BY GEROME DALIPE IV
ILOILO City – The Metro Iloilo Water District (MIWD) said the request of the Iloilo City Council for copies of the documents relative to the planned water rate increase per cubic meter by Metro Pacific Iloilo Water (MPIW) needed clearance from the MIWD Board.
In a letter to Vice Mayor Jeffrey Ganzon, Alfredo Tayo III, MIWD general manager, said the MIWD Board directed him to refer the council’s request to their legal counsel before releasing the documents.
“Considering that MIWD is required to obtain the prior written consent of our joint venture (JV) partners, as stipulated under Sec. 29.1 of the joint venture agreement, we are required to seek approval of the Board of MIWD and its JV partners, after said consent was duly obtained,” said Tayo.
The requested documents are related to the company’s agreement with Metro Iloilo Water District (MIWD), project completion record, five and 10-year action plans, and their joint venture agreement.
During their session yesterday, the City Council ruled to refer the matter to the City Legal Office for its legal opinion.
The Committee of the Whole currently conducting an inquiry “in aid of legislation” on MPIW’s proposed P9.19 per cubic meter per month increase.
The probe stemmed from the letter of former councilor and lawyer R Leone Gerochi to Public Utilities Committee chairperson Councilor Romel Duron. He requested several documents from MPIW as references to their hearing before the committee hearing on June 10.
These documents are copies of the joint venture between MPIW and Metro Iloilo Water District creating the Metro Iloilo Bulk Water Corp., the joint venture between MPIW and MIWD creating the Metro Pacific Iloilo Water and the water supply agreement between MIWD and MPIW.
During the June 10 committee hearing, Angelo David Berba, MPIW chief operating officer, told the City Council that the rate increase from P20 to P29 per cubic meter would augment their investment in further improving the water situation in their service areas.
Berba explained that MPIW has been fulfilling its plans despite rising operational expenses due to the continuous increase in the inflation rate.
He said the MPIW had not raised the tariff rate in six years despite rising costs of bulk water supply rates, fuel prices, and increases in wages and manpower costs.
Berba noted the increases in five key expenditures since 2019, including bulk water price from P20.71 per cubic meter, up 33% from P13.81, and fuel price from P64.25 per liter up 34% from P47.92.
The material cost of 150-millimeter pipes also increased from P5,248, or up by 74 percent, from P3,022; the chemical for water quality from P5,000, rose by 25 percent from P4,000, and labor costs which are now P480, or an increase by 22 percent from P395.
Despite these costs, MPIW’s rates remain among the lowest in Metro Iloilo at P200 for the first 10 cubic meters (P20 per cubic meter). It cited the rates of other water utilities, such as South Balibago (P356.50), Lambunao Water District (P352), Banate Water District (P303), Dumangas-Barotac Water District (P283), Metro Roxas Water District (P252), Metropolitan Cebu Water District (P243), and Davao City Water District (P214).
Berba noted that the P9.19 per cubic meter per month increase they are petitioning with the Local Water Utilities Administration (LWUA) is their first since taking over in 2019.
The increase, initially planned for 2021, was delayed in consideration for its customers due to the COVID-19 pandemic.
Due to the pandemic, MPIW’s asset verification process was delayed, and only 36 percent (P612 million) of the P1.699 billion capital expenditure (capex) budget was utilized./PN
