Leyte water tariffs stable for 2 years after Manila Water JV’s entry

WATER tariffs in Leyte will not increase during the first two years of the joint venture between the province’s water district and Manila Water and any subsequent increase will be subject to regulatory approval.

This was the assurance given by Leyte Metropolitan Water District (LMWD) amid what it called “unfounded claims and statements” about the partnership.

Manila Water said last week that it had received the notice of award dated Dec. 6, 2017 from LMWD for the implementation of the joint venture project for the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the province’s water supply and sanitation facilities and services.

In a statement on Sunday, the water district said its partnership with Manila Water had been forged in consideration of the best interest of its customers. It said both parties strictly followed the process called for under the National Economic and Development Authority’s 2013 revised joint venture guidelines.

It said despite the partnership’s “enormous amount of benefits to the Leyteños and Taclobanons, several misconceived issues have been raised regarding the project.”

The water district said some groups had issued warnings to the residents of Tacloban City of unnecessary tariff increases when Manila Water starts its operations.

It also said the City Government of Tacloban had raised “a distorted issue” surrounding the appointment of the current members of the water district’s board of directors.

LMWD said the partnership “is under the condition that there will be no tariff increase during the first two years of the project and that [Manila Water] will have to prioritize improvements in water services.”

“In such a case where [Manila Water] is allowed to make tariff adjustments after 2019, the same will be subject to the approval of the Local Water Utilities Administration (LWUA), being the tariff regulator for water districts. Moreover, any tariff adjustments will comply with the procedures, including, but not limited to, public consultations,” it said.

It added that Manila Water through the partnership, “will front load its investments to reduce losses” as it cited a non-revenue water target of “reaching, at least, a world-class level of 18%, increase water pressure to an appropriate level, and deliver potable water supply 24/7.”

The benefits of the partnership will include not requiring the water district to contribute monetary equity, better earnings opportunities for the government, and all assets invested by Manila Water being transferred to the water district at the end of the project, LMWD said.

The water district said it is aware that the Tacloban government is claiming authority to appoint the members of the LMWD board, pursuant to the Supreme Court Decision in the case “Rama vs. Moises, G.R. No. 197146 dated 6 December 2016.”

However, it said the application of the case to LMWD “is misplaced and erroneous.” It said all members of the board have valid appointments confirmed by LWUA.

“Further, all appointed members of the [board of directors] have fixed terms, and are expected by its customers to fulfill its mandate,” it added. —