water franchises –LWUA

A local government, unit such as the Iloilo City government, does not have authority to issue a water franchise.

“Based on the Supreme Court ruling, there is no franchise on water,” said Jeci Lapus, administrator of the Local Water Utilities Administration (LWUA).

This amidst the request for franchise by private distributor firm South Balibago Resources Inc. before the Iloilo City Council.

According to Lapus, that would be an “informal” franchise.

He pointed out, the Metro Iloilo Water District (MIWD), a government-owned and controlled corporation (GOCC), is already there to distribute water.

“Other officials should not be putting up competition with government-owned utilities,” Lapus said.

South Balibago has already been providing water to several private subdivisions in Jaro district of Iloilo City and is still in the process of expansion to other subdivisions.

But for Lapus, South Balibago is already “encroaching” into service areas already covered by MIWD./WDJ