THE Metro Cebu Water District is changing strategy to lower costs and stabilize its finances. By reducing reliance on expensive private supply contracts and producing more of its own water through wells and desalination, the utility hopes to manage costs for its 200,000 consumers.
In recent years, MCWD has relied heavily on bulk water purchased from private companies. But that supply has become costly: water produced from MCWD groundwater sources costs about P15 per cubic meter, while private bulk water can cost as much as P73 per cubic meter.
To limit rate increases, MCWD uses a blending strategy, mixing lower-cost groundwater with more expensive private supply before distribution.
MCWD General Manager John DX Lapid said the utility needs to return to its “core mandate” of producing its own water. The plan has two main parts:
First, MCWD is looking for new well sites in Cebu City, Mandaue and Lapu-Lapu City. Lapid said this is the fastest and least costly way to increase supply, especially in areas with current shortages.
Second, MCWD wants to build its own desalination plants. The utility said in-house desalination would give it more control over supply and long-term pricing.
The shift also carries risks. Excessive groundwater pumping can cause saltwater intrusion, in which seawater seeps into freshwater aquifers and contaminates them. Desalination does not depend on rainfall, but it requires major capital investment and large amounts of electricity, making it more expensive to operate than traditional wells.
Starting April 1, 2026, consumers will see a 10 percent rate adjustment on their bills. MCWD said the increase is needed to bridge the gap between production costs and the revenue it collects.
By reviewing expensive contracts and delaying deliveries of water it cannot yet distribute, management said it hopes the reforms will improve finances within the year.
For residents across Metro Cebu, from Talisay to Compostela, water security remains a daily concern. MCWD said the shift is intended to keep water service reliable and affordable as demand grows. EHP