MCWD chief: Private water distribution could cost more

Local

THE promise of bringing water closer to upland communities may come with a higher price tag, as the Metropolitan Cebu Water District (MCWD) cautioned that private bulk water suppliers could charge more due to taxes and other costs.

MCWD General Manager John Dx Lapid said the agency is open to allowing private suppliers to directly serve mountain barangays that remain underserved, but stressed that pricing and sustainability remain key concerns.

"With our existing bulk suppliers, they cannot directly distribute to the areas that we are supplying. But if gusto sila modistribute sa area, wala sila kontrata with us, we are open to that," he said in an interview on Friday, April 10.

"Kung dili namo ma serbisyoan ang residente sa mountain barangays, pwede gyud sila mosupply og tubig diha," he added.

He warned, however, that private distribution could result in higher water costs for consumers due to taxes.

"Pero ang akong isulti is yeah, nindot ang idea, mahatdan ni sila tubig dito. Pero if private entity ra ba naa silay VAT, so mas momahal ilang tubig. And then number two ang sustainability pud sa ilahang supply."

Lapid suggested that residents coordinate first with MCWD so the agency can assess whether it can extend pipeline services to the area at a lower cost.

He also emphasized that private water providers are regulated by the National Water Resources Board and are subject to value-added tax (VAT), unlike MCWD which is VAT-exempt.

According to him, these additional costs could make privately supplied water more expensive for consumers.

Lapid clarified that MCWD is not against private sector participation in water distribution as long as existing contractual agreements are respected.

However, he stressed that suppliers with active contracts under MCWD must not directly compete within the utility’s service areas or sell water within the same coverage zones.

He also cited JE Hydro as an example, saying that if a bulk supplier already contracted under MCWD begins directly selling water within MCWD’s service areas, it would be considered a violation.

"If they have a contract with us, we will run after them. Why would you compete with us?"

At the same time, he said MCWD welcomes additional supply efforts where the utility itself cannot reach.

"Wala gyud problema gyud, malipay mi ana," he said.

The statement comes as the city moves forward with a proposed ordinance introduced by Councilor Alvin Arcilla, which seeks to address the long-standing water supply problems in the city’s upland communities by opening the door for additional bulk water suppliers.

Arcilla’s proposal highlights the persistent struggle of mountain barangays in accessing reliable and sufficient water for daily needs such as cooking, cleaning, and sanitation, despite the presence of existing service providers.

It notes that many higher-elevation areas continue to experience irregular supply or complete lack of access.

The measure aims to allow qualified bulk water companies to operate in these underserved areas, citing legal basis that MCWD is not the sole entity authorized to provide water services.

It also underscores the need to prioritize communities located near water sources, ensuring they are not bypassed in distribution.

Under the proposal, so-called “host” barangays are to be given priority access, while a portion of water production should also be allocated to nearby underserved communities.(MyTVCebu)