This came amid complaints from customers over the service provided by the firm.
In its statement on Friday, May 2, the Local Water Utilities Administration (LWUA) affirmed its full readiness to implement the order of President Ferdinand Marcos Jr.’s directive to address mounting complaints against PrimeWater Infrastructure Corporation.
LWUA Administrator Jose Moises F. Salonga emphasized that is mandated under Presidential Decree (PD) No. 198 to regulate and supervise all local water districts (LWDs).
“As a regulatory agency, LWUA is responsible for the development, oversight, and provision of technical assistance to LWDs to ensure the efficient, safe, and sustainable delivery of potable water nationwide,” the agency’s statement read.
In was also revealed that during a six-year period from 2013 to 2019, many LWDs around the country entered into joint venture agreements (JVAs) with private companies in their bid to address challenges in infrastructure, operations, engineering, and financing of water services.
“At the time, LWUA’s capacity to support the capital and operational needs of many water districts was constrained. Faced with these limitations, LWDs turned to JVAs as a way to access critical investments and improve water services,” said Salonga.
The agency was quick to clarify that while LWUA was not a signatory to these JVAs, it still retains full regulatory oversight of the LWDs, as reinforced by the amended Republic Act No. 11659 or the Public Service Act.
Following Marcos’ directive, LWUA said that it has issued a regulatory call requiring all LWDs with existing JVAs to submit their contract documents and the most recent annual performance reviews of their joint venture partners.
This review aims to identify posssible breach in service delivery standards, implementation gaps and non-compliance, and issues in enforcement and arbitration mechanisms embedded in the agreements.
“As regulator, LWUA’s role is to protect both the consumers and the water districts. At the same time, we are mindful of the legal rights and obligations of private partners under the JVAs. Striking this balance is key to ensuring accountability and improving service outcomes,” Salonga furthered.
In response to the issue, PrimeWater issued a statement indicating the company’s willingness to work with the government.
“We welcome any opportunity for an open and meaningful dialogue to resolve concerns and commit to cooperating fully with LWUA,” the company wrote.
It also added that they are currently “intesifying” their initiatives to address the requirements and satisfy the demand in challenged service areas.
“Rest assured that we remain fully committed to fulfulling our obligations with our partners to deliver the long-term improvements necessary for stable, reliable, and sustainable water in our service areas,” PrimeWater ended its statement.
PrimeWater operates in over 100 districts in multiple provinces around the country, including Batangas, Bulacan, Bohol, and Pangasinan.