THE Dagupan City Water District (DCWD) entered into a Joint Venture Agreement (JVA) with the private company Pamana Water Corporation in the middle of the pandemic in August 2020, a deal that surprised many water consumers and even the Sangguniang Panlungsod.

The JVA, effective for 25 years, only came to the fore when this was discussed during a virtual session of the Sangguniang Panlungsod on December 22, presided by Vice Mayor Byan Kua.

Atty. Fortunato Operario Jr. of the Office of Government Owned and Controlled  Corporations and one of the resource persons, defended the JVA based on the evaluation of the submitted unsolicited proposal and concurred with by the DCWD board of directors.

Among the arguments cited:

1. P.D. No. 198, the law that created water districts states that water districts are government owned and controlled corporations and as such may enter into contracts with any entity.
2. The National Economic and Development Authority’s guidelines favor the partnership agreement between the water district and its private partner.
3. Prime Water and Manila Water submitted their proposals but were both rejected.

He said DCWD will continue to function as a water district controlled by a board of directors, manned by the same set of officers.

Meanwhile, Councilor Michael Fernandez clarified that DILG Circular No. 2019-03 enjoins all local government units not to intervene with the operations of water district.

As to Councilor Jose Netu Tamayo’s query why DCWD did not secure loans instead from the Local Water Utilities Administration (LWUA) which has supervisory powers over all water districts, Operario said LWUA does not have the funds and water districts are prohibited from borrowing from banks.

Raul Castanio, chairman of the JVA Selection committee of DCWD, confirmed that the DCWD Board of Directors evaluated and adopted the proposal of Pamana.

In response to the question of Tamayo’s query about Pamana, Atty. Caroline Exconde, legal counsel of Pamana, said the company is 100 percent Filipino stock corporation,  registered with SEC with an authorized capitalization of P100 million.

The JVA will invest P1.8 billion over 10 years to improve the facilities of the water district, and Pamana’s share of DCWD’S yearly gross income will be 12 percent.

Exconde said DCWD is the second water district with which Pamana has a JVA. The first is Candaba Water District in Davao; also operates the water systems of Aliaga, Nueva Ecija and Pila, Laguna, San Leonardo in Nueva Ecija. Pamana also acquired RSBC Zone C of Sta. Rosa, Laguna.

Meanwhile, Roberto Umale Jr., Pamana chief operating officer, said while the JVA between DCWD and PAMANA is for 25 years, all the projects needed to improve the system will be implemented in 10 years.

Meanwhile, Rizaldy Mandap, DCWD general manager, allayed fears of DCWD customers that a water rate increase will be effected by JVA, saying there is no plan for it.

Meanwhile, Christy Augustine, personnel officer of DCWD, said that under the JVA, no DCWD-absorbed personnel regardless of status shall be removed from the service for the duration of the contract period except for cause. (Leonardo Micua)

Share your Comments or Reactions

comments

Powered by Facebook Comments