ACWD chair Bernie Cruz and GM Rey Liwanag air side in a news conference. Photo by Bong Lacson
CLARK FREEPORT – The Angeles City Water District (ACWD) finally broke its silence on the controversies hounding them even as its chairman said he is ready to resign.
During a press conference here on Friday, ACWD chair Bernie Cruz said it’s okay for him to resign from his post because he does not need his salary of P7,000 from the water district.
“Gusto nila ako mawala dyan, ako naman e sabihin lang nila na pwedi ba na mag resign kana? Ok lang po ako hindi po ako atat na atat sa P7,000 sahod sa water district hindi ko naman kailangan ang sweldo ng water district,” Cruz declared.
Cruz recalled that the controversies started with the supply of bulk water by a private company, the AM Gatbonton Drilling Corp.
“We were summoned (by the city council) and they told us that AM Gatbonton was supplying water to the ACWD without a business permit from the city government. And that started it all,” Cruz said.
“They recommended the stoppage of the supply of AM Gatbonton because it has no business permit and the operation stopped,” he narrated.
Cruz explained that the private company is open in securing a business permit but the city government did not allow it in securing a permit.
He added that other than AM Gatbonton, there are other suppliers of bulk water for the ACWD like Clark Water and the Taguete Water Works.
City council summons
“We were summoned and we showed up in one or two hearings but we were told by our corporate lawyer that we don’t have to attend because we are not really mandated to be there,” Cruz said. “Even if we did not show up, there will be no contempt. We went there on our own volition in aid of legislation.”
But Cruz said they were badgered and the environment (in the city council) was hostile and because of the stress, the general manager had to be fitted with a pacemaker.
“It was hostile like a court. Hindi in aid of legislation. What we were looking was for a solution and not to make trouble,” Cruz pointed out.
“We were sent letters asking for our reaction, so I said wala naman kaming ginagawang masama.”
He denied there was conflict of interest with the transaction in a property at Montenegro subdivision.
It happened that the pumping station was located at Montenegro: “Nasa Montenegro yung tinayung bomba, but the owner of the subdivision is Tarzan Lazatin who sold it to an Australian. It happened that I have several properties there.”
Cruz admitted that the lot where AM Gatbonton’s pumping station was located was formerly owned by his daughter who then sold it to a private company, AM Gatbonton. “I have nothing to do with it. If I was the one who sold it to the water district, then there is conflict of interest because I am the chairman. But the transaction was between private to private,” he explained.
Cruz claimed that the ACWD even earned from the transaction with AM Gatbonton since the bulk water that was sold to them was only P10 per cubic meter which the water district resold at P22 per cubic for residential users and P27 per cubic meter for commercial establishments.
Planned joint venture
Cruz clarified that they are not selling the ACWD because it is owned by the government.
What they are proposing, he said, is a joint venture with Prime Water which is allowed by law citing a memorandum from the Department of Interior and Local Governments.
He said Prime Water and the Balibago Waterworks gave separate letters of intent “but we cannot entertain both of them because we had to entertain the first proposal before we can entertain the other.”
Cruz reiterated the DILG’s memorandum order for LGUs not to interfere with local water district operations published on Jan. 15, 2019.
DILG Secretary Edwardo Ano also made a remark warning LGUs “not to interfere with the operations of the water districts.”
Warning to LGUs
The DILG said cases will be filed if LGUs “continue to exercise control over local water districts ignoring the mandate of law …local officials should not poke their noses with the operations of local water districts because said water districts are autonomous by themselves.”
The DILG reminded LGUs that “the law states that local water districts are not under the jurisdiction of any political subdivision and would be supervise by the Local Water Utilities Administration (LWUA).
“Local officials should respect the autonomy of local water districts while giving their support and assistance.”
Ano pointed out that the only influence of mayors and governors have over water districts is “the appointment of directors and the approval of a resolution to form water districts.”
Cruz said it was also pointed out that “we are allowed to partner with private firms to provide water to local residents. Water districts may enter into PPP or joint venture agreements.”
