MWSS chokes water deal

WawaJVCo, the joint venture between Enrique Razon’s Prime Infra and businessman Oscar Violago’s San Lorenzo Ruiz Builders Group, continues to wait for the final approval of the project from the MWSS.

Wawa Dam in Rodriguez, Rizal has a huge potential in putting an end to the perennial water shortage during the dry season if only government moves fast.

Instead of offering a solution to the ongoing water crisis, state regulator Metropolitan Waterworks and Sewerage System (MWSS) has become the problem itself as it is now blamed for impeding the progress of a major project to augment supply.

The development work to ensure the delivery of 80 million liters per day (MLD) of water by 2021 that will augment supply and over 500 MLD in 2025 that will address the ongoing water crisis in Metro Manila may not push through as planned, according to the Enrique Razon-led developer Prime Infra.

The Palace earlier raised the possibility of asking Congress for extraordinary powers to address the water crisis that included the option of a takeover of water concessionaires.

Chief Presidential Legal Counsel and presidential spokesman Salvador Panelo said a declaration of a national emergency could be raised if the problem in water supply worsens.

The two concessionaires, Manila Water Company Inc. and Maynilad Water Services Inc., recently implemented rotational supply interruptions in Metro Manila that last anywhere from four to 18 hours, which will be in effect up to the dry season next year.

The project proponent of the Wawa Bulk Water Supply Project — WawaJVCo, the joint venture between Enrique Razon’s Prime Infra and businessman Oscar Violago’s San Lorenzo Ruiz Builders Group — continues to wait for the final approval of the project from the MWSS despite the urgent need for a solution to the water crisis.

Over seven months ago, Manila Water Co. (MWC) reported to the Philippine Stock Exchange that it entered into a memorandum of understanding with Prime Infra for the development of the Wawa Bulk Water Supply Project as a new water source development at no cost to the government.

After a series of technical workshops and review by the MWSS and the Office of the Government Corporate Counsel, the offtake agreement was signed by MWSS, MWC and WawaJVCO last 6 August 2019.

This was then followed by a series of public consultations all over the East Zone from 3 to 9 September 2019 led by the MWSS Regulatory Office. Project details were presented to the public alongside the tariff impact. The presentation was well received by the public because it was clear that this project is the most efficient and fastest solution to the present problem. Subsequently, the MWSS board approved the tariff.

WawaJVco continues to pursue the project based on the August agreement signing which it considered the takeoff point, but the MWSS continues to sit on authorizations needed to move the project forward.

“We are ready to move forward and have been proactively working with all stakeholders, public and private, to progress this project since 2018. Wawa is the fastest and least expensive water source development and comes at no cost to the government. We are hopeful that the final steps will be taken in the coming days to finally deliver a project of critical importance to the residents of Metro Manila,” Razon stressed.

“Curiously, the government seems to be desperate for new water sources, yet MWSS continues to drag its feet,” the industrialist noted.

WawaJVCo maintained that MWSS, along with the other regulatory bodies, must act quickly to avert the recurring water crisis. At the moment, the 80 MLD milestone for 2021 is likely to face a year of delay given that over seven months were wasted waiting for the final MWSS approvals.

WawaJVCo further expressed fears that, if not addressed immediately, the delivery of a new water source of this size in 2021 will be unlikely.

Razon said the Wawa Dam project is not an immediate fix, but a medium- to long-term solution that would be the fastest and most sustainable way to solve the water crisis.

“If we don’t act now, this will be a recurring problem.” he noted.

Presidential spokesman Salvador Panelo said the government is proceeding with the construction of the China-funded Kaliwa Dam to solve the recurring problem, but the Palace said another option being considered is special powers for the government to take over operations of water concessionaires.

“Yes, he said ‘I will assume control.’ So, that means it’s government takeover to solve the crisis, because he said, ‘If you cannot solve the crisis, then I will do it for you,’” Panelo quoted the President as saying.

“The provision of the Constitution is very clear. The President’s primary duty as head of state of the government is to serve and to protect the people. So, any situation arising that will endanger the safety of the people, then the President has to take over,” he added.

Panelo was referring to Article 12, Section 17 of the Constitution, which states that: “In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest.”