LUCENA CITY—The Quezon Metropolitan Water District (QMWD), which supplies potable water for Pagbilao town and the two cities of Lucena and Tayabas, is still in the process of evaluating joint-venture agreement (JVA) with Primewater Corp. and other private companies designed to upgrade its facilities and serve better its more than 45,000 concessionaires.
Lawyer Vicente Joyas, chairman of the board of directors of QMWD, gave the assurance that the water agency has not yet accepted any JVA with Primewater Corp. or any private firm in an effort to end speculations that it was already “bought” or “sold out” to the latter.
Joyas called a news conference last Monday at the Queen Margarette Hotel in the city poblacion here to clarify the issues surrounding the alleged deal with Primewater Corp., stressing the board has not yet approved the deal and the privatization of the water agency. He was seated beside QMWD General Manager Enrico Pasumbal, Assistant General Manager Lino Constantino and Production Manager Raymund Oliver to answer questions from local media practitioners.
“We are not selling QMWD. No one is buying it because it is not for sale, and the board has not approved its privatization,” Joyas said at the start of the news conference. He added the board has not yet accepted any JVA with Primewater, but is still evaluating unsolicited proposals.
“It is painful to hear news that we had been sold and that we look very interested in money,” Joyas said, adding he never talked alone with private entities, but always with his comembers in the board of directors, the policy-making body of QMWD.
Joyas, former president of the Integrated Bar of the Philippines, said any agreement will have to go through the process of evaluation by the Commission on Audit, the Local Water Utilities Administration, guidelines by the National Economic Development Authority, the Government Corporate Counsel, and will face the Swiss challenge.
A Swiss challenge is a process in public procurement when a public authority, which has received an unsolicited bid for a project, publishes details of the bid and invites third parties to match or exceed it.
Joyas added in case the Primewater proposal is considered by the QMWD board of directors, it will be challenged by other private entities.
Joyas added the main problem of QMWD is that its water supply could not meet the demand from its ever-growing number of water concessionaires. He said the 15 water wells the water agency has developed are not enough, so they are thinking of options to upgrade and modernize their facilities, management and operation.
He assured the media that any proposal and water- rate increase will still be up for the board for consideration and decision, and any JVA will be subject to rigorous negotiation.
“A rate increase is not enough to address our concerns in the QMWD so we are considering options and alternative solutions for our water consumers,” he said.
He said the QMWD water pipelines are 25 years old, and about P1 billion is needed for a complete upgrade of their facilities.
Joyas, also vice chairman of the Philippine Association of Water Districts, said the QMWD has a P147-million loan from the Development Bank of the Philippines and 2 percent of its 140 personnel is considering an optional retirement if a JVA pushes through with Primewater which, he said, has offered a 4 times rate increase for employees who will be opting for early retirement.
Primewater Corp. is engaged in construction and installation of transmission and distribution lines, development of water supply, and management and operation of water supply and septage management facilities.