Thus, said Cristino L. Panlilio as he lambasted the City of San Fernando Water District (CSFWD) during Wednesday’s Public Works Committee hearing in the sangguniang panlungsod session hall here.
Panlilio, president of the Balibago Waterworks System, Inc. (BWSI), is protesting before the SP the deal made by the CSFWD to the Villar-owned Prime Water (PW) for the operations and management of the former through a joint venture agreement with the latter.
Panlilio accused the CSFWD of violating government guidelines in its deal with PW and described the agreement as “irregular, onerous, ridiculous, and outrageous.”
He maintained the fi ve CSFWD directors – chairman Angelo “Loy” David, Fer Caylao, Tonette Orejas, Bener Aldana and Tess Tablante – cannot solely decide on the joint venture with PW.
“The common good is now endangered and threatened by what transpired in this supposed deal,” he said.
Outrageous requirements
Panlilio said among the outrageous requirements imposed by the CSFWD are the non-refundable P500,000 eligibility documents when the maximum fee prescribed by government is only P75,000; a P1.2 million bidding fee to those who will be eligible to challenge which is “illegal as nowhere can it be found in government joint venture guidelines”; and a P59.1 million refund fee if PW loses the challenge.
Panlilio added that there were also requirements for five completed PPP projects and 35 deep wells by the proponents which are “too constricting.”
“What we are fighting for is worth crusading against,” he declared.
Talks
Panlilio said BWSI initially made a proposal in 2013 to CSFWD to pursue bulk water supply through a deep well in the Pasudeco compound which was disapproved by the latter.
In 2014, Panlilio said, BWSI made to CSFWD a management and operations off er for a joint venture with the intent to formalize it in 2015.
But Panlilio said they were surprised in July this year when CSFWD chose to follow a “competitive challenge procedure” or “Swiss challenge” by entertaining an unsolicited proposal from PW, a private company, instead of the “competitive selection mode” or public bidding.
This is in violation of the National Economic Development Authority (NEDA) guidelines because when there are two or more bidders in a government joint venture project, it is the competitive selection mode that must be followed first, Panlilio said.
He said the process outlined in the joint venture guidelines of NEDA was not followed and this created an unfair advantage for PW.
He said the proposals of Manila Water and BWSI were totally ignored and the CSFWD decided solely that the PW proposal is the best.
“They did not even inform us that they have already chosen an original proposal (submitted by PW),” he said.
City Councilor Celestino Dizon, chair of the SP committee on public works, presided over the hearing where scores of protesters led by Marilou Uban, who led a citywide signature campaign to cancel what they claimed was an “irregular” process made by the CSFWD and Prime Water, were also present.
The venue of the hearing was primarily designated to an anteroom of the Heroes Hall but was moved to the larger SP session hall to accommodate more people.
False economy
Panlilio also lamented the publication in July of the CSFWD invitation in the Tribune newspaper which, he claimed, has very limited circulation in Luzon as well as in the Visayas as attested by their offices in the said regions.
He described the claim of the CSFWD of being cheap to publish in the Tribune as “false economy” considering that CSFWD is a multi-billion-peso project and it publishes its invitations in an “obscure newspaper.”
SP intervention
Panlilio said the SP should not be intimidated by the provisions of Presidential Decree 198 which grants local water districts autonomy from the local government unit.
Panlilio said the SP should intervene and cancel the deal on the grounds of “ultra vires,” Bulk Sales Law, the Constitution, NEDA’s approval and its tax implications. “These can be grounds for the SP to gain jurisdiction and to repeal the deal or cancel the JV and maintain the status quo,” Panlilio said.
“We believe that CSFWD is owned by the citizens of San Fernando who are represented by the city council and they should be consulted and approve the deal,” he added.
“The deal has the effect of dissolving the water district and this should be processed and approved in court,” he pointed out.
“How can the people of San Fernando get the best deal for their future monopolistic water provider from just two proposals? For saving a few thousand pesos, CSFWD has compromised the water rates and service of its consumers,” Panlilio lamented.
He reiterated his call for the SP to cancel CSFWD’s competitive challenge proceeding and pursue instead the competitive selection mode under reasonable eligibility conditions and publish this in a “truly national newspaper.”
Meanwhile, Councilor Noel Tulabut has moved for a moratorium on the CSFWD-PW deal which was duly seconded and approved by the chair.
