Palace Intervention Sought to Cancel PrimeWater Joint Ventures Over Service Failures

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Manila: Bayan Muna Party-list and consumers of PrimeWater Infrastructure Corp. have raised serious concerns over the operations of the Villar family-owned private water utility firm. On Thursday, they filed a formal complaint at Malaca±ang, urging the cancellation of all joint venture agreements (JVAs) between PrimeWater and local water districts across the Philippines, citing widespread service failures and legal violations.

According to Philippines News Agency, the complaint, addressed to President Ferdinand R. Marcos Jr., highlights issues such as frequent water interruptions, poor water quality, high rates, and unresponsive customer service in multiple areas, including San Jose del Monte in Bulacan, Bacolod City, Quezon, Cavite, and Bukidnon provinces. Bayan Muna alleged that these JVAs, mostly established during the Duterte administration, are disadvantageous to the public and contravene provisions of Presidential Decree 198, which grants operational control of water districts to their respective boards.

Furthermore, the group cautioned about potential breaches of the Constitution and public-private partnership regulations. They claimed that consumers are facing rising costs despite deteriorating service standards, noting that water rates in San Jose del Monte surged from PHP280 to PHP499.53 for the first 10 cubic meters of consumption since PrimeWater's takeover in 2018.

The complaint also raised concerns about the displacement of water district employees and questioned whether PrimeWater has been passing corporate income taxes onto consumers, an issue that has previously been brought before the Supreme Court. Bayan Muna appealed to President Marcos Jr. to issue an executive order to rescind the JVAs, direct the Local Water Utilities Administration to retake control of affected districts, and initiate a comprehensive investigation into these agreements.

Palace Press Officer Claire Castro previously indicated that the President will order a probe into PrimeWater's operations. An inquiry at the House of Representatives has also been sought, focusing on the financial viability of local water districts, the quality and affordability of water services, and the well-being of consumers. Additionally, a separate investigation has been called for at the Senate.