As city council calls for 'open bid': MCWD employees oppose Carmen Water project

The employees union of the Metro Cebu Water District, together with a consumers group, yesterday joined the opposition to the proposed Carmen Bulk Water Supply project and asked the MCWD management and the National Economic Development Authority to reject it.

This opposition, from within the MCWD itself, came when the city council approved a resolution asking MCWD to put the project to an "open bidding" as a corrective measure to an undertaking that has been marred with questions and objections from a number of sectors since.

The employees' group, citing disadvantages that project proponent, Ayala-Stateland consortium, might bring to the MCWD and consumers, also appealed to government officials not to drag politics into the issue because it would only worsen the agitated situation.

The MCWD should develop water sources in a service-oriented partnership with the public or government entity instead of getting into a private enterprise, which is profit-oriented, said the union.

Union president Victor Chiong said, "It is the union's position that, being an indispensable utility, the Carmen Bulk Water Supply project must be undertaken by MCWD or any governmental entity with adequate expertise and financial capability, and not by a private sector entity."

Chiong added that the involvement of a private entity would not solve the problem of additional but cheap sources of water for Cebu consumers, as it would only cause upward adjustment in rates.

Another group, the Patubig Alang sa Kabos nga Sugbo-anon, supported MCWD's need for additional water sources but it agreed with the employees' group in opposing the private sector's involvement on the matter.

Jaime Palinawan, PATAK official, said MCWD is capable of developing its own sources and it should ask support from government agencies and the public instead of letting in a private group to realize its goals.

The city council, in its regular session yesterday, approved a resolution of councilor Sylvan Jakosalem calling for the MCWD to "correct the situation" by holding a public bidding for water supply that would guarantee the lowest cost for consumers.

The Ayala-Stateland consortium proposal was an unsolicited one, which means that it was not a response to an open bidding but a proposal submitted to MCWD, thus other water suppliers could only challenge it with their own proposals, the council said.

The council contended that even if NEDA approves the Ayala-Stateland proposal, still the MCWD has the final say over the matter of water supply.

Chiong reminded that, once the project materializes, MCWD would no longer be allowed to draw, amend and implement its own Investment Plan because the Ayala-Stateland 40-year contract stipulates the latter full control of the plan throughout the period.

The council, in another approved resolution, expressed dismay over MCWD's hiring of the International Finance Corporation, as project consultant, even if this company has financial interests in Manila Water, a subsidiary of Ayala.

Chiong added that he was not convinced with the explanation of IFC that there has been no conflict of interest over the project. He said that IFC, being a stockholder of Manila Water and a member of the Ayala-led consortium, might still get involved in the Carmen project.

The council further approved a resolution urging NEDA to consider the views and opinions of the stakeholders that participated in the public hearing over the project last Monday.

The public has asked MCWD to get water that is affordable especially to the city's urban poor, as against the rate of the supposed water supply, through the Ayala-Stateland deal, that was pegged at P25.55 per cubic meter. --Wenna A. Berondo and Joeberth M. Ocao/RAE