Bacolod Councilor Wilson Gamboa, Jr. scored anew the move of the Bacolod City Water District (BACIWA) Board of Directors to engage Prime Water Corp. in a joint venture partnership.
Inspite of the public pronouncement of BACIWA Board Chairman Atty. Lorendo K. Dilag that there will be no privatization and that he and other directors are against privatization of the water district, Gamboa believes the “onerous joint-venture agreement is a take over and not a partnership investment”.
Gamboa in his speech during Monday’s public forum on the issue convened by Amlig Tubig also stressed that the BACIWA BOD “engaged a private water utility company Prime Water that has already taken over more than 60 water utilities all over the country in the span of four years, thus financial track record and viability have not been established yet and their success rate is reportedly zero as of now.”
In a press statement yesterday, Gamboa added: “Worst is that Prime Water will use BACIWA as its milking cow because they would not commit and infuse capital until the creation or formation of the ‘joint-venture company’ and therefore would utilize existing BACIWA assets, facilities, equipment, high volume water consumer market network, strong financial liquidity to avail of loans and other financial assistance.”
“Not to mention several adverse Commission on Audit (COA) findings applied on Prime Water which include poor project implementation, non-compliance of NEDA guidelines, non-compliance of the provisions of contracts, financial ineligibility, franchise taxes violations, audit suspension and disallowances, unsettled performance bond, among others,” he said.
He added, “Prime Water’s liability is limited to itself and not to its mother company which is the Vista Land or the Villar Group of Companies; it is nothing more therefore but an economic predator in cahoots with the modern BACIWA BOD collaborators and carpet baggers,” the councilor also said in his press statement yesterday.
Gamboa expressed in vernacular idiom, “gin-gisa kag gin-luto ang kita sa aton kaugalingon nga mantika kag masubo pa gid, naglumpat pa dason kita halin sa kalaha derecho sa kalayo” (cooked in our own oil/flesh then jumped from the pan to the fire, which means, knowledge of exploitation to the highest degree yet gladly welcoming exploiters).
Gamboa argued that Prime Water offered to transition BACIWA employees from GSIS to SSS status thus transforming their security of tenure under the Civil Service Law to trust and confidence coverage under the Philippine Labor Law.
He also said that employees are being offered a hefty 450 percent early retirement option and/or separation pay and that not more than 20 BACIWA employees will be retained as part of the agreement; only the BACIWA BOD will be retained to monitor the undertaken project and Prime Water will entirely control, supervise and manage BACIWA.
“These all the more reinforce the fact that a takeover and not a partnership investment package is in the offing… that the BACIWA BOD, acting with impunity beyond the reach of public accountability, is not transparent about the details of this so-called joint venture agreement with Prime Water,” Gamboa added.
IN BAGO.
Meanwhile, a Joint Venture Selection Committee of the Bago City Water District (BACIWAD) has rejected PrimeWater after subjecting to review the unsolicited offer for a joint venture between BACIWAD and PrimeWater.
The committee rejection of the unsolicited proposal, among others are due to the questions on the capability of the private firm based on its other joint ventures with water districts in other parts of the country, and that the BACIWAD committee said the proposal is disadvantageous for Bago.
‘NO PRIVATIZATION.’
The chairman of the board of BACIWA said in a press conference last week that he and other directors are against privatization and the proposed partnership with OtineWaterwill not result to such status.
Atty. Lorendo K. Dilag at the same time said the joint venture with Prime Water is not yet final because other firms will still have the chance to contest the Villar group’s offer.
Dilag said the water district will be transparent when it enters into a joint venture agreement with a private firm to improve its water supply and facilities.
“There is definitely transparency on this matter. We are doing this for the benefit of the City of Bacolod. We press on because our cause is just. We are on the right track,” Board chairman Dilag said, adding that the process is constantly reviewed by the Office of the Government Corporate Counsel (OGCC).
Dilag made the assurance amid apprehensions and concerns raised by employees and consumers on such a move.
In 2016, Baciwa received three unsolicited proposals, but only PrimeWater was able to pass the legal, technical and financial requirements. Still, other proponents can submit bidding documents to challenge the former’s proposal.
Dilag said considering that they do not have enough funds for expansion and improvement of services, the board of directors considered a joint venture with a private proponent.
He pointed out that through the partnership, Baciwa aims to improve water availability to 24 hours-seven days a week to existing consumers and new growth areas; install or construct additional transmission and distribution lines supported with technically advanced infrastructure, and replace or rehabilitate aging infrastructure and facilities.
Baciwa also seeks to reduce non-revenue to acceptable industry standards, provide efficient and responsive customer service, and provide septage management system for sanitary de-sludging and treatment services, he added.
Dilag also assured the residents that Baciwa will not be privatized and any increase in water rates can only be done by the joint venture upon the approval of the Local Water Utilities Administration, and after public hearings are held.
NO RETRENCHMENT.
Meanwhile, Board director Mona Dia Jardin during the presscon said Baciwa “really needs finances to improve (its) service”.
“That is why the board of directors opted for a public-private partnership or a joint venture to speed up the delivery of service to the people. It will add up to better customer service,” she added.
Jenelyn Gemora, assistant general manager for operations, said the proposed partnership will not involve the sale of any assets of Baciwa since it will be a contractual joint venture.
“All assets will still be owned by Baciwa. We will just outsource the development and they will infuse capitalization. At the end of the 25-year-contract period, these assets will all be returned to Baciwa,” she said.
Gemora said all Baciwa employees will be absorbed by the joint venture partner or they may also opt to retire and avail of the retirement package and livelihood assistance.
“No one will lose his or her job,” she added.
On the other hand, Samuel Penado, assistant general manager for administration, said if no one else pre-qualifies, the selection committee will no longer evaluate the other proponents.
“Therefore, two months after the publication (for bidding in August), we can award the project to PrimeWater. By first week of October, we will know,” he added.
Gemora added that by the time the contract ends, Baciwa would have served 92 to 95 percent of the total population of Bacolod, from the current 54 percent.
To date, Baciwa has 57,000 water concessionaires.* (NDB)
