The Bacolod City Water District (BACIWA) Board of Directors stressed anew that its proposed joint venture agreement “is not synonymous to privatization.”
“Contrary to the claim of some sectors that the proposed Public Private Partnership – Joint Venture Agreement undertaken by BACIWA Board is privatization, the Board begs to disagree,” it said in a statement.
“The Public Private Partnership (PPP)-Joint Venture is not Privatization. A joint venture is an arrangement whereby a private entity on one hand, and a Government Entity like BACIWA on the other hand contribute money or capital, services, assets (including equipment, land, intellectual property or anything of value), or a combination of any or all of the foregoing, to undertake an investment activity. The investment activity shall be for the purpose of accomplishing a specific goal with the end view of facilitating private sector initiative in a particular industry or sector, and eventually transfer the activity to either private sector under the competitive market conditions or to the government,” the board’s statement added.
“Privatization involves sale and transfer of assets. Under the proposed PPP, existing facilities will still be owned by BACIWA. New facilities and asset acquisitions will be turned over to BACIWA at the end of the contract period. BACIWA shall remain to be in the forefront of delivering quality water services to its consumers by setting the policies and service obligations of the private partner under the Joint Venture Agreement,” the statement added.
“It is incumbent upon the Board of Directors of BACIWA to inform the public what the Proposed PPP-Joint Venture Agreement is all about. It is the position of BACIWA that the Proposed PPP-Joint Venture agreement is not synonymous to Privatization”, it also said.*(NDB)