MikeLigalig.com

LWUA Chairman Prospero “Butch” Pechay said Thursday that under the Philippine Water Crisis Act of 1995, no private or government–owned water distribution utility can operate without a congressional franchise.

Pechay was in Bohol Thursday to meet with mayors, vice mayors and water development stakeholders, discussing with them the many advantages of creating a local water district assisted by LWUA that can assure quality and efficient water supply.

The meeting was held at the Seg Lim Chinese Restaurant of the posh Bohol Tropics Resort, this city.

“I already talked with Salcon people like Dennis Villareal and I told them to assess the assets of BWUI. These assets will be paid and must be turned over to the local water district of the city,” Pechay disclosed.


The City Government of Tagbilaran, with the approval of the Sangguniang Panlungsod, has already submitted its intentions to convert its present water utility system into a water district.


BWUI is a private consortium under the Salcon Group of Companies and is operating a water distribution system acquired from the provincial government in a controversial joint-venture agreement signed in December 2000 during the incumbency of former governor Rene Relampagos.


The former Provincial Public Utilities Department (PPUD) previously operated both the water and electric power distribution system in the city but was taken over in the December 2000 JVA for the total amount of P150-million and a retained share for the provincial government of only 30%.


City Mayor Dan Lim and Gov. Erico Aumentado have expressed the desire to buy-back these twin public utilities.



LWUA SYSTEM
A local water district created by LWUA is a government owned corporation but will be managed by a board of trustees that will have a fixed term of 6 years.


Since it is a non-stock, non-profit corporation, it will purely exist for quality water service to the public, also benefiting the local governments from shares of income and relief from burden of loans, operational and maintenance expenses.


“Mas ma manage ug maayo ang water utility ug wala nang palakasan bisan tawo pa sa mayor,” Pechay further explained.


About thirteen mayors, some non-government organizations, planning officers attended the discussions presided by provincial Administrator Tomas Abapo, Jr. in behalf of the Governor who was still in Manila Thursday morning.


LWUA said it has close to P2-billion in funds available for local governments desirous to create their own water districts and these funds are available in easy repayment loans at only 9% interest and payable in a long term arrangement up to 25 years.


LWUA plans to create its own bank, to be named the WE Bank (Water-Energy Bank).


“Creating water districts with the assistance of LWUA is not all loans. The office can extend grants from 50% to 90% depending on the viability of the district area. Loan component is only about 10% of the total amount needed,” Pechay added.


Towns only need a resolution from their respective sanggunians, submitted to LWUA and the issuance of Certificate of Conformance is made in just one week.


“If you have the resolutions now, you can have your own water district right away,” the LWUA chairman assured.


“When I assumed office, I cut the bureaucratic red tape. When before, issuance of conformance certificates take one year, this time it will be only one week. I also declared that all intents for creations of water districts are now “viable” and there is no discrimination and this is pursuant to the LWUA mandate of creating efficient water systems throughout the country,” Pechay said.


LWUA records reveal that out of 1,400 LGUs in the country, there are only 500 that have created their own water districts. Pechay intends to serve these remaining 900 before his 6-year terms end as LWUA chairman in 2014.


“Don’t mistake this as having to do with my political career. I am not running in the May 2010 elections. In LWUA, I can serve our countrymen better that these senators that you have elected in 2007 that only wasted their time investigating matters like Katrina Halili video scandal that are private in nature, forgetting other priority concerns that are beneficial to our countrymen,” Pechay said in a separate interview with STANDARD, taking a pot shot at the present set of senators.


Pechay ran as administration senatorial candidate in 2007 and was No. 2 in total number of votes here in Bohol.


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