MCWD to tackle with Mactan Rock issue of payments

The Metro Cebu Water District yesterday said it would negotiate the issue of payments with Mactan Rock Industries, Inc., a water supplier, so that the impending water problem in Mactan Island would be resolved.

MCWD spokesperson Tertuliana Andaya said the district would pay the water supplier the full amount of its bill every month, including the adjustment in rates that the firm had been demanding.

But Andaya clarified that the firm should show first the district the official receipts and documents on its power bills, increase in foreign exchange rates, and operating expenses, which have been the bases of the supplier in seeking to raise the water rates.

"When the Commission on Audit later asked us to liquidate our expenses, we have document to show," Andaya said, adding that MCWD even sent a letter to the firm last June to open up talks with officials of both parties over the issue.

Andaya said the firm's president and chief executive officer Antonio Tompar should have discussed the problem first with MCWD officials before bringing it to the media.

Two days ago, Tompar announced to the media his firm's plan to shut down operation of its desalination plants in Mactan Island in reaction to the MCWD letter for the payment of penalties due to the water district.

MCWD general manager Armando Paredes also said his office will not impose yet the P14 million penalty because the case is still pending at the Supreme Court, which has issued a status quo on the case.

MCWD asked the SC for a temporary restraining order to stop the Construction Industry Arbitration Board from enforcing an order that compelled MCWD to pay the foreign exchange recovery costs to the Mactan firm.

But Tompar said the firm has been operating at a loss already and MCWD's reduction in payment would result in more losses.

The Mactan firm supplies at least 50 percent of water to MCWD concessionaires and should the firm stops operating, Mactan Island would suffer scarcity of water, as a result.

Paredes countered that 56 percent of the time since the supply contract started in 1999, the Mactan firm's supply was short.

He said that starting in the next billing, MCWD would impose penalties against short delivery, aside from deducting 50 percent from the remaining bill until the previous P14-million penalties are recovered. - Wenna A. Berondo