By CESAR JOLITO III
The Bacolod City council has approved a resolution urging the Bacolod City Water District (Baciwa) board of directors to terminate its joint venture agreement (JVA) with PrimeWater Infrastructure Corp., citing alleged material breaches in service delivery, investment commitments and operational performance.
Authored by Councilor Wilson Gamboa Jr., the resolution seeks the early termination of the 25-year JVA signed on November 1, 2020 between Baciwa and PrimeWater for the management of Bacolod’s water supply system, as well as the enforcement of accountability measures to protect consumers.
The resolution cited Section 5.1.2 of the JVA, which requires PrimeWater to ensure continuous and uninterrupted water supply by the end of its second year of operations in November 2022.
However, it noted that as of last month, several areas in the city continue to experience intermittent service and, in some cases, no water supply.
It also pointed to the alleged failure of PrimeWater to fulfill its commitment to invest around P6.8 billion for system improvements.
According to the resolution, no significant or tangible investments in water quality and system upgrades have been observed.
High water loss and infrastructure concerns
The measure further raised concerns over non-revenue water, which reportedly remains at around 45 percent.
This means nearly half of treated water is lost in the distribution system, resulting in consumers effectively paying for water that is not delivered.
It also cited around 900 reported leaks in the distribution network that remain unresolved, which allegedly contribute to water loss, contamination risks and potential public health issues.
Financial performance questioned
The resolution said PrimeWater continues to collect revenues from Baciwa operations, averaging about P60 million per month or roughly P720 million annually, with estimated net income ranging from P80 million to P100 million per year.
However, it alleged that these earnings have not been matched by corresponding infrastructure investments.
The city council stressed the need to protect Baciwa’s assets, estimated at P695 million, which were turned over under the JVA.
Citing alleged breaches, the resolution stated that Baciwa may opt to terminate the agreement, pursue damages against PrimeWater, and claim a six-percent performance bond penalty as provided under the contract for service obligation failures.
The council emphasized that the move is aimed at ensuring accountability and safeguarding the welfare of water consumers in the city./CJ, WDJ