CDC set to give nod on Clark Water plan

CLARK Water Corp. (CWC) can proceed with its plans to upgrade a wastewater treatment plant subject to reduced tariff adjustment.

The Clark Development Corp. (CDC) and Clark Water reached “amenable terms of agreement” for the latter to carry out its compliance action plan.

State-owned CDC is slated to issue the notice to proceed to Clark Water on the condition that the tariff increase will be capped at P4.35 per cubic meter, which will be implemented on a staggered basis in the next four years.

As part of the terms agreed upon, the sewage treatment plant capacity in the Freeport shall be at 25 million liters per day, in compliance with the Department of Environment and Natural Resources’ Department Administrative Order 2016-08.

The final tariff adjustment, which may be lower than the P4.35 per cubic meter, will also be determined by CDC and CWC after the review and evaluation of the cost estimates and detailed engineering design to be submitted by CWC.

CDC indicated the future proposal of wastewater rate increase will only be considered if such increase is due to the proposed increase in the facility’s capacity and shall be subject to separate negotiations in accordance with the terms of concession agreement.

In a letter to Clark Water, CDC underscored the need to maintain “balance among all stakeholders and accept a tariff that is just for all locators in the Clark Freeport Zone with the end view of maintaining a competitive environment.”

A CDC official, who is not authorized to speak on the matter, said “the CDC is steadfast in its objective of protecting its locators and to ensure that Clark remains competitive. We don’t want our locators to bear additional burdens specially in the current situation.”