Iloilo City Council to reject Aboitiz’ proposal on water rights authority

By Rjay Zuriaga Castor

The Iloilo City Council is set to reject Aboitiz InfraCapital Inc.’s request to authorize Mayor Jerry Treñas to sign a Letter of Intent (LOI) expressing the city government’s intention to secure water rights from the Jalaur River Multi-Purpose Project II (JRMP II).

Atty. Frances Grace Parcon, chairperson of the Committee on Rules, Styles, and Justice, raised concerns about the nature of Aboitiz’s request, particularly why the LOI was drafted by Aboitiz rather than the city government, which is the implementing agency for the bulk water project alongside the provincial government.

In an email sent on June 6, Vince Tan, Vice President of Aboitiz InfraCapital, Inc., asked the city government to:

1. Pass a resolution allowing the city to enter into an agreement with the National Irrigation Authority (NIA), and
2. Authorize Mayor Treñas to sign the LOI.

The agreement with NIA is necessary for securing water rights from JRMP-II, a critical component of Aboitiz’s unsolicited proposal for the Iloilo Bulk Water Supply Project through a Public-Private Partnership (PPP).

If the city gains water rights through the National Water Resources Board (NWRB), these rights would be assigned to NIA, as JRMP-II is a NIA project.

However, Parcon questioned the appropriateness of Aboitiz drafting the LOI on behalf of the city and province.

“The LOI states that the province and city are requesting water rights, but it was drafted by Aboitiz, not the city government,” Parcon pointed out.

She also highlighted the risks involved in Aboitiz’s proposal, which includes a potential contract termination and fee imposition on the city government if water rights are not secured.

Additionally, Aboitiz’s proposed rate of Php51.00 per cubic meter is more than double the Php22.00 per cubic meter currently charged by Metro Pacific Iloilo Water.

“Instead of benefiting consumers, this would burden them. We may have a large water supply, but it will be expensive,” Parcon said, noting that the proposal lacked necessary documentation.

While the committee’s official report is pending, Parcon indicated that the council has decided to deny Aboitiz’s request.

The city’s PPP committee has already rejected the proposal.