ILOILO City – Another company is seeking a franchise to distribute water in this city – Manila Water Philippine Ventures (MWPV), a wholly-owned subsidiary of the Ayala-led water industry leader, Manila Water Company. Metro Iloilo Water District (MIWD) is expected to oppose the application like it did to the Villar-owned Prime Water Infrastructure Corp.
MWPV particularly wanted to operate in the districts of Mandurriao, Molo and Arevalo, according to Councilor Plaridel Nava, chairperson of the Sangguniang Panlungsod’s (SP) committee on public utilities.
MWPV submitted its franchise application December last year yet. Its officials recently complained it remained un-acted while that of Prime Water – which was filed only in recent months – was quickly approved by the SP.
“Ranking officials of Ayala told me their application was treated unfairly. Nauna pa ang Prime Water,” said Nava who assumed as chairperson of the SP public utilities committee only in October.
The previous committee chairperson was Councilor R Leone Gerochi.
Nava said he assured MWPV there was no such thing as exclusivity as far as the water distribution franchise was concerned.
MWPV’s franchise application would undergo the same processes as Prime Water’s, said Nava, “unless and until there is a court decision or jurisprudence that we (the SP) have no authority (to grant the franchise).”
During the Dec. 12 regular session of the SP, MWPV’s franchise application was approved on first reading.
“Next year ma-conduct public hearing,” said Nava.
He was anticipating opposition to the MWPV franchise application, according to Nava, similar to Prime Water’s.
The SP granted Prime Water a non-exclusive franchise for a period of 25 years to service all barangays as franchise area.
According to MIWD, the state-owned firm which already has the water distribution franchise for this city, Prime Water should instead seek a joint venture with it.
MIWD said it is open to joint ventures with private water companies because establishing new facilities would cost as much P12.8 billion.
LEGAL ACTION
Nava said he welcome the legal action that Metro Iloilo Water District (MIWD) could be taking over the Prime Water franchise.
“Waay kami nakulbaan…Gina-welcome ko ina para once and for all there will be a jurisprudence nga clear ang aton korte.”
MIWD could be pursuing criminal, administrative and civil charges against the SP and even Mayor Jose Espinosa III. The charges could be for usurpation of authority, graft, abuse of authority, and grave misconduct, among others, said MIWD legal counsel Roy Villa.
MIWD is maintaining that the city council has no authority to grant a water franchise.
“Iya na ‘ya function sang national government. Gin-warning-ngan na sila sang Department of Interior and Local Government (DILG) kag may ruling na dira ang Supreme Court consistently, not only in one case,” said Villa.
The DILG “warning” was actually an opinion on the water and sanitation franchise of South Balibago Resources, Inc. which the city council granted in 2016.
According to the DILG, only the National Water Resources Board can issue a water and sanitation franchise. He cited Presidential Decree 1076 or the Water Code of the Philippines – the law that governed the ownership, appropriation, utilization, exploitation, development, conservation, and protection of water resources.
If MWPV is granted a franchise, the SP may yet face another complaint from MIWD./PN
