PWRI requests MWCD deal nod

The Pilipinas Water Resources Incorporated is asking the Cebu City government to grant it authority to sell processed water to the Metro Cebu Water District to recoup lost revenue from its delayed deal with SM Prime Holdings.

If the city will accede to the request, the transaction would add to the city’s coffers approximately P18 million in annual revenue.

PWRI is planning to provide an initial volume of 10,000 cubic meters a day, which can be escalated to 20,000 cubic meters a day.

Lawyer Anthony Vincent Sotto, PWRI president, said delay in the operation of SM Seaside City at the South Road Properties since second quarter of last year is causing significant depletion to their revenue. The mall is expected to commence operation September 2015 yet.

“Not being able to generate the revenues as expected, we sat down with the banks where our loans are being sourced out and the only help they can offer to us is the deferment of payment for the principal but not the payment of the interest which is about P3.5 million a month,” he said.

“There is a desperate need for PWRI to generate revenues especially now that our plant and the pipes are in place and the payments for the interest and principal or our loans are in effect,” he added.

Sotto said SM Prime Holdings and PWRI have signed an agreement for the latter to supply reverse-osmosis-processed potable water for an initial volume of 1,000 cubic meters a day, expandable to 10,000 cubic meters a day.

At present, PWRI has the capacity to generate up to 22,500 cubic meters a day, which can be expanded to 35,000 cubic meters a day.

“Therefore, we can assure the city government of Cebu that the 10,000 cubic meters a day or even 20,000 cubic meters a day that we may sell to MCWD and other institutions would not affect our commitment to supply the locators of SRP,” Sotto said.

PWRI has inked an agreement with the City Hall last May 28, 2010 for the former to supply potable water and to collect and process waste water from “all the locators of SRP.”

Sotto said they prioritized the needs of SRP locators in terms of sufficient water supply, which caused PWRI “to cash out a little over P500 million during the period of May 2011 to June 2013.”