MCWD, Danao sign deal for 10-year water supply

CEBU, Philippines – The Metropolitan Cebu Water District yesterday inked a deal with Danao City for the latter to supply water to MCWD starting next year at P17.50 per cubic meter for 10 years.

MCWD General Manager Armando Paredes said that under the Memorandum of Agreement, the supply will be at a staggered basis at 5,000 cubic meters a day for the first sixth months. It will then gradually increase to 10,000 cubic meters a day for another six months and eventually at 15,000 cubic meters a day for the subsequent years.

The MOA was signed by Paredes and Danao City Mayor Ramonito Durano.

Cebu City Mayor Tomas Osmeña, who witnessed the MOA signing, said the deal is “very good and very beneficial for the water consumers,” as compared to the deals previously offered by other water suppliers such as Ayala Water, which offered water at P20 per cubic meter a day.

Currently, MCWD caters to a demand of 250,000 cubic meters of water a day for its franchise area. However, it only supplies about 125,000 cubic meters of water a day, certainly not enough for the increasing number of 800,000 to 900,000 consumers.

Paredes said they have since recognized the lack of supply of water that is why they never stopped looking for sources.

Aside from its external sources, Paredes said MCWD also engaged into in-house water source development by drilling wells that can reportedly produce up to 30,000 cubic meters of water daily.

Starting last year, MCWD’s wells in Canduman, Mandaue City were able to produce 4,000 cubic meters of water daily.

To further augment its services, MCWD also entered into joint venture agreements with private firms that would supply water to the so-called “thirsty areas,” seven of which are in Cebu City while two are in Mandaue City and Mactan, respectively.

These 11 injection points can reportedly draw up about 40,000 cubic meters daily.

Meanwhile, Paredes said the deal MCWD was working with Liloan and Compostela towns for possible sourcing of water is already “good as dead.”

As far as Compostela is concerned, MCWD said it could not agree with the water rate given by the town. The municipality reportedly initially offered a rate of P15 per cubic meter but later changed it to P22 per cubic meter.

MCWD has 14 wells in Compostela that remained not operational since 1993. The wells reportedly are supposed to draw out 10,000 cubic meters of water daily.

As far as Liloan is concerned, Paredes said MCWD cannot enter into a joint agreement with the local government unit but can only enter into an agreement under the Procurement Law wherein MCWD will be the one to operate the municipal wells therein. — Mitchelle L. Palaubsanon/JMO (THE FREEMAN)