Council rejects MOA for water supply

CEBU, Philippines - The Cebu City Council has “rejected” the proposed memorandum of agreement that was supposed to be signed between the city government and Abejo Builders Corporation for the extraction of water within the city, citing technical deficiencies.

The Committee on Laws, Ordinances, Public Accountability and Good Government headed by councilor Edgardo Labella recommended for the return of the MOA to Abejo and the City Hall’s executive department, saying the agreement is in “excessive brevity”.

According to the report, the MOA should include extraction of minimum required amount of water and the payment of the city’s royalty. The consequences of default will include the payment of penalty, interest, rescission of the agreement and other remedies of the innocent party, it added.

Abejo Builders wrote a letter request to the city council for the approval of the MOA and to authorize acting mayor Michael Rama to sign it on behalf of the city.

The MOA grants Abejo the right to develop and extract 25,000 cubic meters of ground and surface water from within the territorial jurisdiction of Cebu City. — Ferliza C. Contratista/WAB (THE FREEMAN)