An alliance of consumer groups has sought to nullify the joint venture agreement between the Bacolod City Water District (Baciwa) and the Villar-owned PrimeWater Infrastructure Corporation.
The petition was filed today before the Regional Trial Court by Amlig Tubig represented by its four convenors led by Councilor Wilson Gamboa Jr. just two weeks before the partnership formally takes effect on November 1, following a three-month transition period.
“Since it has already been consummated, this is our action. They did not inform us about it. They just called for a press conference to announce that they already signed the contract,” Gamboa said.
This afternoon, the councilor discussed the petition in a press conference held at the Negros Press Club building here, where he was joined by Fr. Chris Gonzales, head of Diocese of Bacolod Social Action Center, and former DIWA party-list Rep. Pepito Pico, also one of the petitioners.
Aside from seeking declaratory relief and declaration of nullity of the contract, the petitioners also applied for the issuance of temporary restraining and/or writ of preliminary injunction.
“Amlig Tubig filed this petition before the court in the exercise of our Constitutional right and to seek redress of our grievances against the actions of the Baciwa Board,” Pico said.
In the petition, the Amlig Tubig said the joint venture agreement is “disadvantageous to the government and the consumers, tainted with corruption and non-compliance with applicable and laws, (and) must be declared null and void ab initio”.
Gamboa tagged the deal as a “total takeover and handover” to PrimeWater.
“The agreement is just plain and simple privatization of Baciwa, with PrimeWater not having to bring additional water sources or supply nor to infuse additional capital,” he added.
Gamboa said some 24,000 city residents had earlier signed the petition opposing the deal.
Last July 18, Baciwa’s Board of Directors, lawyer Lorendo Dilag, and PrimeWater vice president Romeo Sabater announced the signing of the agreement, which they said will bring in PHP6.3 billion in total investments from the Manila-based utility firm in the next 25 years.
Dilag said the deal is “practical, necessary, and beneficial” for Bacolod because Baciwa has no financial capacity to fund an expansion project that would answer the need for more water supply.
In a recent statement, Dilag said the agreement is “clearly regular, valid and legal,” citing the Office of the Government Corporate Counsel Opinion 126, Series of 2020, which stated that Baciwa has complied with all the suggestions and recommendations of the OGCC in its contract review”.*NLG
