THE Bacolod City Water District (Baciwa) has tapped the assistance of the Office of the Government Corporate Counsel (OGCC) for the possible amendment of its contract with Baciwa and Bacolod Bulk Water Inc. (BBWI).
Baciwa general manager Juliana Carbon said Tuesday she conducted an assessment of the contract between Baciwa and BBWI, but it’s better that an independent party like the OGCC will give an official opinion.
She said the proposed amendment will allow the bulk water supplier to inject the water directly to the main line.
Carbon revealed that there are some legal problems in the bulk water project.
“We really see the need for additional water supply and we are doing everything to continue the project, but we should not take for granted the legal aspect of the contract,” she said.
Carbon pointed out that for Injection Point No. 1 in Barangay Granada, the bulk water should pass the reservoir at Hacienda Loygoy while for Injection Point No. 2, the water supply should pass the reservoir in Barangay Mansilingan.
The Injection Point No. 1 water treatment plant is located along Abada-Escay Road in Barangay Granada and its pipelines should be connected to the reservoir in Hacienda Loygoy.
“The bulk water supplier has a problem in getting the right-of-way to connect towards the reservoir in Hacienda Loygoy,” Carbon said.
“Just deliver water in the injection points because that is the main essence of the contract. I already relayed it to the Board of the Directors that the provision in the contract must be followed,” she added.
If the OGCC will say that there is a substantial revision in the contract, there will be a delay on the bulk water delivery.
BBWI chairman Ryan Yapkianwee had earlier said the Injection Point No. 1 will deliver water by October.
The supply will include 15,000 cubic meters of bulk water per day with a rate of P8.85 per cubic meter.
Injection Point No. 2 in Murcia is expected to operate by December 2017 or January 2018 and deliver 15,000 cubic meters daily at P9.85 per cubic meter.
Ombudsman complaint
Engineer Jenelyn Gemora, assistant general manager for operations of Baciwa, said Tuesday they are ready to answer the allegations filed by concerned taxpayers before the Office of the Ombudsman related to the procurement of bulk water supply.
Gemora, former chairperson of Bids and Awards Committee (BAC), said she has not received the official copy of the complaint, but they will deal with it once the Ombudsman will instruct them to file an answer.
Carbon said she received the copy of the complaint through an email from Jose Ramon Sy Tuesday.
On September 8, an anonymous complaint was filed by the concerned taxpayers of Negros before the Office of the Ombudsman in Quezon City against Gemora, former Baciwa general manager Mario Macatangay, members of the Board headed by former director Ma. Aida Torre, and members of the BAC.
The complainants said that on July 1 and 2, 2015, the BAC conducted a two-day opening of bid documents for bulk water supply.
Both injection points have an approved budget for the contract at a fixed price of P10 per cubic meter, equivalent to P54.75 million for the first year. The contract with the winning bidder, however, is for 25 years.
The joint venture composed of Mactan Rock Industries Inc., Tubig Pilipinas, and TVG Builders Inc. was the only bidder for both projects, with the MRII as the lead company.
The complainants said that on September 21, 2015, Macatangay issued the notice of award to the joint venture. It was received by the joint venture the following day.
Under the terms and conditions of the notice of award, the joint venture was required to submit within 30 days from receipt its Securities and Exchange Commission (SEC) registration certificate, business permit and licenses, and certified true copy of application for water permit at the National Water Resources Board (NWRB), among others.
It further stated that failure to provide the above stated requirements within the prescribed period shall constitute sufficient ground for cancellation of the award.
They said records will show that the joint venture was incorporated at the SEC as Bacolod Bulk Water Inc. only on May 5, 2016, with amended articles of incorporation was approved in Bacolod City on June 20, 2016 and certified by the SEC on August 31, 2016, which is away beyond the period prescribed by the notice of award.
Furthermore, there also no business permit and licenses, and certified true copy of application for water permits submitted within the same period, they added.
