(Images from PrimeWater and Baciwa websites)
BACOLOD CITY – The Villar Group’s PrimeWater Infrastructure Inc. will invest a total of PHP1.6 billion to improve the water supply system here during the first five years of its 25-year joint venture agreement with the Bacolod City Water District (Baciwa).
On Monday, the Manila-based utility firm took over the operation and management of Baciwa after the latter’s Board of Directors gave it the green light to proceed with the takeover on Friday afternoon, hours after the Regional Trial Court (RTC) Branch 45 dismissed the petition seeking to nullify the contract between the two parties.
Baciwa board chairman, lawyer Lorendo Dilag, said he believes that the deal — which is expected to bring in over PHP6 billion in investments from PrimeWater — is “necessary, practical and beneficial” for Bacolod.
Citing figures, Dilag said that the partner-firm will spend PHP293 million to develop the city’s water supply system for the first year alone.
Some PHP258 million has been allotted for the second year; PHP308 million, third year; PHP405 million, fourth year; and PHP418 million, fifth year.
“From this alone, you can see the benefits which will accrue for the City of Bacolod. At the end of the 25th year, PrimeWater will be spending a total amount of no less than PHP6 billion, which Baciwa cannot definitely get on its own,” he said.
PrimeWater vice president Romeo Sabater said after Baciwa officials received a copy of the court order on Friday, they called their team to a meeting and informed them that the board has passed a resolution allowing them to proceed with the takeover.
“We formally accepted the takeover of Baciwa. With that, officially, we will be here in the next 25 years,” Sabater told reporters here on Friday night.
The joint venture agreement, signed by both parties on July 17 this year, was set to take effect on Nov. 1, but on Oct. 27, RTC Branch 45 Presiding Judge Phoebe Gargantiel-Balbin granted the temporary restraining order (TRO) sought by Councilor Wilson Gamboa Jr. and his co-petitioners from consumers group Amlig Tubig.
After the hearing held on Nov. 9, the court issued a seven-page order dated Nov. 11, dismissing the Gamboa group's petition for declaratory relief and declaration of the nullity of the contract “for failure to state a cause of action”.
“In the present case, the petitioners as consumers did not specifically state what rights of theirs would be affected or prejudiced by the JVA. They simply alleged in general terms that their contractual rights as consumers would be affected,” the order stated.
The court denied as well the ancillary prayer for the issuance of a writ of preliminary injunction and lifted the TRO issued on Oct. 27.
Sabater, who was joined by legal counsel Robel Lomibao, said in partnership with Baciwa, PrimeWater will “address the water crisis the city is facing right now”.
At present, only 50 percent of residential or domestic consumers in Bacolod have access to Baciwa’s water system, he noted.
“The other half is getting water elsewhere. This is very inconvenient and very traumatic to consumers of Bacolod. We saw that need and that need should be addressed now. PrimeWater is capable of doing its services to address this concern,” Sabater added.
He also assured the Baciwa consumers that PrimeWater will not impose a rate increase in the next 12 months or until Nov. 12, 2021. (PNA)
