Due to leakage in pipes: MCWD loses P116.14 million income  

CEBU, Philippines —  Revenue of up to P116.14 million for the Metropolitan Cebu Water District was flushed down the drain due to leakage in several of MCWD’s decades-old transmission lines, a 2021 report of the Commission on Audit (COA) shows.

COA said MCWD’s percentage of Non-Revenue Water (NRW) to total water production in 2021 reached 29.04 percent, which is beyond the maximum acceptable rate of 20 percent set by the Local Water Utilities Administration (LWUA) Board.          

“The LWUA Board of Trustees Resolution No. 444, series of 2009, approved the reduction of the maximum acceptable NRW from the existing 25% to 20%, which is applicable to all Water Districts, to further improve efficiency and financial viability,” COA’s report reads.

NRW is water that has been produced and “lost” before it reaches the customer due to either or in a combination of the following: theft, evaporation, faulty metering, poor data gathering, and especially leakage.

All water districts are required to conduct performance audits of water meters periodically to ensure accuracy.

Depending on the condition of operation, the water meters should be tested for their accuracy after five years of utilization as mandated by LWUA Memorandum Circular No. 014-10 dated December 2, 2010.

 Leakages were traced to old main and transition lines that are already 30-40 years old. Some pipes underground were also reportedly damaged when they were hit during drilling in projects of the Department of Public Works and Highways (DPWH) and telco companies.

It reportedly took some time for MCWD to discover the leaks, which delayed repairs.

In a statement sent to The Freeman, MCWD said one of the factors that contributed to the high percentage of NRW was the damage brought about by Typhoon Odette in December 2021.

“When Typhoon Odette hit Cebu, MCWD delivered water using trucks to areas that did not have water due to the massive brownout. The consumers were not charged for the water delivered to them thus increasing the NRW.  Several lines were also damaged causing leaks and water wastage. There were also instances that MCWD’s lines were damaged by heavy equipment used in drainage projects of LGUs and by contractors of telecommunication companies doing underground line installation. Most of the time, the leaks caused were massive that took longer time to repair which means more water wastage,” its statement reads.

MCWD billed these contractors but they have yet to settle the amount that they have to pay for the damage.

COA said the NRW affected MCWD’s operational efficiency and financial viability.

“Had the NRW over maximum acceptable level for CY 2021 totaling 7,640,560.20 cu. m. been sold at P152.00 for every 10 cu.m. (minimum rate), the water district could have generated at least P116,136,515.04 from it,” COA said.

COA said MCWD has committed to reducing NRW through renewal/rehabilitation of the old pipelines, installation of pressure regulating valves, reviving district metering areas to determine leaks on a smaller scale, purchasing of ultrasonic flowmeter, immediate response, and repair of leaks, massive meter calibration, among others.

COA said additional preventive measures should be included to reduce the NRW rate to the acceptable maximum level of 20 percent or lower.

MCWD said it has taken key measures focused on non-revenue water reduction like active leak detection efforts and 24/7 leak repair.

“It has also earmarked a considerable amount for its pipeline renewal projects which include replacement of dilapidated lines.”

Union

Earlier, the MCWD’s Employees Union urged the public to join its call for MCWD Chairman Joey Daluz to step down due to the “critical condition” of MCWD’s corporate health and performance with the NRW skyrocketing to 30 percent at the end of 2021 and up to 34 percent in May 2022.

The union, headed by Abigail Almeria, pointed out that even one percent of the total water production that will be saved already spells millions.

“One percent nga ma-save nga ma-usik is equivalent to P25 million,” she said.

The union also said that back in 2018 under the old board, the NR was at 25.23 percent and was lowered to 23.66 percent. This was increased again in 2020 to 25.18 percent and to 30.05 percent in 2021.

The union said MCWD had no new policy, no new water sources, and no notable improvements but had large-scale spending.

Cebu City Vice Mayor Raymond Garcia, however, expressed his support for Daluz and said the latter should be given a chance to prove himself, especially that the COVID-19 pandemic prevented the district from implementing projects and programs.

Garcia also pointed out that the opening of the Lusaran Bulk Water project will be a milestone for the leadership of Daluz and the rest of the board.

The Lusaran Bulk Water project is expected to produce a good volume of water supply, but the union said earlier that had the rehabilitation and enhancement of lines been prioritized, there would have been no need for the water project.

A published article from the Asian Development Bank some years back states that “NRW is a good indicator for water utility performance; high levels of NRW typically indicate a poorly managed water utility” which the MCWD’s employees’ union has also been stressing out with the present board.

MCWD assures its consumers that it continues to find solutions to reduce its NRW, which translates to better service. – JMO (FREEMAN)