Capitol bars MCWI from using new Carmen wells
In this 2014 photo, officials of Manila Water Consortium Inc. inspect a new weir facility that taps river water in Carmen town. | CONTRIBUTED PHOTO
CEBU CITY, Philippines — The Capitol has prohibited Manila Water Consortium, Inc. from using its two new deep wells in Carmen town northern Cebu which the latter allegedly dug “without a permit from the municipal government.”
In a news release issued by the Capitol on September 2, 2020, the alleged digging of new deep wells constitutes a “gross violation” of the province and the MWCI’s joint investment agreement (JIA) which is currently under dispute itself.
According to the Capitol, MWCI recently proposed to dig two new deep wells in the town from where 2,500 cubic meters of water would be drawn daily. The water from the deep wells is said to supply the waterworks project of the municipality and will be sold at P8 per cubic meter
During a meeting at the Capitol last Tuesday, September 1, Carmen Councilor Merian Buot reported to Garcia that the digging for the new wells started in May without the municipal council’s approval. A similar digging, she said, was also done in 2017 without the council’s approval.
Under the JIA between the Capitol and the MWCI, the Capitol said, the firm would only be allowed to extract surface water from the Luyang River.
The JIA between the province and the MWCI inked in 2013 was for the creation of the Cebu Manila Water Development Inc. (CMWDI) which was supposed to supply water sourced from the Luyang River in the northern Cebu town.
Governor Gwendolyn Garcia and her legal advisers, upon her return as Cebu governor in 2019, had questioned MWCI for the alleged material breach to the terms of the 2012 agreement.
Following a series of correspondence between the province and the MWCI, Garcia in December 2019 announced that the Capitol would be ending its P1 billion JIA for the project.
Despite the termination of the JIA, the operation of the CMWD, the joint investment company which was born from the JIA, continued to operate. CMWD is estimated to produce some 35 million cubic meters of water daily which is supplied to the Metro Cebu Water District.
Garcia said she had yet to sit down with the chief executive of Manila Water to discuss the ways to move forward, although she clarified that there was no more saving the JIA.
READ: PB okays signing of interim protocol in managing Cebu Manila Water amid contract dispute
Last February, the Cebu Provincial Board authorized Garcia to sign the terms of reference for the interim protocol in managing the CMWD pending the finality of the dissolution of the investment contract between the province and the MWCI.
Under the terms of reference, the Capitol will be taking over the supervision over CMWD, including its finances.
According to the Capitol’s news release, the existing bank accounts of MWCI in relation to the project are set to be terminated while a joint account between the company and the Cebu provincial government will be opened in accordance with their interim agreement. The parties are set to meet for another discussion on Friday, September 4./dbs
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