The City of San Fernando Water District (CSFWD) said it is awaiting feedback regarding the procedural concerns on the reported 100% buyout of PrimeWater Infrastructure Corporation by the Lucio Co-led Crystal Bridges Holding Corporation from the Villar group.
The announcement of the buyout came a month after the City Government of San Fernando Mayor Vilma Caluag issued Executive Order CMO 2025-087 on November 17, 2025, directing the immediate halt of PrimeWater’s operations and turning over water services back to the CSFWD.
CSFWD General Manager Nelson Lingat said the mayor exercised "police powers" in suspending the operations by not renewing the business permit of PrimeWater San Fernando, following reports of alleged poor service, consumer complaints, and violations of the local environmental code.
"The mayor exercised police powers in suspending the operations of PrimeWater in the city because of many unresolved issues despite us giving them ample time to address those concerns and more importantly, unfulfilled commitments under the Joint Venture Agreement (JVA) signed between them and the local water district. Effectively, the executive order also requested the CSFWD to ensure continuity of water services to consumers in San Fernando," he said.
As a government owned and controlled corporation (GOCC), he said the CSFWD is mandated to take over operations, make the necessary interventions, address concerns of consumers and improve services even as there is no clear and transparent feedback from the Local Water Utilities Administration (LWUA) regarding the PrimeWater buyout.
"There is no feedback yet from the LWUA on the procedural aspects and transition of PrimeWater. But we at the CSFWD have to act fast since water is essential. We started by scraping the 12% VAT under Republic Act 7109 which PrimeWater charged. We also initiated flushing measures and other interventions in areas where complaints came from. We want to hear feedback particularly on the JVA so we could do more for the benefit of our consumers," explained Lingat.
He added that the 25-year JVA between CSFWD and PrimeWater San Fernando, which was forged sometime between 2016-2017, is worth P2.9 billion and calling for the rehabilitation of old facilities, construction of new ones including pumping stations, and managing water distribution.
Salient provisions in the JVA are the increase in water supply to 2.19 million cubic meters per month from 1.3 million cubic meters per month; expansion of service to 94,285 concessionaires from 43,918; less than five percent-increase in rates starting the third year subject to the review and approval of LWUA; and reduction of non-revenue water to 15 percent from 25 percent.
Under the agreement CSFWD remains a GOCC while PrimeWater handles operations and financing.
"As early as May last year during the time of the late former GM Jorge Gumba, CSFWD moved to terminate the contract citing persistent service failures and unfulfilled obligations. In fact, the local government has pressured the water district to terminate the JVA due to failed performance standards, including water pressure and supply issues," Lingat said.
"As of now, feedback from the LWUA is very important. Because the JVA is anchored on CAPEX [capital expenditure] but more importantly on public interest, a change in ownership requires a shared understanding of how existing obligations will be carried out under the new management. It is critical to preventing a water supply crisis and ensuring that water flows into the homes of our fellow Fernandinos,” he said.