PWRI: Cebu City to gain P35M yearly after MCWD deal nod

CEBU, Philippines -  Over P35 million would be added to the Cebu City government’s coffers annually as revenue if it allows Pilipinas Water Resources Incorporated (PWRI) to sell processed water to the Metro Cebu Water District and other institutions.

This is what PWRI vice president Edgar Sibonga presented before the City Council during an executive session yesterday.

The P35.2 million, he said, represents revenue from the Desalinated Potable Water (DPW), Waste Water and Non-potable water totaling 10,000 cubic meters a day it would supply to MCWD.

“It will allow MCWD to increase the number of households they are currently serving; it will help PWRI address its financial problems; and it will definitely provide additional revenues for the City of Cebu,” he said.

The City Council jointly referred PWRI’s proposal to the committee on utilities and the executive department for a thorough review.

“It (proposal) has to be checked so that it will keep us moving. We understand the urgency of your request and we want to help you,” City Councilor Margarita Osmeña told Sibonga.

Selling potable water to MCWD would not be easy financially for PWRI since an additional infrastructure amounting to P40 million is needed to connect PWRI’s pipelines from the South Road Properties to the Cebu Port Authority at the North Reclamation Area for MCWD to establish an “injection point.”

“You really have to invest in order to earn income,” said Sibonga.

At present, PWRI is supplying DPW to some of MCWD’s consumers, like those in Mactan Island; Barangay Labangon, Cebu City; SM Cebu; Parkmall; hotels and other institutions.

PWRI can generate up to 22,500 cubic meters of water a day and its capacity is expandable to 35,000 cubic meters a day.

Sibonga said selling processed water to MCWD will definitely help them recoup revenue losses caused by the delay in the operation of SM Seaside City at SRP. The mall is scheduled to open by September next year.

PWRI president lawyer Anthony Vincent Sotto earlier said they were in dire straits because of lost revenue, since their pipes and plant “are in place and the payments for the interest and principal or our loans are in effect (already).” 

“Not being able to generate the revenues as expected, we sat down with the banks where our loans are being sourced out and the only help they can offer to us is the deferment of payment for the principal but not the payment of the interest which is about P3.5 million a month,” Sotto said.

On May 28, 2010, PWRI inked an agreement with the city government for it to supply potable water and to collect and process waste water from all the locators of SRP.

The city owns 550 CMD desalination plant and a 3,200 CMD waste water treatment plant at the SRP.

PWRI and SM Prime Holdings have also signed an agreement for the former to supply reverse-osmosis-processed potable water for an initial volume of 1,000 cubic meters a day, expandable to 10,000 cubic meters a day. (FREEMAN)