ILOILO CITY, Philippines — The supply of bulk water by the Metro Iloilo Water District to its concessioners in this city and neighboring towns had resumed over the weekend after the supplier—Flo Water Resources Inc.—and the water district itself signed a supplemental agreement.
The agreement, upon mediation by Iloilo Governor Arthur Defensor Sr, was signed by MIWD, represented by its board chair Danilo Encarnacion, and Flo Water chairman Rogelio Florete Sr.
Provisions of the agreement included the mode of payment of the remaining balances of the MIWD to Flo Water without waiving respective claims and positions of the parties on the “take or pay” issue of the contract.
The MIWD shall also accommodate the total volume of 15,000 cubic meters of water per day into its system, as provided for in the contract.
Upon execution of the agreement, the mode of payment by MIWD, without the need of a reminder from Flo Water, are as follows: P5 million for August; P5 million for September to be paid on the first week of that month; and another such amount for October on the first week of that month, as payments of water actually received—all without conditions and penalties or cost of water treatment incurred from February last year to January this year.
After the signing, the MIWD handed to Flo Water a P5-million check as its August payment.
Any penalties after January 2014 shall be resolved on the basis of the bulk water supply agreement, with the parties agreeing to formulate a protocol in order to have an accurate determination of water quality compliance.
If the Office of the Government Corporate Council resolves that the BWSA is a ‘take or pay,” the computation shall be made in accordance with such resolution, and that both parties shall adopt the generally accepted accounting principle. Also, the MIWD shall accept the total volume supplied and waive any penalty on the water delivered last August 9.
With regard to the water that was present or had stagnated in the 12- km transmission line of Flo Water (Pototan to Leganes towns), the MIWD will accept it and will not impose any penalty on it, the agreement states. In times that Flo Water interrupted its services to MIWD (August 9 to August 11), MIWD agreed not to impose any penalty to Flo Water for such interruptions.
Lastly, both parties shall endeavor for an early resolution of the motion for reconsideration of Flo Water, preferably before the end of August this year, and shall accept and immediately implement the resolution of the OGCC on the issue.
Meanwhile, Florete said Flo Water has already proposed to put up additional pipelines at its own expense so that the contracted volume of water will be delivered to MIWD. Presently, the MIWD could not accept the 15,000-cubic meter contracted water supply because its existing pipelines are smaller than those of Flo Water..
Encarnacion, for his part, said they will decide on the Flo Water’s proposal until end of August, while it still waiting for the decision of the Local Water Utility Administration and the Department of Public Works and Highways for assistance for a pipeline to be installed from Leganes town to Jaro in Iloilo City. (FREEMAN)