ILOILO CITY, Philippines—A prolonged water crisis in areas in Iloilo City was staved off on Tuesday after bulk water providers resumed their supply to the Metro Iloilo Water District (MIWD).
The consortium FLO Water Resources Inc. and Prime Water Ventures resumed operations after the MIWD paid about P3 million late Monday afternoon to cover part of its arrears to the water suppliers.
Danilo Encarnacion, MIWD chair, said the water district was also working out how to fully pay its P3-million arrears to FLO Water Resources Inc. and P6 million to Prime Water Ventures.
“We are working hard to prevent his unfortunate incident,” Encarnacion said.
The bulk water suppliers cut off their supply to the MIWD last Saturday over unpaid arrears rendering waterless thousands of consumers especially in Jaro district in Iloilo City.
The MIWD supplies at least 31,000 subscribers in Iloilo City and the towns of Oton, Pavia, Sta. Barbara, Cabatuan, Maasin and San Miguel.
The bulk water suppliers and the MIWD are embroiled in a dispute over the computation of volume being used by the water district and the corresponding cost.
Ilonggo business tycoon Rogelio Florete, chair and president of FLO Water Resources Inc., is demanding that the water district settle at least P100 million in accumulated arrears.
But the amount has been disputed by the MIWD.
Under its contract with the MIWD, the consortium provides 25,000 cubic meters of water daily through injection points. But only 15,000 cubic meters of water coming from the bulk water suppliers is used because of limitations in the MIWD’s transmission pipes.
Florete has insisted on the “take or pay” scheme with the MIWD paying for the volume of water being supplied by the consortium whether it is used by the water district or not.
But the MIWD has insisted on paying only for the volume of water that passes through its transmission pipes.
The Office of the Government Corporate Counsel (OGCC) had earlier issued an opinion that the contract had no take or pay provision but Florete asked for a reconsideration.
The Diocese of Iloilo of the Iglesia Filipina Independiente warned against proposals to privatize the water district amid the water supply controversy, saying this would only result in higher water rates.
“We are being held hostage by private firms and the government is reneging on its responsibility to provide adequate basic services to the people,” said Fr. Marco Sulayao, diocesan vicar general and officer in charge.