By CESAR JOLITO III
The Bacolod City Water District (Baciwa) has questioned PrimeWater Infrastructure Corp. over its alleged failure to disclose the sale of the company despite their existing joint venture agreement (JVA), considering that the partnership directly affects the delivery of water services to city residents.
In a media interview, Baciwa Acting Manager Engineer Michael Soliva said the water district was not officially informed about PrimeWater’s change of ownership.
Soliva emphasized that as PrimeWater’s partner under a JVA, Baciwa should have been notified, even at the level of initial advisories or informal communication.
He added that the lack of notice has raised serious concerns for Baciwa, maintaining that it has not received any formal communication from PrimeWater regarding the acquisition or its implications on the joint venture.
On Tuesday, December 16, business magnate Lucio Co, owner of Crystal Bridges Holding Corporation, fully acquired PrimeWater, confirming long-running reports about the utility firm’s change in ownership and setting the stage for a transition in water service management across several localities, including Bacolod.
Co and PrimeWater founder Manny Villar signed an agreement formalizing the acquisition, which is aimed at enhancing water supply services in all PrimeWater service areas nationwide.
Co continues to expand his business footprint beyond PrimeWater. He is also involved in Panama Water Corp. and has major interests in retail, renewable energy, real estate, and liquor distribution.
‘Abandonment’
Meanwhile, lawyer Cesar Beloria called on Baciwa and the public to first observe the performance of the new PrimeWater owner before placing trust in any agreement.
In an interview with dyHB RMN, Beloria noted that while Bacolod Lone District Representative Alfredo Abelardo Benitez has announced that the new owner has introduced fresh investments, similar promises were previously made by PrimeWater but were allegedly not fulfilled.
Beloria recalled that PrimeWater earlier committed around P1.6 billion in capital expenditures during its first five years with Baciwa but said residents have yet to feel significant improvements in water service.
He raised the question of whether the new ownership would be able to remedy what he described as violations under the existing agreement, adding that PrimeWater’s actions could be considered an act of abandonment.
Beloria further stressed that with a new owner taking over, proper legal procedures must be followed.
He explained that the current JVA between Baciwa and PrimeWater should be terminated, and if the Lucio Co Group intends to continue the partnership, the process must return to the beginning, in accordance with the law.
Water woes
Meanwhile, city officials welcomed the clarification on PrimeWater ownership as Bacolod continues to grapple with water service concerns.
Councilor Roberto Rojas, chairperson of the city council committee on energy and public utilities, said it is critical for the city to formally engage the new owner to ensure accountability and service improvements.
“This time, we will put more teeth into our policies to address the water problem. With a new owner, we will sit down with Baciwa and city officials to improve water services in Bacolod,” Rojas said.
Concerns intensified earlier this month after Bacolod Bulk Water Inc. (BBWI), PrimeWater’s largest bulk water supplier in the city, demanded payment of outstanding obligations and warned of a possible water interruption.
BBWI disclosed that PrimeWater-Bacolod had failed to settle its bulk water bills over several months, prompting the advisory.
Subsequent developments, however, eased fears of a supply disruption.
PrimeWater later settled its outstanding obligations, prompting BBWI to assure the public that there would be no interruption in bulk water supply and that normal operations would continue.
Earlier reports placed PrimeWater’s unpaid obligations to BBWI at around P11 million./CJ, WDJ