Lacion town signs deal to improve water services

CEBU, Philippines - The municipal government of Consolacion and Abejo Waters Corporation signed an agreement to improve the delivery of water services to the different mountain barangays of the town.

The Memorandum of Agreement signed by Mayor Teresa Alegado in behalf of the municipal government of Consolacion and Gabino Abejo Jr., President and Chief Operating Officer of Abejo Waters Corporation.

Abejo Waters Corporation extracted water in Consolacion town and sold to Metro Cebu Water District.

Under the agreement,  the consumers in Consolacion town shall be given first priority by Abejo Waters Corporation in the allocation of water supply.

However, any excess of the water shall be served to the consumer of Metro Cebu Water District outside Consolacion.

The agreement further said that Abejo Waters Corporation shall inform the Municipality of Consolacion the actual location of the wells to be dug subject to existing ordinances of the municipality and further subject to public hearing and approval of the barangay concerned.

The Municipality of Consdolacion also agrees the Abejoi Waters Corporation  shall continue to pay P0.50 per cubic meter of water sold to Metro Cebu Water District from the existing bulk water system as royalty fees.

The agreement further stated that if there is an increase in the contract between Abejo Waters Corporation and MCWD the amount due to the Municipality of Consolacion shall likewise be increased by the same percentage of mincrement.

Aside from the royalty fees, Abejo Waters Corporation shall continue to procure the necessary business permit and pay such licenses, fees and local taxes due and imposed by the municipal government of Consolacion to all business establishments based on the existing laws and ordinances of the town.

Under the said agreement, Abejo Waters Corporation shall be given the right to develop, extract and distribute ground, brackish water and surface water sources.

Abejo Waters Corporation shall be granted the authority to build, own, operate and manage a Municipal Water System.

At present, Abejo Waters Corporation is extracting 7,000 cubic meters of water per day.

Abejo Waters Corporation under the said agreement is hereby given authority to build,develop an additional three wells and one observation well, and extract an additional 5,000 cubic meter of water per day within Consolacion.

The authority granted to Abejo Waters Corporation to build, develop, operate and manage a water system shall be for a period of 25 years. (FREEMAN)