MCWD finalizes contract with Danao for bulk water

Water district invokes Government Procurement Reform Act in dispensing with public bidding for the bulk water project in Danao City Project was stalled but original proponent, Mayor Durano, wants to fast-track negotiation as profit will subsidize water use of the City’s constituents Mayor wants to keep price of water in Danao City at P5, reportedly the lowest in the country

THERE will be no public bidding in the bulk water supply project of the Metropolitan Cebu Water District (MCWD) and the Danao City Government.

MCWD General Manager Ernie Delco told Sun.Star Cebu that they met with Danao City officials the other day and agreed that there will be no competitive or public bidding on the project because of the alternative mode of procurement under Republic Act 9184.

"Since this is a government to government procurement, this is considered an alternative mode of procurement allowed under RA 9184, which is negotiation mode specifically for Danao City," Delco said.

MCWD yesterday said it will set the price and other terms and conditions in the present negotiation of the bulk water supply project with Danao City.

Delco said that by next week, they will present it to the executive committee.

Once approved, it will go to the MCWD board chaired by Rene Mercado.

"So, before the end of February, we will have the final price and it's going to be fixed, uniform all throughout the contract duration," Delco said, referring to the price of the water it will purchase from the City.

Delco said that MCWD is “very much” interested in getting bulk water from Danao City.

Delco said that there was a Memorandum of Agreement (MOA) signed between the Danao City Government and MCWD a few years ago, but it was not completed because the Danao City Council failed to ratify the document.

Danao City Mayor Ramon "Nito" Durano III, in 2013, said that the City will sell bulk water from Tangon River in Barangay Sta. Rosa to MCWD at P25.

In a recent interview, he said that the profit will be used to subsidize the water supply of the City's constituents since they will continue to enjoy a price of P5 per cubic meter, which is the lowest in the country.

Records show that the bulk water project was conceptualized by Nito Durano during his last term as Danao City mayor in 2007.

At that time, his brother Ramon "Boy" Durano Jr. was vice mayor.

Both Duranos swapped positions for the term 2010-2013.

Boy suspended the project, prompting the Commission on Audit to issue a notice of disallowance because mobilization expense was not recouped.

Nito returned as mayor in 2013 and wants the immediate resumption of the bulk water project.

"I hope that MCWD will finally approve the supply contract this month," Nito said.

The original water supply agreement between MCWD and Danao was signed in 2009 yet.

Back then, the price of water was pegged at P17 per cubic meter with Danao City, based on the MOA, agreeing to supply between 5,000 and 40,000 cubic meters per day.