The Cebu Provincial Board has approved a resolution strongly demanding the Local Water Utilities Administration (LWUA) to desist from its “baseless partial intervention and take over” of the Metro Cebu Water District (MCWD).
The resolution, authored by PB Member Mike Villamor of Cebu’s fifth district, also called on LWUA to “respect the status quo to prevent confusion and disruption of the water district’s operation” especially that an El Niño is raging on.
The resolution was approved 𝘦𝘯 𝘮𝘢𝘴𝘴𝘦 motion during the regular session on Monday, April 14.
According to PB Villamor, the province has to step in as 75% of MCWD’s total water service connection spans across seven local government units under the Province of Cebu, which include the Cities of Mandaue and Talisay; as well as the Municipalities of Consolacion, Liloan, Compostela and Cordova.
The highly urbanized and independent City of Lapu-Lapu is also being served by MCWD.
“Ni step-in si Gov. Gwen ug ang Board Members kay nakita nato nga mas dako diay og population ang service area outside Cebu City,” BM Villamor told 𝐒𝐮𝐠𝐛𝐨 𝐍𝐞𝐰𝐬.
According to MCWD figures, there are 997,388 people living in Cebu City; while a whopping 1.6 million live in the above-mentioned MCWD service areas outside Cebu City.
According to Presidential Decree No. 198 which created the LWUA, it can only take over a water district such as MCWD in the event that MCWD incurs in delay or default in the payment of its loan obligations to LWUA.
Section 61(e) of PD 198, as amended by Sec. 31, PD 768, reads: “In the event of default by the local water district in the payment of principle or interest on its outstanding bonds or other obligations to the Administration (LWUA), the latter may, without the necessity of judicial process, take over and operate the facilities or properties of the district.”
However, Chairman Jose Daluz III, in a meeting at the Capitol, said they are not in default yet because there has never been a demand letter issued by LWUA, a requisite provided by law in placing the debtor in default.
Moreover, he revealed, their obligation to LWUA is only P13.7 million, with a monthly amortization of P50,000 — terms which according to him are very manageable on MCWD’s end.
Last March 15, LWUA implemented a partial takeover in MCWD and installed an Interim Board composed of LWUA officials Maria Rosan D. Perez, Engineer Noel A. Samonte, and Engineer Anabelle C. Gravador. The Interim Board then added Cebuanos Rey Asterio L. Tambis and Atty. Manolette Fel E. Dinsay, a former MCWD BOD member, to its membership
“Dapat lang nga mo-step in ta para maklaro, dili bitaw ta maglibog ang mga tawo, kay bottomline ani ang maapektuhan ang mga consumers man,” PB Villamor said. | BJR