MCWD seeks small bulk water suppliers

The Metro Cebu Water District (MCWD) is considering other bulk water suppliers, aside from the Ayala-led consortium water project, to arrest the alarming water shortage in Cebu projected in the next few years, as well as control the increasing water rates here.

"We have to look for other water suppliers. In Cebu City alone, only half of the total 80 barangays are served with water," said MCWD vice chairman Joy Young in an interview.

Recently, the MCWD board led by board chairman Juancho Montecillo has approved the terms and conditions of the agreement with the Ayala-Stateland consortium for the Carmen Bulk Water Supply Project, which will primarily source surface water.

If this project will be approved by the National Economic and Development Authority (NEDA), the consortium will supply an additional of 45,000 cubic meters a day to MCWD by 2008.

Young said MCWD will not wait for the Ayala-led project implementation on 2008, if this will be approved. As early as now, MCWD will start considering smaller bulk water supply proposals to supply the unserved mountain barangays in Cebu.

Young added that it is encouraged to have many players to supply bulk water to MCWD in order to bring down the cost of water.

Based on a study, conducted by Dutch government funded group called Water Remind, most of Metro Cebu water consumers are now paying high water rate per cubic at an average of P30 (plus).

Water Remind economist David Williams, in his presentation on economic and financial aspect on Water Resources Management Action Plan for Central Cebu, he said the current best price for water per cubic meter should be at the P12 level.

Large water consumers are even paying at high as P43 pesos per cubic meter. He mentioned that one of the reasons of the expensive water in Cebu, is lack of supply, although there are a number of possible resources for water that has not been tapped.

He mentioned that there are 67 possible ways of addressing water shortage this include among others, sourcing from ground water, surface water, and desalination process.

Metro Cebu's total water demand is estimated at 250,000 cubic meters to 300,000 cubic meters a day. Currently, MCWD is only supplying 50 percent of this demand, the rest is supplied by private deep well operators.

On the other hand, in a separate interview earlier with MCWD general manager Armando H. Paredes, he said that MCWD will have to prioritize first the Ayala-led consortium project, clarifying that MCWD cannot accommodate another supplier at this time.

"We can't afford to have so many suppliers in a certain time," Paredes said.

However, according to Young, MCWD is encouraging more suppliers in order to push competition, thereby bringing down the rates of water.

MCWD is set to impose another 12 percent rate increase on July this year. Another 12 percent increase will be implemented immediately after the Ayala project will be in operation in 2008.

Aside from Ayala consortium, Cebuano-owned Mactan Rock Industries Inc. has also submitted a proposal to MCWD to supply a total of 45,000 cubic meters a day via surface water, through its seven small projects combined for P18 per cubic meter a day price.