Manila Water to revive P8-B Pangasinan deal

RENEGOTIATION Nearly a month after terminating its bulk water supply agreement with the provincial government of Pangasinan, water concessionaire Manila Water Philippine Ventures on Monday says it is asking the province’s officials to return to the negotiating table for the possible revival of the P8-billion deal. —WILLIE O. LOMIBAO

LINGAYEN, PANGASINAN—The Manila Water Philippine Ventures (MWPV), a subsidiary of the water utility firm Manila Water Co. Inc., has begun reaching out to the provincial government of Pangasinan in a bid to revive the P8-billion concession agreement that was deemed mutually terminated in December last year.

In a statement on Monday, MWPV said the company and the province’s top officials remained open “to explore a partnership on water supply” even after the deal was called off reportedly due to what the company said was the provincial government’s “nonfulfillment of obligations.”

“This presents an opportunity to revisit the conditions precedent of the old contract and renew the partnership for the benefit of Pangasinenses,” MWPV said.

Representatives of the company had met with Pangasinan provincial officials last week, the Inquirer learned, but details of the discussion were not immediately known.

On Jan. 3, the MWPV, led by business tycoon Enrique Razon, filed with the Philippine Stock Exchange the termination of the concession agreement with Pangasinan, effective Dec. 31, 2023.

But Gov. Ramon Guico III said the provincial government was “not at fault” for the termination of the deal.

“The contract died a natural death, not because of any violation of any terms and conditions of the contract by the provincial government,” Guico said at a press briefing on Jan. 9.

The governor, however, said the provincial government was willing to meet with the water concessionaire for renegotiation and to trace the legal issues.

Legal issues

When reached for comment on Monday, Guico said he would look into Manila Water’s new proposal.

One of the provisions in the now terminated contract was for the MWPV to obtain and execute a bulk water supply and purchase agreement (BWSPA) from Villasis town and Urdaneta City on or before Dec. 31, 2022, under the first phase of the contract.

If the BWSPAs were not secured by that date, the concessionaire would not be compelled to commence construction by Jan. 1, 2023, and the two parties must renegotiate to arrive at mutually acceptable terms, according to Pangasinan provincial legal officer Baby Ruth Torre.

Records showed that the MWPV failed to obtain and execute a BWSPA for phase I.

The provincial officials also raised some legal questions over how the concession was contracted by the past administration.

Filtration

The 25-year contract was made during the administration of former Gov. Amado Espino III in January 2022 and was expected to generate bulk water through an infrastructure that would source water from the Agno River that traverses the provinces of Pangasinan, Tarlac and Benguet, using riverbank filtration technology, supposedly to serve 14 towns and cities in Pangasinan.

Pangasinan is one of the country’s most populous provinces, with a total population of 3,163,190 (as of the 2020 census) and one of the largest in terms of land area (545,101 hectares).

In recent years, the province has been considered a haven for investments.

“To support the province’s economic growth, both parties recognize that adequate water infrastructure is vital,” said Melvin Tan, Manila Water Non-East Zone chief operating officer.

Currently, the company has an operating unit in Calasiao, a central Pangasinan town, which was established through a 25-year joint venture agreement with the Calasiao Water District in central Pangasinan. INQ