Before the Neda approves the proposal: Tomas O to raise Carmen water issue to PGMA

Cebu City Mayor Tomas Osmeña intends to bring to the attention of President Gloria Macapagal-Arroyo the issues surrounding the proposed Carmen Water Project before the National Economic Development Authority (NEDA) approves the implementation of the proposal by the Ayala-Stateland Consortium. The NEDA Board is set to look into the proposal of the consortium, which has already been approved by NEDA's Investment Coordination Committee on August 14. The approval however did not suit well with Osmeña and other Cebuano officials, who believe that the people would be the ultimate losers in the proposal. The mayor said, he will raise the matter to Arroyo before the board convenes because the issue might no longer be properly tackled during the meeting, which he said, is practically ministerial.

Cebu Gov. Gwendolyn F. Garcia, who also expressed her concern about the matter, said that she is going to exercise her appointment authority in the MCWD. She however clarified that she would only do so once the term of a current member of the board expires. She also lambasted the faulty system in the MCWD. "The system in itself is faulty. There's a dire lack of accountability and lack of empathy because after all you don't vote for the board of directors of any water district, do you? They do not need to go back to the people and convince them that you are always for the public good," she told reporters in a news conference yesterday afternoon.

Garcia pointed out that the Local Water Utilities Act stipulate that the governor gets a right to appoint a board member if the concessionaires of MCWD coming from Cebu City would fall below 75 percent.

She also said that the province has been deputized already by the National Water Resources Board (NWRB) to accept and process all applications for water permits. She said she has already written a letter to Environment Secretary Angelo Reyes as well as to the NWRB in this regard.

Garcia revealed that there is now a move to make Cebu a pilot province on the devolution of the authority to grant water permits. She stressed that while she recognizes the urgent need for water in the Metro Cebu area, careful scrutiny of the present procedures now being drawn up by the International Finance Corp. (IFC) of the World Bank, which is helping MCWD, should not be set aside.

Some mayors of northern towns are pushing for the approval of the proposal of the Ayala-Stateland Consortium to answer the need for water.

The Cebu Provincial Board yesterday approved a resolution sponsored by Member Jose Maria Gastardo supporting the clamor of the mayors.

While there has been no question raised on the need for the project, the contention of those opposed to the proposal by the Ayala-Stateland Consortium is that there are certain provisions of the contract that might not be beneficial to the concessionaires. Osmeña contended that the local government heads that are supporting the project are "clouding the issue." He said, "when I am no longer mayor, I don't want the people to say that I didn't fight for them...that water is so expensive."

The insistence of one source for the said bulk water supply deal has raised a lot of questions when in fact there are several other sources of water which may be tapped aside from the Luyang River in Carmen town, Gov. Garcia said.

In addition, she said she have heard the clamor of other past interested bulk water investors for a public bidding.

And thus, the governor said this is the very reason why the province has mulled on looking beyond MCWD, the plan of which also entails the creation of a Provincial Water Authority, which is now covered in a resolution pending before the Provincial Board.

Once created, this body will oversee the creation of water systems in the various towns and cities of the province.

In this case, she said there is accountability whether in the post audit of the Commission on Audit (COA) or in the eventual accounting by the people during elections.

The Metro Cebu Water District emphasized that Carmen Bulk Water Supply project is very important as it would answer the needs of the people in the northern part of Cebu like Lapu-Lapu City, Mandaue City, Compostela, Consolacion, Cordova and Liloan.

If the project does not materialize, MCWD general manager Armando Paredes said that the water district's ability to improve its services would be affected.

Paredes added that the project would also benefit consumers in the elevated areas of Cebu City like Talamban, Lahug and Guadalupe, because with enough water, they would be able to process pending applications for water connection and improve their water pressure.

Data from MCWD show that it is only able to serve 17.8 percent of the households in Lapu-Lapu City, Mandaue City, Comspostela, Consolacion, Cordova and Liloan.

Aside from being able to serve the residents, water district's officials also said that the project will also ensure that locators at the Mactan Export Processing Zone will have access to cheaper and a more reliable water supply.

In the event the project fails when either the Ayala-led consortium will withdraw its proposal or the NEDA disapproves the terms and conditions of the contract, Paredes said that MCWD will have to implement its "action plans" to look for other sources of water to improve its supply. He added that they will be reviewing the studies submitted to them by the Water-Remind Project, evaluate it and look at the best strategic plan in next five years.

Paredes explained that if Carmen Bulk Water would be replaced by another project, it would take several years more because it would have to go through public bidding, conduct feasibility studies and other processes.

In fact, Paredes said that Carmen Bulk Water is identified as the fastest and cheapest to develop because it already conducted lot of studies and has already got the first pass approval of the NEDA. "We will have to start at zero again," he added.- with Wenna Berondo and Flor Z. Perolina/NLQ