New company to offer affordable, cleaner and 24-hour water supply!
A private company is ready to invest up to P 1.7 billion to earn the right as a second player to supply potable water in Dumaguete City in direct and healthy competition with the Dumaguete City Water District in the next 25 years.
The City Council conducted a public hearing, Thursday, in the matter of Prime Water’s application for a franchise to “construct, commission, establish, operate and maintain a water supply system in the city.”
Various stakeholders attended the hearing mean to guide lawmakers whether to grant a franchise for a new player in the water supply industry. It is expected that the City Council will vote in its application in the next regular session.
Edward Du of the Negros Oriental Chamber of Commerce and Industry said that competition is always good for business but asked several “clarificatory questions” that were answered by Engr. Nino Lukban and Rone Roger Pereyra, the representatives of Prime Water who detailed their application to the hearing.
The company promises to provide cleaner water to consumers 24-hours a day at affordable rates. It is also willing to pay business tax and other fees on top of its offer to pay a franchise fee of P 1.00 per cubic meter of water sold in the area as royalty to the local government.
In the first five years, Prime Water aims to cover 21. 17% of service area coverage equivalent to 7, 236 service connections to include Cantil-e, Bajumpandan and Banilad that will eventually grow to 31, 378 in the 16th to 25th year of operations covering 73. 13% of the service area. Dumaguete City has a household population of 37, 121 in 2018.
Of its proposed investment of P1.7 billion about P 1.1 billion will be for the establishment of distribution lines that would include pipe-laying and reservoir construction.
The entry of a new player would mean that new and better water distribution lines and pipes will be established to ensure a steady and cleaner supply of water to the increasing number of consumers that includes big business establishments.
Lukban notes that the existing water distribution lines and other equipment of DCWD are already old considering these were established in the late 70’s or 80’s while Prime Water will use new and better equipment. There is also a rising complaint of low pressure or absence of water in the evenings up to early morning in various parts of the city.
Nevertheless, as in any healthy competition Prime Water intends to earn the trust and expand the number of consumers it will service in the years to come by offering a better deal.