THE Joint Venture Agreement (JVA) entered into by and between the Dagupan City Water District (DCWD) and the Pamana Water Corporation in 2020 is within the purview of the provisions of Presidential Decree No. 198.

This was disclosed by Raul Castano, chairman of the  Joint Venture Selection Committee of DCWD, who said that PD No. 198 states that “Local Water Districts are authorized to enter into JVAs and other similar contracts”.

Reacting to the column “Out of the Fire” of Atty. Gonzalo Duque in the Oct. 2-8, 2022 issue of The Sunday PUNCH, Castano added that pursuant to the 2013 NEDA JV Guidelines, the term and conditions of the JVA were thoroughly reviewed and evaluated by the JV-SC (Joint Venture-Selection Committee (whose members are employees of DCWD) and the Office of Government Controlled Corporation representative prior to its recommendation to the DCWD Board of Directors for approval.

He said the review and approval of the JVA was not merely decided by a single director or other politically inclined individual, because the agreement had undergone the legal process that included the review of the proposal, negotiation procedure, publications, competitive challenge, GCC and NEDA review and BOD approval.

The JV-SC, including the OGCC representative recommended the approval of the JVA after it determined that the terms and conditions are beneficial and advantageous to the operations and services of the DCWD, and to the employees, concessionaires and stakeholders, Castano added.

He added that NEDA, GCG and Department of Finance were furnished copies of the JVA.

“The JVA is a 25-year agreement from 2020 to 2045 both parties have distinct functions in this JV. The DCWD continues to perform its JV functions effectively, efficiently and in compliance with the service obligations in the agreement. Otherwise, the DCWD has the authority to impose penalties and/or rescind the contract,” Castano stressed.

Meanwhile, Margarita Navata, spokesperson of Pamana, clarified that the application of Pamana to the National Water Resources Board is an application of Certificate of Public Convenience to operate and maintain a waterworks systems within Dagupan City and not an application for a franchise, which is a license to operate.

Navata said the application continues to be heard by NWRB. However, some barangay chairmen led by Liga ng mga Barangay chairman Lino Fernandez submitted their opposition to the application.

Navata told the PUNCH that a Certificate of Public Convenience is a written authority issued to a water utility operator to operate and maintain water supply system, charge rate and provided water supply. (Leonardo Micua)

Share your Comments or Reactions

comments

Powered by Facebook Comments