The convenor of Water Watch Advocates avers that the JVA between Baciwa and Prime Water is highly questionable.
Wennie Sancho alleged in a press statement that the JVA doesn’t specify clear performance targets or standards for Prime Water to meet. The JVA doesn’t provide a clear mechanism for resolving disputes between Baciwa and Prime Water. Consumer protection is insufficient since the JVA doesn’t provide adequate safeguards for consumers leading to concerns about water quality and service.
Sancho said that no less than the Commission On Audit (COA) has directed the management of Baciwa to “seek clarification and reconciliation” regarding its joint venture agreement (JVA) with Prime Water which is owned by the Villar family to ascertain the legality of the deal. He adds that the COA stressed that the JVA was not within the mandate and charter of the district which is in violation of Sec. 30 (a) of PD No. 198 thereby “the legality of the contract could not be ascertained”.
Moreover, after nearly five years since the adoption of the JVA, consumers have still experienced substandard water quality including turbid water affecting their health and welfare. The JVA was not submitted for ratification by consumers therefore violating their rights to participate in decision making. The water supply has been inconsistent with only 47.45 percent of Bacolod City having a 24-hours water supply as of March 24, Sancho’s statement said.
Baciwa Prime Water JVA’s adoption of Sustainable Water Supply Management principles is questionable considering the concerns and criticism raised by consumer groups. A more detailed assessment of the JVA would be necessary to determine the extent to which Sustainable Water Supply Management principles are being followed, he said.
Sancho stressed a very crucial point that by entering into the Joint Venture Agreement (JVA) with Prime Water, Baciwa may be seen as delegating its mandate to provide water services to a private entity, which for Water Watch Advocates is “an act of abdication” on the part of Baciwa which was given the mandate to provide adequate water supply for the people of Bacolod City.
“Did the people of Bacolod City provide their consent for this delegation of mandate? Will Prime Water be held accountable to the people of Bacolod City, in the same way Baciwa was?” he asked.
This concerns the importance of transparency, public participation and accountability in decision-making processes that affect essential public sources like water supply, Sancho added.*
