THE CEBU provincial government is looking at a possible partnership with Rio Verde Water Consortium Inc. (RVWCI) in place of the terminated agreement with Manila Water Consortium, Inc. (MWCI) for the bulk water facility in Carmen town. Sugbo TV, the official news site of the Cebu Provincial Public Information Office, reported that among the prospective partners that Governor Gwen F. Garcia is eyeing is the Rio Verde consortium of Palawan Governor Jose C. Alvarez. Last Dec. 11, the province served a termination notice to MWCI, its partner in Cebu Waters Development Inc. (CWDI). Ms. Garcia, as prescribed by the 2012 Joint Investment Agreement (JIA), will have to sit down with the chief executive of MWCI to further discuss the parameters of the termination, and the province’s revenue share, which it has yet to receive. The provincial government severed the partnership due to alleged multiple violations committed by the company over its six years of operation, including the non-remittance of the province’s revenue share and the drastic increase in project cost from P702 million to over P1 billion.

INTERESTED
Sugbo TV further reported that Mr. Alvarez has already expressed interest in taking over the Carmen bulk water supply project. “When they (CWDI) are disengaged, the governor will call me whether we can take over. I will look at it favorably,” Mr. Alvarez is quoted as saying. To recall, it was the company of Mr. Alvarez that gave the lowest bid during the Swiss challenge at a tariff rate of P13.95 per cubic meter and a project internal rate of return of 19.23% for the development and operation of the bulk water facility. However, MWCI, as the original proponent, exercised its right to match the winning bid. — The Freeman

RELATED ARTICLESMORE FROM AUTHOR