Liquidity problem

Residents of Barangay Tumana in Marikina City are again facing a looming water crisis after the barangay council entered into a memorandum of agreement (MoA) that will effectively double water rates from about P30 to P60 per cubic meter.

The MoA, purportedly meant to address the barangay’s long-standing water supply problems, has drawn strong backlash from residents who say they are being unfairly burdened by the barangay’s mismanagement despite consistently paying their water dues on time.

“This is unjust because we have been paying our dues properly. The barangay’s debt mismanagement should not be passed on to the residents,” a resident said in a Facebook video.

Under the MoA, GBI, a third-party operator of Manila Water, will temporarily take over the management of the barangay’s water system for three months.

However, the deal comes with additional costs for households. Aside from a 100-percent increase in the water rate, each household will be required to pay a P1,200 guarantee deposit.

“First, we have a guarantee deposit of P1,200 per household. The rate per cubic meter will increase to P60, whereas it is currently at P30,” Tumana barangay captain Akiko Centeno explained in a separate Facebook video.

Left with no other option, Centeno said the barangay had to enter into a temporary agreement with a third party to assess and improve the water system.

“Right now, we have no choice but to bring in a third party. It’s actually better that they are here for three months to assess the situation and help us determine what really needs to be fixed and improved in the water system. The MoA is only temporary — just for three months,” she said.

The latest controversy comes just weeks after Barangay Tumana narrowly avoided a prolonged water shutdown during the Christmas season.

The barangay’s water debt reportedly ballooned to P37,192,199.98 after Centeno allegedly failed to remit payments collected from residents.

To immediately restore service, Mayor Teodoro fast-tracked the passage of an ordinance at the Sangguniang Panlungsod allocating P15 million to partially settle the Manila Water debt.