By Rjay Zuriaga Castor and Francis Allan L. Angelo
The Sangguniang Panlungsod of Iloilo City recommended that national government agencies in charge of water resources and rate setting to hold a hearing in Iloilo City regarding the proposed water tariff adjustment sought by Metro Iloilo Water District (MIWD) and Metro Pacific Iloilo Water (MPIW).
It also encouraged regular progress reports on the matter to keep the public updated and informed.
Vice Mayor Jeffrey Ganzon, chairman of the Committee of the Whole, said convening the hearing in Iloilo City will ensure greater participation and transparency for the residents.
“It will allow residents to directly present their concerns, feedback, and suggestions regarding the proposed water tariff increase,” he explained.
The recommendation was embodied in the committee report and was also in a resolution that was unanimously approved during the CITY Council’s regular session on Wednesday, July 31.
The council also recommended adequate public notice and facilitating of public participation.
In a statement, MPIW said a public hearing was already conducted in May where all stakeholders within their service areas were consulted and informed. The hearing was attended by Local Water Utilities Administration (LWUA) representatives as well.
MPIW, through MIWD, lodged their request for a rate hike with LWUA.
“MPIW will continue to communicate project plans for transparency and will be conducting a series of Information, Education and Communication initiatives in the communities starting this month,” it added
The City Council has also expressed satisfaction with the responses of the MPIW regarding their requests and even recognized its efforts to deliver better water services to the city.
“The need to adjust tariffs periodically is recognized; however, such adjustments must be done transparently to keep the city and consumers informed and should reflect actual costs incurred,” Ganzon stressed.
Earlier this July, the City Council asked MIWD and MPIW to submit relevant documents related to the proposed rate increase. The requested documents included:
-Joint Venture Agreement between Metropolitan Pacific Water Investment Corporation (METROPAC) and MIWD creating Metro Iloilo Bulk Water Corporation;
-Joint Venture Agreement between METROPAC and MIWD creating MPIW; and
-Water Supply Agreement between Metro Iloilo Bulk Water and MPIW
MPIW Chief Operating Officer Angelo David Berba said in a July 18 letter that MPIW does not have the legal authority to release the requested documents.
“As a product corporation under the Joint Venture Agreement (JVA) between MIWD and METROPAC, MPIW does not possess the legal authority to release requested documents,” he said.
Berba said MPIW will help in facilitating the information needed by the council upon approval from relevant authorities, ensuring pertinent and specific information is provided.
“MPIW seeks the committee’s understanding that certain details within requested documents may be sensitive under the Data Privacy Act and may contain confidential operational terms critical to the companies involved,” he added.
Under the joint-venture agreement, MIWD acts as the regulatory body overseeing compliance, while MPIW manages operational aspects, including distribution system maintenance, expansion, and rehabilitation.
MPIW emphasized its cautious approach in releasing documents related to the joint venture annexes, citing the need to protect confidentiality provisions stipulated in contracts.
Berba highlighted the company’s commitment to safeguarding sensitive information that could impact competitive advantage, violate contractual obligations, or compromise customer and employee confidentiality.
“Alongside compliance with existing data privacy laws, we are committed to meeting legal requirements for transparency in public disclosure,” Berba added.
Despite rising operational costs since 2019, including a 33% increase in bulk water prices, a 34% increase in fuel costs, a 74% increase in material costs, a 22% increase in chemical costs, a 25% increase in labor costs, and continuous increases in permitting costs affecting project implementation, MPIW has not adjusted its rates in six years.
Comparatively, MPIW’s current rates remain among the lowest in Metro Iloilo.
MIWD has officially submitted the tariff rate application to the Local Water Utilities Administration (LWUA), outlining detailed justifications for the proposed adjustment.
The application emphasizes the need for sustainable financial planning to support the already substantial budget for ongoing service improvements and operational efficiencies, ensuring improved water services for residents and customers.
“We have meticulously studied and consulted on this rate adjustment to balance the need for necessary improvements while avoiding overcharging,” Berba explained during the June 10 committee hearing.
MPIW’s proposed rate adjustment, initially planned for 2021 but delayed due to the pandemic, represents its first adjustment since taking over operations in 2019.
Berba also clarified that MPIW has its distinct identity from Metro Iloilo Bulk Water (MIBW) and that it is not a product of an expanded JVA contract or has a direct Bulk Water Supply Agreement with MIBW.
He explained that MPIW purchases its bulk water supply through MIWD and not MIB.
“Hence, MPIW is not the appropriate party to seek consultation and consent to release their JVA Annexes,” he stressed.
