Dumaguete City Water District general manager Esperatu Dicen has warned that time will come when Dumaguetenos will experience rationing of water if DCWD will not do anything to arrest the increasing gap between supply and demand for water in the city.
Dicen said this after representatives from the Metro Pacific Water Investment Corp. revealed at the Sangguniang Panlungsod session Wednesday that it has already reached an agreement for a joint venture in financing, rehabilitation, upgrading, expansion, operation, management and maintenance of the water supply network and wastewater facilities of DCWD.
Dicen said that, DCWD is now short of 7,800 cubic meters of water every day and may reach 13,470 cubic meters after 10 years, if no improvement is undertaken.
Under the unsolicited proposal, in the first 10 years of concession MWIC will undergo water supply system rehabilitation, upgrading, expansion to the tune of P684,176,024, non-revenue water reduction projects worth P110 million, which include replacements of water meters in a three-year period at P160 million; waste water management at P111 million, and permits at P95,301,125, or a total of P1,000,477,149.
The concession agreement grants the joint venture company exclusive right to take possession of, use, and to upgrade the existing facilities; design, construct, install, and commission the new facilities; and distribute water to DCWD end-users and customers, and bill and collect payments for water services.
Director CleonicoFontelo, vice chairman of the board of directors, said the supply situation right now is on a flat line, prompting the board and management to consider various options, like a bank loan, or a public-private partnership.
Fontelo said, the bank loan approach is difficult to consider especially that the amount needed is in the vicinity of P1 billion, while the DCWD's asset is only P288 million. The maturity of 20 to 25 years will result in to high debt burden and will result in high water rates.
The board decided to go on a long term agreement under the PPP scheme because the investment recovery will be extended for a long time thatwould result in minimized water rates.*JG
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