Metropac choices: Buy, lease or build

By LITO RULONA
with ANJANETTE VILLAMOR
Correspondents

THE Manny V. Pangilinan-owned Metro Pacific Water Investments Corp. has yet to decide how it would supply treated bulk water to the Cagayan de Oro Water District but its entry doesn’t necessarily mean that Rio Verde Water Consortium Inc. would cease raking in money in the city where the tap water demand is growing. And from the looks of it, the Pangilinan group would only be a third party and serve as a “middleman” unless it buys — if it still hasn’t —  Rio Verde or leases its facilities, a councilor disclosed.

Councilor Enrico Salcedo revealed this on Monday as he proposed city council resolutions that sought copies of the COWD’s contracts with Metro Pacific and Rio Verde.

Quoting COWD general manager Rachel Beja, Salcedo said Metro Pacific was looking into three options based on its joint venture agreement with the water district:

• purchase treated water and sell to COWD;
• lease existing facilities in order to supply to COWD; and
• build or purchase existing facilities to supply to COWD.

Rio Verde is the only known firm in the city that is equipped to siphon surface water into its Bukidnon plant, treat it, supply and meet the demands of COWD.

“These are the things stipulated in the contract with Metropac,” said Salcedo.

The three options, he said, suggest that Metro Pacific is still uncertain on exactly how it would supply COWD with treated water.

“We also understand that Rio Verde, which is established and has the existing facilities, will be its source,” Salcedo said.

The city council approved one of Salcedo’s proposed resolutions to officially demand from COWD a copy of its joint venture agreement with Metro Pacific so it could start an investigation in aid of legislation.

COWD has been reluctant to show the agreement, explaining that it cannot do it without the go-ahead of Metro Pacific.

The city council also approved another Salcedo-authored resolution to officially ask the Commission on Audit to submit to the city council a copy of its audit report and findings on the COWD-Rio Verde transactions.

The city’s legislature asked COA to immediately look into COWD’s agreement with Metro Pacific.

“Wala ako nakasabot sa gipirmahan sa COWD og Metro Pacific ilabi na gayud ngano nga i-undang ang ilang contract sa Rio Verde,” said Salcedo.

He said he could not understand why COWD would need another firm for a bulk water supply.

“Nakahatag na kini og dako nga problema sa consuming public,” Salcedo said. “Unsa na lang kahay mahitabo nga dili pa man established nga water provider ang Metropac.”

Salcedo said he was worried that consumers here would continue to be inconvenienced in the days ahead.

Councilor Teodulfo Lao Jr., chairman of the city council’s committee on public utilities, said COWD would need at least P2.4 billion in order to upgrade its facilities and improve the distribution of treated water in the city and areas in Misamis Oriental that it serves.

Lao said the main problem is on how to upgrading the COWD system, and not the supply of water.

According to Lao, COWD can only secure a P100-million loan.

“Meaning, dugay pa gyud sila makahatag og insakto nga supply sa tubig ngadto sa ilang mga consuming public,” he said.

Lao said he feared COWD would not be able to cope with the city’s growth, including its population.

He said, “The population is increasing every year, and they (COWD officials) admitted that they don’t have the financial capability.”

Lao added: “Nag-sign sila og contract with Metropac nga maoy mo-supply og dugang tubig ngadto kanila but again, ang ilang services dili kaya kay wala sila’y mga boosting pump nga maka-siguro nga tanan mahatdan og tubig.”