BACOLOD City – The Bacolod City Water District (Baciwa) and PrimeWater Infrastructure Corp. signed a joint venture agreement to manage and operate the water district for 25 years.
“We worked for three years for its approval. We sincerely believe in the project. We were one in this,” said the chairman of Baciwa’s board of directors, lawyer Lorendo Dilag.
Dilag and PrimeWater vice president Romeo Sabater announced the signing of the deal in a recent press conference.
According to Dilag, the partnership is expected to bring in P6.3 billion in total investments from the Manila-based utility firm. It will formally start on Nov. 1 this year, following a three-month transition period.
He said signing an agreement with PrimeWater is “practical, necessary and beneficial” for Bacolod City. “Baciwa has no financial capacity to fund an expansion project that would answer the need for more water supply,” Dilag pointed out.
He noted that in the first five years, PrimeWater would pour in P1.6 billion for pipe laying and after that, it would invest P2 billion more for the installation of wells, delivery of more water supply, and employees’ compensation.
After 25 years, the assets put in place during the partnership will be turned over to Baciwa free of charge, Dilag added.
Sabater, for his part, said the project would begin on Nov. 1 and PrimeWater would already be in charge of the daily operation of Baciwa’s water supply system.
“This means the water source, operation, maintenance, distribution, customer service, payment, and collection will be handled by PrimeWater,” he added.
Responding to questions on water tariff rates, he said they would be “candid about it.”
“There will be tariff increases over the term of the joint venture. Not on November 1, but definitely there will be an increase along the way,” Sabater said.
Meanwhile, Councilor Archie Baribar, chairperson of the city council’s Committee on Energy and Public Utilities, hopes that Baciwa and PrimeWater could deliver their promise to the residents.
“I don’t know how we will live with this in the next 25 years. I hope that they could deliver.
Prime Water has started and submitted its proposal for the Joint Venture Agreement with Baciwa since 2016. (With a report from PNA/PN)
