessionaires can access all the details of the joint venture agreement especially under the Freedom of Information Law.
As to the possible rate increase, Sabatir said it is expected during the duration of the agreement but it would not be outright on November 1 during the commencement of the agreement.
Any rate increase he said will be reviewed by Baciwa, will undergo public hearing and will be approved by the regulatory agency.
About the Baciwa employees which is about 500 including the Job Order casuals, Engineer Samuel Pinado said that the present employees have options to stay and join under the Prime Water Management or avail the early retirement program.
Before the signing of the Joint Venture Agreement yesterday, Dilag said the agreement details has gone through the review and approval of the Office of the Government Corporate Counsel and Government Owned and Controlled Corporations.
Prime Water has started and submitted its proposal for the Joint Venture Agreement with Baciwa since 2016.