Letter to the Editor - MCWD is not a failure

Please allow us to react and/or make comments on the news article that came out in page 4 of your paper last November 7, 2006, with the title "Villarete calls MCWD a failure."

First, while we respect South Road Properties (SRP) manager Engr. Paul Villarete's opinion we would like to point out that it is better from him to verify the truth first directly from MCWD Board of Directors and top management before coming out with such a conclusion. He might be correct in saying that MCWD is only supplying less than one half of Metro Cebu's population but it is unwise from him to conclude that "MCWD is a failure," because he does not have ample knowledge and experience on how MCWD is able to continuously supply water to its concessionaries even without the help financially or otherwise, from the local government unit (LGU) nor from the national government. MCWD does not deny the fact that the water it is producing everyday is not enough to meet the daily demand of the metro Cebu populace. It is producing an average of 155,000 cu.m of water daily from its 104 ground water wells, and one surface water source (Buhisan Dam) to its 110,000 water concessionaries. This is the foremost reason why MCWD does not stop looking for more water sources by drilling more wells and accepting proposals and buying water from private water suppliers because it is conscious of its obligation to continuously provide its consumers with safe and potable water supply. The fact that MCWD is now serving 110,000 registered concessionaries, (From Talisay to Compostela) from 10,000 connections when the defunct Osmeña Waterworks System (OWS) was turned over to the MCWD on February 1, 1975, (more than 31 years ago), would negate the claim of Engr. Villarete that MCWD is a failure. If we are to consider the niche demand for MCWD water (those who are willing to connect to MCWD), approximately 70% of niche demand is now being served by MCWD.

Second, Engr. Villarete said that "there are three main obligations of a water district; to provide potable water, provide it efficiently, and provide it at the least cost. However, MCWD reportedly falls short in meeting these obligations." As to the water district's efficiently carrying out its functions and processes, MCWD's productivity has continuously been improving, recently achieving an average Systems Recovery Rate (SRR) of 72% from a low level of about 50% in the 1980's. The actual number of active connections per employee is now 192:1 as against the LWUA standard of 120:1. As to its price, MCWD is among the few water districts with a low minimum rate, which is P136.00 for the first ten cubic meters effective September 1, 2006. Other water districts have their water rates pegged at more than P200 for its minimum of ten cubic meters. The meritorious track record of MCWD, including its credible financial performance convinced the Development Bank of the Philippines (DBP) to approve a P1.25 Billion loan by MCWD at 9.5% interest per annum to pay off the outstanding loan with LWUA which range from 12.5% to 14% interest rate per annum.

Since its creation on February 1, 1975, MCWD has been trying its best to become a viable water utility firm with the vision to provide safe, potable and adequate water supply for Metro Cebu concessionaires. In its struggle to survive, it sustained itself free from financial support from the local government unit (LGU) like Cebu City, nor from the national government, but despite that, it was able to reap the following achievements.

(Sgd.) Armando H. Paredes
General Manager
Metro Cebu Water District