Tomas to MCWD: Don't buy water from MWC

CEBU, Philippines - Cebu City South District Rep. Tomas Osmeña warned the Metropolitan Cebu Water District (MCWD) that entering a deal with the Ayala-led Manila Water Consortium (MWC) Inc. could lead to bankruptcy.

The Province of Cebu and MWC formed the Cebu Manila Water Development (CMWD) Inc. to develop the P702 million bulk water supply project from Luyang River in Carmen town.

MCWD is as among the prospective buyers of the bulk water supply at P13.95 per cubic meter for Metro Cebu.

During the 888 News Forum at Marco Polo Plaza yesterday, Osmeña said he has been against the unsolicited proposal of MWC to supply water to MCWD at P24 per cubic meter.

Osmeña also said MCWD will spend around P700 million to put a new pipeline to get the water from Lilo-an where Ayala has a development project in order to bring it to Cebu City.

Osmeña pointed out that Ayala will impose a certain minimum limit of water supply per day that has to be paid by MCWD even if it is not consumed.

“That will drive MCWD into bankruptcy because MCWD cannot absorb that water. If they are going to pump that amount to their existing pipe, they all blow up,” Osmeña said.

The MCWD management refused to comment on the matter saying it has not yet received a proposal from MWC.

“In its 37 years of operations, MCWD has always exercised prudence and diligence in reviewing contracts to protect the public that it serves,” said Charmaine Rodriguez, Public Affairs Department manager of MCWD, in a text message to The Freeman.

“If MCWD cannot pay that minimum amount, they can go bankrupt so Ayala will now own MCWD. You cannot have a situation where today, MCWD is distributing 130,000 cubic meters a day then by midnight they have to start paying for another 100,000 cubic meters,” Osmeña said.

Osmeña expressed fear that the deal might push through following the retirement of two MCWD Board Members before the year ends.

He said he worries for the people of Cebu because Cebu City Mayor Michael Rama and Governor Gwendolyn Garcia will control MCWD in appointing its board members.

The six-year term of MCWD Board chairman Eligio Pacana and member Joel Mari Yu will end this year.

“I give a lot of credit to the existing board of MCWD because if I had undergone a lot of pressure, the board of MCWD has also undergone a lot of pressure including the chairman at that time, Saul Montecillo. But he never sold out, I’m very proud of him, they could not penetrate,” Osmeña said.

Osmeña admitted that he is just expressing his fear even though Ayala and MCWD has not entered into a contract yet. – (FREEMAN)