LWUA
- city hall
deal questioned
The impending takeover of the
Local Water Utilities Authority (LWUA) of the Tagbilaran City Waterworks System
is criticized by some city officials and residents for its "haphazard approval"
and "undue haste".
Opposition
city lawmakers discovered recently that LWUA already published the bidding for
the city's bulk water supply consultancy services even as a memorandum of agreement
(MOA) has yet to be signed between the city government and LWUA Board Chairman
Prospero Pichay.
The
consultancy contract, worth P18 million, has not been made public with its Invitation
to Apply for Eligibility and to Bid (IAEB) merely published on the LWUA website.
"The
city government is suddenly in a rush to finalize the turnover to LWUA when in
fact there has been no inventory of all existing physical facilities, assets and
other properties of the city waterworks," minority bloc city councilor Zenaido
Rama told the Chronicle.
According
to Rama, the city mayor, who is pushing for the operation of a water district
under LWUA has not even presented to the Sangguniang Panlungsod a feasibility
study on its operations.
LWUA
is a government-owned and controlled corporation (GOCC) with a specialized lending
function mandated by law in order to promote and oversee the development of water
supply systems in cities and provinces outside Metro Manila.
| | | For
years now, the city waterworks division has struggled to improve its services
and expanding its coverage down to household connections in the city's 15 barangays.
Early
this year, the city government established the Tagbilaran City Water District
which will be placed under the LWUA.
Once
transferred to LWUA, the city's water supply will be operated and maintained by
the water district which will be managed by a five-man board of directors and
is classified as a government-owned and controlled corporation. |
RISKS,
HIGHER RATES
While
he favors rehabilitation of the existing city waterworks, Kag. Rama expressed
concern that once the city's water supply is provided by a corporate entity, water
rates would increase at the burden of consumers.
He
pointed out that most of the areas being served by the present city waterworks
system are the rural barangays where many residents belong to the low-income bracket.
Since
no feasibility study has been done on the water district operation under LWUA,
Rama said there are risks that the undertaking would fail.
"It
is understood that LWUA will extend a multi-million loan to the new water district
for it to viably operate as a local water utility. But we need the assurance that
it will become self-sustaining and could repay the loan. Or else water consumers
in the city might suffer should the water district impose high rates," Rama
explained.
According
to Rama, based on his own inquiries, out of the more than 600 water districts
established nationwide by LWUA, only about 20 percent have turned out successfully.
The
city lawmaker added that an exhaustive public discussion should be made regarding
the turnover.
DONE
DEAL?
The
city government purportedly conducted two public hearings on the creation of the
water district which Rama said was not well attended since it lacked publicity.
During
the Sangguniang Panlungsod (SP) session last Wednesday, Rama blocked the passage
of a resolution sponsored by Kag. Nerio Zamora II which would have granted authority
to the city mayor to negotiate for the transfer and turnover of the city waterworks
to LWUA.
In
fact, according to councilors belonging to the majority bloc, the resolution should
be adopted before October 1 since the mayor is scheduled to sign the MOA with
LWUA Administrator Pichay on said date.
"This
undertaking is highly questionable and irregular but yet my colleagues in the
majority are willing to railroad the passage of the resolution which is a requisite
of LWUA to seal the MOA signing," Rama stressed.
Rama
pointed out that a bidding for the project's consultancy services has been made
without even the authority coming from the SP to place the city waterworks under
LWUA.
"Even
before a MOA is signed, they proceeded with the bidding like the whole project
is already a done deal. That's a blatant procedural shortcut," he said.
The
SP will hold a special session tomorrow where LWUA officials are invited to shed
light on the matter.
There
is no inventory of the city waterworks system, a feasibility study and a draft
of the MOA, the lawmaker said.
The
public should be well informed how the operation of the water district will affect
the existence of concessionaires covered by Bohol Water Utilities Inc. (BWUI),
he said.
"As
far as I know, BWUI has an exclusive coverage of its service areas in the city
as stipulated in the joint venture agreement with the provincial government,"
he disclosed.
P18-M
CONSULTANCY
Posted
on the website of LWUA is the IAEB published by its Bids and Awards Committee
(BAC) to bid for the Tagbilaran Bulk Water Supply Consulting Services.
The
consultancy covers the preparation of conceptual design and master plan of the
water supply facilities of the city using viable resources and review of existing
hydraulic conditions in the service area.
The
contract duration which will be for six months, will be funded by LWUA with an
approved budget of P18 million.
Based
on the posted IAEB, the submission of letters of intent and application for eligibility
of bidders ended last September 14 and short-listed bidders will be known on October
1.
| 
