Water project costs: Consortium willing to deal with MCWD

Despite some issues hounding the proposed Carmen Bulk Water Supply Project, the project proponent clarified it is willing to come up with a compromise with Metro Cebu Water District and is still dedicated to finalize the undertaking "for the benefit of the Cebuanos."

In a press statement, the Ayala-led consortium explained that MCWD's recent statement on the issue of development cost is a complete turnaround of its position because from the start, the water district officials have supported the argument on the development costs.

Manolo Reyes, general consultant of Manila Water and the consortium's spokesman said that in fact, MCWD has clarified the development cost and even cited a precedent of its refund.

On September 4, 2006, MCWD board chairman Juan Saul Montecillo wrote a letter to the NEDA-Investment Coordination Committee explaining the development cost, citing the LRT 1 as the precedent case.

Montecillo wrote, "We have noted that the Water Code of the Philippines requires due process and the payment of just compensation...the Philippine government has authorized the payment of such costs in special cases. The government has approved the payment of development costs to the original proponent of the Manila LRT Line 1 South Extension Project by way of settlement of all possible claims arising from a previously executed joint venture agreement."

Reyes reiterated that of the total refund that the consortium would like to seek, the bulk represents technical studies, legal fees, technical consultation fees, purchase of land, environmental impact studies and hydrological studies costs.

"The incidental expenses such as the mentioned 'donations in cash and in kind to towns' cover only a small fraction (less than 1%) of the total costs. These are part of normal costs in the course of developing a new project and duly receipted," he said.

He added that the records they submitted to MCWD are subject to audit and all their expenses are legitimate and validly supported by official receipts.

"What we are in effect requesting is just compensation for all the technical studies and costs incurred over the 10 years the consortium has dedicated to the Carmen Project. After all, most of the work done is proprietary information which we are prepared to share with possible challengers, so it is just fair that we be compensated for it," Reyes stressed.

Reyes added these are required and necessary legitimate business expenses incurred in pursuit of the project.

"We continue to have discussions with MCWD to find a compromise solution and are prepared to be reasonable. We are still dedicated to finalize this project for the benefit of the Cebuanos," Reyes said. - Wenna A. Berondo/BRP