SJDM in due diligence for new water partner after ending JV
By Sheldeen Joy Talavera, Reporter
SAN JOSE DEL MONTE, Bulacan — The city government said it is seeking a new water service provider after assuming control of a joint venture (JV) with PrimeWater Infrastructure Corp.
After ditching PrimeWater over its alleged failure to meet service obligations, San Jose del Monte (SJDM) City Administrator Rizaldy L. Mendoza said the local government is undertaking a due diligence to determine prospective interim operators.
“We have conducted thorough studies and collaborated with experts, including water service providers, legal consultants, and specialists in water operations,” he said.
The city government said the new water service provider must have extensive experience in delivering water services, proven technical expertise, and sufficient financial capacity and overall operational capability.
Mr. Mendoza said the city are currently in talks with Manila Water Co., Inc. and Maynilad Water Services, Inc., as well as the Lucio L. Co-controlled Crystal Bridges Holdings Corp.
The technical working group carrying out the due diligence has inspected operations of Metro Pacific Investments Corp. in Dumaguete City and Hanabana Water Corp. in Cagayan de Oro City and Bukidon.
San Jose del Monte took over the water supply operations previously managed by PrimeWater and the city’s water district.
In March, the city council issued an ordinance granting Mayor Florida P. Robes emergency powers to assume operational control of the facilities and assets of San Jose Water District and PrimeWater related to water supply and wastewater systems.
Following the takeover, Ms. Robes said the water district is expected to operate in a more transparent manner.
“Our position is clear: we will address and correct the deficiencies of both the San Jose Water District and PrimeWater,” she said.
Last year, the city officially terminated the 25-year joint venture agreement (JVA), citing inadequate and inconsistent water supply.
PrimeWater, a subsidiary of Prime Asset Ventures, Inc., serves over 1.7 million households and supplies about 500 million liters of water per day across more than 100 partnered water districts nationwide. It operates in Bulacan, Batangas, and Laguna.
The company is owned by Manuel Paolo A. Villar, the eldest of the Villar siblings.
Mr. Mendoza revealed that PrimeWater had only invested around P748 million in the city for water infrastructure, far below its pledge of P6.8 billion in capital spending.
“This means the problem lies in the infrastructure projects that were supposed to have been implemented from the first year up to the fifth year of the JVA that they had promised, but which did not happen,” he said.
He said at least nine projects have yet to be completed as per the joint venture deal.
Mr. Mendoza said the issues surrounding the joint venture’s termination arose from the system’s operations, and not for lack of water supply, noting the availability of 122.3 million liters per day of water.
