Much ado about MIWD ‘step-in right’

BY PRINCE GOLEZ, Manila Reporter and GLENDA SOLOGASTOA

MANILA – Metro Iloilo Water District (MIWD) has no business taking over the facilities of its bulk water supplier, Flo Water Resources Iloilo, Inc., according to Rep. Jerry Treñas of Iloilo City.

How can it do so when Iloilo City’s sole water distributor has proven itself to be “unprofessional” in its water operations, the congressman said.

On Monday, Flo Water stopped delivering water to MIWD because of the water district’s failure to pay it.

According MIWD legal counsel Roy Villa, MIWD may take over Flo Water’s water treatment facility in Pototan, Iloilo, citing its “step-in right” stated in their bulk water supply contract.

Indi gani sila kabayad sa ila nga (They can’t even pay their) supplier, sila pa ma step-in,” said Treñas.

Villa confirmed that MIWD already sent a letter to Flo Water expressing its intention to exercise its step-in right.

On Tuesday, Treñas introduced House Resolution 1363 calling on the Local Water Utilities Administration and MIWD to begin the privatization process of the water district.

MIWD is being run like a sari-sari store, said Treñas, to the prejudice of at least 700,000 Ilonggos.

In MIWD’s contract with Flo Water, the water district may exercise its step-in right after 48 hours of non-delivery of water by the bulk water supplier.

Flo Water stopped delivering water to MIWD in the afternoon of August 11.

The 48-hour period was reached on August 13.

There is no point for MIWD to continue because “(running a water business) is beyond its capacity,” said Treñas. “It does not have the financial resources to begin with. Fixing its pipes will cost billions of pesos.”

Villa said MIWD is eager to invoke its step-in right. However, the water district is not rushing it in deference to Gov. Arthur Defensor Sr. who is working behind the scene to settle the financial dispute between the two parties.

Villa said MIWD is waiting for the outcome of the proposal that the governor presented to them and Flo Water.

He did not say what the proposal was. Defensor was also mum on the matter.

“Once they agreed, this will be put in writing so that the problem will not resurface again and again,” said Defensor.

He said he wanted the agreement to endure so there will be no more disruptions in the delivery of water to Iloilo City and towns under MIWD’s service area.

“The only way we can resolve the problem between MIWD and Flo Water is for us to underscore that this business is imbued with public interest. The utmost consideration is the people’s welfare,” said the governor.

Iloilo City’s Sen. Franklin Drilon favors MIWD’s privatization.

“The distribution system of our water utility is inefficient,” the veteran legislator said.

The process of privatization will take “six to eight months,” said Treñas./PN