BACOLOD City – Councilor Wilson Gamboa Jr. is not convinced with the reasons that the Bacolod City Water District (Baciwa) presented to support its proposed P40 water rate increase.
In a public hearing last week, Gamboa said Baciwa must provide the Sangguniang Panlungsod (SP) its financial statements in the last 10 years.
He also demanded justifications for Baciwa’s P500-million proposed loan at the Local Water Utility Administration (LWUA).
Aside from these, Gamboa stressed that Baciwa must explain where did the P537-million approved loan intended for pipeline expansion and reduction of non-revenue water supply go.
“What happened to this P537 million now?” Gamboa asked during the June 22 hearing.
He stressed that the financial statements will give “actual and real justifications” for the fiscal measures that the water district wants to take.
Carbon earlier wrote Vice Mayor El Cid Familiaran a letter explaining why the water district has to increase its water rate from P208 for the first 10 cubic meters to P248.
“The water district needs huge amount of capitalization to address the problem on water supply shortage, reduction of non-revenue water, pipeline replacement, and expansion of distribution lines amounting to P1.9 billion for a period of 10 years or approximately P190 million per year,” part of the letter read.
Carbon also stressed that Baciwa – even though government-owned – does not receive financial subsidy from the national government, local government or the LWUA.
The water district’s operation is “100 percent financed through the internally generated funds collected from water sales and other incidental income in relation to water sales, such as penalties and other service income, and collection from water line extensions,” Carbon said./PN
