MCWD blocks new water system for upland areas

CEBU, Philippines — The Metropolitan Cebu Water District (MCWD) has opposed the application of the World’s First Water Ventures, Inc. to operate a Level III potable water supply system in several upland barangays of Cebu City.

The water district emphasized that while it supports initiatives aimed at providing reliable and safe water to underserved communities, such efforts must respect existing contractual commitments and applicable laws.

“Our position on the proposal of World’s First Water Ventures Inc. is not intended to prevent other water providers from serving areas that are not currently covered by our services. We remain supportive of efforts to expand access to safe and reliable water, particularly for underserved communities. Our position is simply that such efforts should be undertaken in a manner that respects existing contractual commitments and applicable laws and regulations,” MCWD General Manager Atty. John DX Lapid said.

Lapid issued the statement in reaction to Rene Borromeo’s opinion column on Banat News.

According to Borromeo, more than 8,000 residents in Barangays Pit-os, Bacayan, Talamban and Mabini have reportedly signed up for the proposed service, hoping the company’s entry will finally provide them with access to a clean water supply.

He quoted Engr. Mary Hazel Abasolo of World’s First Water Ventures as saying that the company’s service would uplift livelihoods in the upland communities. Abasolo also emphasized that the company is seeking a resolution of no objection from the Cebu City Council to support its application for a Certificate of Public Convenience with the National Water Resources Board.

The company has also cited a Supreme Court ruling stating that water supply is not the exclusive right of MCWD.

Lapid, in a separate letter dated August 4, 2026 addressed to the City Council, said that their evaluation of the proposal, which covers Barangays Pit-os, Bacayan, Talamban, Mabini, Cambinocot and Paril, the World’s First Water Ventures, Inc. will tap water source under existing contract with MCWD.

Lapid emphasized that MCWD has “no objection” to the company serving Mabini and Paril, provided it uses a lawful and independent water source not tied to existing commitments.

MCWD said the applicant failed to identify its own water source.

Corporate records reviewed by MCWD revealed interlocking directors and officers between World’s First Water Ventures, Inc. and JE Hydro & Bio-Energy Corporation, as well as a shared principal business address in Cagayan de Oro City.

MCWD concluded that there is “a reasonable and substantial basis to believe that World’s First Water Ventures, Inc. may obtain its water from [JE Hydro’s Lusaran facility],” which is already covered by the Lahug Bulk Water Supply Contract.

The contract prohibits JE Hydro from supplying water to any entity other than MCWD and obligates it to deliver water to designated drop-off points, including Barangay Pit-os.

“Allowing a related corporation to supply the same area using water obtained from JE Hydro would merely duplicate the existing contractual arrangement and permit JE Hydro to circumvent its pipelaying and exclusivity obligations to MCWD,” Lapid stressed.

He warned that such an arrangement may constitute interference with MCWD’s contractual rights under Article 1314 of the Civil Code.

MCWD asked the Council to defer action until World’s First Water Ventures, Inc. discloses its exact water source, submits agreements with JE Hydro, proves its independence from JE Hydro’s facilities and complies with National Water Resources Board requirements.

The water district also rejected the applicant’s reliance on the Supreme Court ruling in MCWD v. Adala (2007), clarifying that it is not asserting exclusivity but enforcing a valid contract.

“The Adala ruling does not authorize JE Hydro or a related corporation to disregard or circumvent contractual obligations voluntarily undertaken in favor of MCWD,” Lapid noted.

“MCWD respectfully opposes the issuance of a Resolution of No Objection insofar as the proposal apparently relies upon water supplied by JE Hydro and covers areas included in JE Hydro’s existing contractual obligations, particularly Barangay Pit-os,” Lapid concluded. — /FPL (FREEMAN)