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MANILA
Water officials are insisting on getting a P195-million
development cost refund for the frozen P2-billion Carmen
bulk-water project, originally seen as a medium-term
answer to the perennial water shortage problem in Metro
Cebu.
They
said the company is ready to see its “legal remedies” to
back up their claim.
But
Metropolitan Cebu Water District (MCWD) officials do not
agree, saying they are ready to pay no more than
P100,000 to the Ayala group affiliate for its work done
on the proposal and the water permits it acquired.
Manila
Water corporate communications manager Jeric Sevilla
said as far as his company is concerned, the unsolicited
proposal contract with MCWD is alive, pending formal
notice from the water district that it is finally
rejecting the proposal.
“Last
thing we’ve heard they are ready to go to mediation with
the NWRB [National Water Resources Board] but now
they’re not. They changed the rule in the middle of the
ballgame,” Sevilla told the BusinessMirror.
“We are
asking MCWD, if they no longer want the contract to give
us a formal communication on the rejection and to refund
us for our development cost,” Sevilla said. “We are
still hoping they [MCWD] would change their mind, but we
will see what legal remedies we have.”
But MCWD
general manager Armando Paredes in a separate interview
said the MCWD board could “not see any point” in going
to the NWRB considering the vast difference in figures
they and Manila Water claim to have.
“Unless
Manila Water reconsiders its position, the board sees no
point in going to NWRB or back to the negotiating
table,” Paredes said.
The
project was ready for a price challenge in 2006 when it
hit a snag—as Manila Water insisted on getting the
refund for its development cost in the event they lost
in the price battle.
MCWD
along with local government leaders who appoint MCWD
board members in Cebu opposed the claim.
Manila
Water, in 2002, made an unsolicited proposal to deliver
some 50,000 cubic meters of water daily to Metro Cebu
from the Luyang river system in Carmen town in northern
Cebu.
Water,
under the original timetable, is supposed to be flowing
through the pipeline from Carmen town to Metro Cebu by
next year.
MCWD is
currently producing most of its 120,000 cubic meter
daily load through underground wells, but admits they
only serve half of the current pent-up demand of its
franchise area. |