He added that local water districts are allowed to sign contracts with private companies for the construction, operations and maintenance of water systems in LGUs.
“Masyadu yang masala na ela maka pakyalam” declared Cruz.
P800-M water disinfection
ACWD general manager Rey Liwanag said, “Wala pa po kaming ginagastos na ganyan.”
Liwanag explained that they are planning to pay the supplier on the cost of disinfection per cubic meter that comes out of their pumps: “Wala po kaming ginastos ni singko sentimos doon.”
Liwanag explained that there is a rate per cubic meter which the water district will pay at P3.50, the cost of disinfection, which will then be multiplied by about two million cubic meters, the average monthly consumption.
The water that comes out of the pumps is measured by a flow meter and treated by Hydro Optic Disinfection.
Liwanag said disinfection has many benefits which is a requirement of the World Health Organization which also requires the establishment of a water safety plan of water providers. He said the ACWD was able to pioneer and the first to establish a water safety plan in the Philippines, as confirmed by the WHO in Manila.
“The water safety plan is managing safe water from catchment to the consumer in all aspects up to the proper disposal of chemicals. There is a process on what to do so that you will not be able to pollute the environment,” Liwanag explained. “ACWD complies with the water safety plan and also wants it to improve the water supply for a safer supply of water in the city which has a high density.” Liwanag said.
Septage treatment
The ACWD general manager said a septage treatment plant (STP) where solid wastes from the septic vaults of the concessionaires will be treated is just waiting for its permit from the LGU. It was filed last December.
“We will dislodge for our concessioners. We are also mandated on the sanitation side that is the establishment and the construction of a septage treatment plant which is in compliance with the Clean Water Act,” said Liwanag.
He said the STP, which was constructed for two years, costs close to a billion pesos from the resources of the ACWD. It has already been given the green light by the Environmental Management Bureau.
“So, we were able to comply with the Clean Water Act. Ginawa po namin yon out of our own resources within a period of two years for less than P990 million. We can operate it but in the absence of an accreditation from the city government which we have applied for last December, hihintay pa po naming lumabas,” Liwanag said.
He pointed out that the Supreme Court has issued a writ of mandamus for Pampanga and Angeles City necessitating the establishment of STPs.
Liwanag said with the operation of the STP “we will dislodge the septic vaults of our 58,000 concessionaires within a period of three to five years.”
He said a cost of 7.8 percent of the water consumption will be charged per concessionaire within a period of five years if paid in installment.
Prime Water benefits
Liwanag said the ACWD has limited resources for its capital expenditures.
“Tayo pong mga water districts wala po tayong tinatangap na subsidy, be it from the local government or national, even from LWUA which can only extend loans with an interest rate and we pay,” he explained.
“But now our requirements are big and we cannot fund it. So, for this year we can finance our capital expenditures. But how about if we drill more wells and of course the many wells in the years to come until we can’t drill any more wells here in Angeles City because the recharge rate of the underground water that we extract is getting low?” he said.
He said as of now, they are already experiencing lower yields in pumping out water from the aquifer.
He said 10 years ago, the ACWD can pump 40 liters per second (LPS) but now it’s only 10 LPS in Sapangbato, or 15 or 20 LPS in other areas.
Liwanag said there is a study that within the next five years, the recharge rate will give lower yields, “so we have to stop the drilling of wells like in Metro Manila where it is not permitted. Their water supply comes from surface water.”
He said surface water will be the solution and “we can get that from the Pampanga River which is kilometers away from the cities of Angeles, San Fernando, and Mabalacat. “
Liwanag said that is where their joint venture partner can be of use because it will cost billions of pesos just to pump water from the river up to the cities where it will be treated to make it safe and potable.
No plan to file cases
When asked if they have a plan to file a case against the LGU, Cruz said: “Wala. Gusto namin sibilisado kami, kaibigan naming lahat. Kami po ay trabaho lang, kung makiki-usap lang po sa amin wala pong problema, pero hindi naman po kami kinakausap. Wala po kaming balak na makipag laban sa kanila, puro tayo Angelenos.”
