ILOILO City – Bulk water supplier Prime Water Infrastructure Corp. of former senator Manny Villar has applied for a franchise to establish, operate and maintain a water supply system in this city.
Currently, the city has two water distributors – the state-run Metro Iloilo Water District (MIWD) and the privately-operated South Balibago Resources, Inc. (SBRI) whose limited area of service is Jaro district and covering an estimated 10,000 households and commercial establishments.
Prime Water filed its franchise application at the Sangguniang Panlungsod (SP). On Wednesday, the SP committee on public utilities chaired by Councilor Plaridel Nava held a public hearing.
The matter is a tough one to decide, said Nava, citing a Department of Interior and Local Government (DILG) opinion that only the National Water Resources Board (NWRB) can issue a water and sanitation franchise.
Prime Water is apparently taking the route of SBRI in securing a water distribution franchise.
In 2016 the SP voted unanimously to grant SBRI a franchise to operate in 34 waterless subdivisions and three barangays in Jaro for 25 years. It noted that while MIWD had monopolistic control of Iloilo City’s water system for decades, it was unable to provide adequate water delivery services to city residents.
MIWD questioned the franchise’s legality in court.
Councilor R Leone Gerochi sought DILG’s opinion on the matter and in March this year in Opinion No. 18 Undersecretary Austere Panadero wrote that only NWRB has the power to issue a water and sanitation franchise.
Panadero cited Presidential Decree (PD) 1076 or the Water Code of the Philippines – the law that governs the ownership, appropriation, utilization, exploitation, development, conservation, and protection of water resources.
“In effect, ang legal opinion nagklaro sang (SP) authority after the controversy sa Balibago,” said Nava.
MIWD’s case against SBRI’s franchise, however, is still pending in court.
Section 4 of PD 1076 stated that the application for a water permit “shall be filed directly with Board or deputized agents designated the Board…”
“Clearly, granting of water permits is within the competence of the NWRB, not in the local government units,” according to the DILG.
The participation of local governments is merely confined in the processing, posting and sending of notices of application/petition, it added.
As to the argument that the city government has the power to enact ordinances granting franchises anchored on Section 458 (a)(3) of Republic Act 7160 (Local Government Code) which states that the Sangguniang Panlungsod has the power to “enact ordinances granting franchise and authorizing the issuance of permits or licenses, upon such conditions and for such purposes intended to promote the general welfare of the inhabitants”, DILG clarified that such authority is in the nature of an exercise of police power.
“…(I)t behooves the local governments and their legislative bodies to act in conformity with the will of the State that is dictated through the legislative enactment of the Water Code of the Philippines and the Clean Water Act…,” stressed the DILG.
The Philippine Clean Water Act of 2004 or Republic Act 9275 is the law governing water quality management.
Nava believed the DILG opinion carried weight “because (the department) is supervising the local government unit.”
“Karun kon husto ang ila opinion kag file-lan kami kaso sang MIWD, basi mahambal ang Ombudsman nga ginhambalan na gid kamo sang DILG waay pa kamo magpati,” said Nava.
Even then, he is not about to stop holding public hearings on Prime Water’s franchise application.
According to Nava, he asked stakeholders such as Prime Water, MIWD, the Iloilo Business Club, Iloilo Economic and Development Foundation and consumers to submit position papers for his committee’s evaluation.
In its website, Prime Water described itself as a “solutions and services provider dedicated to uplifting the way of life of Filipino families and communities by giving them access to quality water, at the convenience and comfort of their homes, each and every day.”
It offers the following services:
* water system development and construction
* bulk water supply
* water supply improvement, rehabilitation and expansion
* septage management/PN
