CONSUMER clamor over rate increases amid inadequate supply and service has prompted Cebu City Mayor-elect Nestor Archival to review the Metropolitan Cebu Water District’s (MCWD) allegedly “expensive” water rates.
Archival told SunStar Cebu on Monday, June 2, 2025, that MCWD’s current operational model, where it procures water from bulk suppliers at P65 per cubic meter but sells it to consumers at P28, is unsustainable. He projected that this disparity could lead to MCWD’s bankruptcy within two years.
“What business wouldn’t collapse from that?” Archival said in Cebuano, expressing his disbelief at the model’s viability.
The mayor-elect cautioned that MCWD’s potential bankruptcy could result in privatization, which he believes would further increase water prices for consumers. Archival explained that consumers are expressing dissatisfaction due to what they perceive as inadequate services and an unreliable water supply, which they feel does not justify the charges on their monthly bills.
He added that while MCWD’s rates might appear cheaper compared to some water districts outside the region, consumers consider them expensive because of the poor service. Archival acknowledged that other water districts in the country might have higher rates, but they offer significantly better service.
“It’s high [the cost] because the service is poor,” said Archival. “They [other water districts] are actually expensive, but their service is good. But here, it’s cheap, yet the service makes us wonder.”
Archival plans to coordinate with Gov.-elect Pamela Baricuatro to discuss water supply issues, emphasizing the Cebu Province’s crucial role. He noted that the residential water rate applied to consumers is a subsidized rate, hence it appears cheaper.
However, once consumption exceeds a certain threshold, particularly over 30 cubic meters daily, charges increase significantly. To address this, he suggested that barangays educate residents on daily monitoring of water and electricity meters, empowering consumers and helping prevent unexpected high bills.
Last March, MCWD introduced a new tariff rate, an increase that came after almost a decade without an adjustment. The last MCWD tariff hike was in January 2015, despite the utility being entitled to review rates every five years. The Covid-19 pandemic further delayed any changes.
The major reason for the perceived “reduced bills” is the integration of the Purchased Water Adjustment and Power Cost Adjustment into the base rate, effectively resetting these charges to zero.
Archival pointed out the high cost of bulk water contracts, citing the P65 per cubic meter rate with Cebu Manila Water Development Inc. (CMWDI), a substantial increase from a previous P24.59 per cubic meter. Other bulk suppliers, including those utilizing surface water and desalination, also charge similarly high rates at P65-P70 per cubic meter.
He raised questions about the transparency of the bidding process for these water supply contracts, particularly with CMWDI, implying a lack of clarity in how these contracts were awarded.
CMWDI is a joint venture firm established in 2012 between the Cebu Provincial Government and the Enrique Razon-led Manila Water Consortium. It collects and treats surface water from Carmen town’s Luyang River in northern Cebu. It then supplies 35 million liters of water daily to MCWD, benefiting at least six local government units under the district’s coverage area: Compostela, Liloan, Consolacion, Mandaue City, Cebu City and Lapu-Lapap City.
However, the CMWDI contract with MCWD was reportedly terminated in 2023 due to a tariff rate that CMWDI deemed disadvantageous.
Archival said CMWDI reportedly has new concessionaires after the Ayala consortium sold its stake, but their identity has yet to be revealed.
“Because they couldn’t endure it, they were constantly being criticized, that’s why it became expensive,” Archival said, seemingly referring to the previous contract’s issues. He added that the governor-elect’s involvement in the joint venture firm will be crucial.
While no immediate changes to the MCWD board are anticipated, Archival expressed a desire for more transparency from the existing board members.
The MCWD board is composed of five members, but at least three are needed to declare a quorum. The existing board members are led by Miguelito Pato (chairman), with members Jodelyn Mae Seno (vice chairperson), Ferdinand Pepito (secretary) and Marlo Pil Maamo.
The appointment of the water district’s board was contested in the previous year when former mayor Michael Rama fired the board members, led by then-MCWD chairman Jose Daluz III, and appointed retired general Melquides Feliciano and two others to fill the board, until outgoing Mayor Raymond Alvin Garcia assumed office and appointed his own board members. / EHP