Operation of Carmen Water Facility: Capitol eyes ties  with Rio Verde
Last December 11, 2019, the province served a termination notice to Cebu Waters Development Inc. partner MWCI. The letter was received by MWCI on the same day and was later mailed to its Manila office.
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Operation of Carmen Water Facility: Capitol eyes ties with Rio Verde
Lorraine L. Ecarma (The Freeman) - December 15, 2019 - 12:00am

CEBU, Philippines — The Province of Cebu is eyeing at a prospective partnership with Rio Verde Water Consortium Inc. (RVWCI) in lieu of its terminated ties with Manila Waters Consortium, Inc. (MWCI) for the operation of the bulk water facility in Luyang, Carmen.

Last December 11, 2019, the province served a termination notice to Cebu Waters Development Inc. partner MWCI. The letter was received by MWCI on the same day and was later mailed to its Manila office.

This development in the termination of Cebu and MWCI's Joint Investment Agreement (JIA) now allows the Province of Cebu to entertain partners for the operation of CWDI, the Joint Investment Company (JICO) born out of the partnership agreement.

Sugbo TV, the official news site of the Cebu Provincial Public Information Office, reported that among the prospective partners Governor Gwen Garcia is eyeing is the Rio Verde Water Consortium of Palawan Governor Jose Alvarez.

To recall, it was originally Alvarez who gave the winning bid of P13.95 tariff rate per cubic meter and a project internal rate of return of 19.23 percent for the development and operation of the bulk water facility in Carmen during a Swiss challenge with MWCI and other water consortium companies

However, since MWCI gave the unsolicited offer to the province prompting the Swiss challenge, they were given the chance to match the winning bid, which they later did.

Sugbo TV further reported that Alvarez has also recently expressed his interest in taking over the Carmen bulk water supply.

"When they are disengaged, the governor will call me whether we can take over. I will look at it favorably," Alvarez said.

He said further that he is also looking at developing more bulk water sources in the northern and southern parts of the province to add to the 35 million liters of water per day sourced from the Luyang River.

As of now, nothing is set in stone yet as Garcia and Alvarez are yet to meet and discuss the possible partnership.

Garcia, as prescribed by the JIA, will also sit down with the chief executive of MWCI to discuss the parameters of the termination further and the province's share of revenues, which it has yet to receive.

The Province of Cebu severed the partnership it entered into with MWCI on March 2012 because of multiple violations committed by the company over its six years of operation.

Included is the non-remittance of the province’s shares of shares of the revenue and the drastic increase in project cost from P702,000,000 to P1,003,000,000. JMO (FREEMAN)

MANILA WATERS CONSORTIUM
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