THE Joint Venture Agreement (JVA) entered into by the Dagupan Water District and the Pamana Water Corporation in early December last year was reportedly given the green light by the Department of Justice through the Office of the Government Corporate Counsel (OGCC).

This was disclosed by lawyer Elpidio J. Vega, government corporate counsel, said the DOJ review practically affirmed DCWD’s eligibility to enter into JVA with Pamana.

OGCC had affirmed the following after a thorough evaluation of the required documents:

1. That the DCWD as a government-owned and controlled corporation established and organized under Presidential Decree No. 198, has the power and authority to carry on its present business, to own property and assets, to enter into agreements and incur obligations provided for in its charter. DCWD has the corporate power and authority to execute and deliver the JVA and perform its terms and conditions;
2. That the DCWD-Joint Venture Selection Committee strictly adhered to the procedures prescribed under the 2013 Revised NEDA JV Guidelines,

Lawyer Vega said Pamana also complied with the technical and eligibility requirements per evaluation of JV-SC (Joint Venture Selection Committee), that pertained to the detailed negotiations that both parties mutually agreed to the terms and conditions of the proposed JVA which are found to be advantageous and beneficial to the operations and services of the DCWD.

According to Vega, DCWD General Manager Rizaldy Mandap and JV-SC Chairperson Raul Castanio certified no interested private proponent signified intention to participate in the competitive challenge when the JV-SC invited other participants for competitive challenge.

Two other water companies —Manila Water and Prime Water—submitted unsolicited proposals but were not accepted by DCWD since their proposals were found to be disadvantageous to the operations and services of DCWD’s concessionaires, stakeholders and employees.

The DCWD-JVSC recommended to the DCWD Board to award the project to Pamana which recommendation was approved on Oct. 20, 2020 as per Board Resolution 0830-20.

JC-SC chairperson Castano said that realistic and tangible projects such as additional pumping stations to improve water pressure, piped replacements, piped laying projects will be pursued to increase further water production and distribution throughout the city within – seven to 10 years of the agreement.

Pamana also offered to pay in full all existing loans of DCWD and all future water rate increases shall be in line with the corresponding implementation of the projects and subject to the approval of the Local Water Utilities Administration.

There will be no abrupt and unreasonable hike in water rates and all DCWD personnel regardless of status shall be absorbed by Pamana except those who will voluntarily retire. (Leonardo Micua)

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