Mayor blasts PrimeWater over worsening shortages

By Dolly Yasa

BACOLOD CITY — Cadiz City Mayor Salvador Escalante has voiced deep disappointment with PrimeWater Infrastructure Corp. for its failure to keep pace with the growing water demand in the city, six years after entering into a 25-year joint venture with the local water district.

The city entered the agreement with PrimeWater—owned by the Villar family—in 2019, when the Cadiz City Water District (CCWD) was already struggling to serve just 8,000 households.

Estimates at the time showed that billions of pesos were needed to rehabilitate and expand the aging water system.

Under the agreement, PrimeWater acquired a 70 percent stake, while the water district retained 30 percent to maintain a degree of local control.

“When PrimeWater took over, service initially improved,” Escalante said. He noted that water pressure was once strong enough to reach third-floor buildings and customer satisfaction was high, with 9,000 to 10,000 connections.

However, the mayor said the system has failed to keep up with demand, especially after connections rose to about 14,000, driven by rapid residential growth.

The result has been widespread water shortages, particularly in remote barangays where pressure is weakest.

The situation was so dire at one point that Escalante considered declaring a state of calamity due to water shortages, especially during the dry season.

Following talks with the city, PrimeWater upgraded its pumping capacity, replacing 40-horsepower pumps with three 60-horsepower units.

While the upgrades brought some relief, supply issues persist, especially when pumps undergo maintenance or break down.

To ease the burden on affected areas, the city authorized the water district to tap the Yolanda housing project’s water source and directly supply certain communities.

Escalante also confirmed that Cadiz is pursuing plans to develop bulk water sources to secure long-term supply stability.

He said several investors have expressed interest in providing bulk water, although these proposals are intended for the CCWD, not PrimeWater.

If PrimeWater fails to deliver consistent service, Escalante said the city may explore re-balancing the joint venture by increasing the water district’s stake from 30 percent to 40 or even 50 percent.

Escalante also addressed reports of a possible ownership change at PrimeWater, revealing that the firm was reportedly acquired by Manila-based operators with a proven track record.

He said he had once considered terminating the joint venture, but ongoing acquisition talks persuaded the city to wait and see.

“Ending the joint venture is not easy,” Escalante said. “It is a 25-year agreement. Any move we make must always be guided by what is best for the public.”

The controversy echoes similar issues in neighboring Bacolod City, where PrimeWater also took over water operations and faced numerous complaints about iced tea-colored water and inconsistent supply.

Earlier this month, Bacolod Bulk Water Inc. (BBWI), which supplies bulk water to PrimeWater in Bacolod, threatened disconnection over unpaid dues.

BBWI granted a final extension until December 15. In a statement issued December 13, BBWI confirmed that PrimeWater had settled its obligations, preventing service disruptions.

“Normal operations will continue to ensure uninterrupted water service across Bacolod,” BBWI said.

The company also thanked the Bacolod City Government, the Bacolod City Water District Board, and Rep. Albee Benitez for their timely intervention in resolving the issue.

Despite continued upgrades, mounting consumer complaints suggest that water service in both Cadiz and Bacolod remains unreliable—raising questions about the long-term viability of the public-private partnership model in delivering essential services.