Cebu Gov. Gwen Garcia signed an interim agreement with Metropolitan Cebu Water District (MCWD), represented by its general manager Edgar Donoso, for the procurement and sale of potable water by the Province to MCWD on Wednesday, Nov. 29.
This agreement came after bulk water supplier Cebu Manila Water Development (CMWD) decided to terminate its contract with MCWD for the supply of 35 million liters of water daily starting December 1, 2023, on the ground that the contract’s no-escalation clause is grossly disadvantageous to the firm.
With the substantial loss of bulk water supply, MCWD will have difficulty servicing its coverage area, beginning with Compostela, Liloan, Consolacion; and the tri-cities of Mandaue, Cebu, and Lapu-Lapu.
Under the agreement, signed in the presence of MCWD officials led by its chairman Atty. Jose Daluz III and provincial attorney Donato Villa, the Capitol will purchase bulk water at 35 million liters daily from CMWD and sell it to MCWD, so that water supply is not interrupted.
The Capitol does not look to make a profit in the deal, as it would purchase water from CMWD at P24.59 per cubic meter and sell it at the exact same amount to MCWD.
The agreement will only be good for 62 days, beginning December 1, 2023 to January 31, 2024. A long-term agreement is expected to be signed by both parties after the prescribed date.
CMWD, a joint venture firm between the Capitol and Enrique Razon-led Manila Water Consortium, collects and treats surface water from Carmen town’s Luyang River in northern Cebu and sells it to MCWD.
Its contract with MCWD signed in 2013, however, has a no-escalation clause which fixed the water price at a meager P24.59 per cubic meter until 2035, prompting CMWD to terminate the grossly disadvantageous contract. | IPA
