Villars’ PrimeWater deal in Bulacan under probe for ‘very poor’ service

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MANILA, Philippines – The joint venture of the Villar-owned PrimeWater with the local water district of San Jose Del Monte (SJDM) City in Bulacan is under a multi-pronged investigation for “very poor” service, marking one of the first steps of accountability in over a hundred deals nationwide inked by PrimeWater during the Duterte administration.

The city government of SJDM will do a “full and honest” audit, according to outgoing SJDM Representative Rida Robes, who is running for city mayor to replace her husband, outgoing Mayor Arthur Robes. They are switching positions these elections. Rida Robes said this audit is already in place, whatever the outcome of the elections may be.

“May inisyatiba na rin ang Sangguniang Panlungsod para masusing i-audit ang PrimeWater at San Jose Water District. Kasama natin dito ang Local Water Utilities Administration (LWUA), na may tungkuling magbantay sa performance ng mga water district sa buong bansa. Magkatuwang nating susuriin ang bisa, epekto, at pagpapatupad ng Joint Venture Agreement,” Rida Robes told Rappler via a statement sent on April 25, as a reaction to previous reporting about the suffering of her constituents since PrimeWater came along.

(The city council has an initiative to closely audit PrimeWater and the San Jose Water District. We are working with the Local Water Utilities Administration, which is mandated to monitor the performance of water districts nationwide. Together we will investigate the legality, effect, and implementation of the joint venture agreement.)

Some communities experienced whole day water interruption over the weekend, a frequent occurrence over the years, exacerbated by high water bills for what Bulacan Governor Daniel Fernando described as “very poor” service.

“Buhat po ‘nung nag-operate ang PrimeWater, talagang naging problema na ito, very poor po,” Fernando told Rappler in an interview on Monday, April 28.

Fernando, running for a third and last term, said there had been an ongoing capitol investigation on PrimeWater too, led by Vice Governor Alex Castro.

“I instructed Vice Governor Alex Castro, dinggin ‘nyo sa Sangguniang Panlalawigan ‘yan — that’s what they did. Until now wala pa ‘yung report sa akin ng Sanggunian, ano ba nangyaring problema?” Fernando said, adding that he is ready to issue an executive order if need be, depending on the contents of the report.

(I instructed Vice Governor Alex Castro for the provincial council to conduct a hearing on this — that’s what they did. I still don’t have the report of the council so I can find out what the problem is.)

Water districts are GOCCs (government-owned and controlled corporations), and while they’re not technically under the city or provincial government, the appointment of their board members is finalized either by the mayor or the capitol.

Radio DZRH reported on Monday that as early as April 10, the San Jose Del Monte water district had informed Mayor Arthur Robes via a letter that they intended to terminate the joint venture agreement with PrimeWater. We have asked the Robeses for confirmation of this information, and will update this story once we receive it.

It’s unclear what the legal proceedings will be in this case, since the joint venture agreement is for 25 years. Civil society leaders protesting PrimeWater have been demanding for a copy of the agreement to examine where they could initiate a termination on the basis of breach of contract, but they have not been able to get their hands on a copy.

In the April 25 statement, Rida Robes said legal remedies will be exhausted if there are shortcomings. “Kung palpak, may remedyo sa batas — at hindi tayo mangingiming gamitin iyon (If the venture failed, there is a legal remedy, and we will not hesitate to use it),” Rida Robes said.

Her husband Arthur was mayor in 2018 when the joint venture agreement was signed, prompting an initial wave of protests then from local leaders who thought that the deal was meant more to accommodate the Villars, than provide water service to the people.

‘Hostaged’ by PrimeWater

Vice Governor Castro, running for his second term, said the local government seems to be “hostaged” by the “untouchable” PrimeWater.

“Ano ba ang accountability ng PrimeWater sa atin? Para tayong naka-hostage dito, salita lang tayo nang salita pero parang hindi naman tayo pinakikinggan?” Castro told Rappler in the same interview on Monday.

(What is PrimeWater’s accountability to us? We’re like being hostaged here, we talk and talk but we feel like we’re not being listened to.)

“Alam mo laging nagiging dahilan ng PrimeWater, hindi po kami sakop ng LGU. Merong parang secretary na nagsabi na walang kontrol ang LGU, na iyon ang lakas ng loob nila eh, na parang kami, tayong mga nasa local government, untouchable sila eh,” Castro added.

(PrimeWater’s frequent reasoning is that they are not under the local government unit or LGU. There’s even a secretary before who said the LGU does not have control, and that’s where they get their audacity from, that it seems to us in the local government, they are untouchable.)

Castro said even the capitol could not get a copy of the PrimeWater contract, adding that there are workers who are even complaining that they have not been paid for waterworks and repairs.

PrimeWater is a wholly-owned subsidiary of Prime Asset Ventures Inc., owned by Manuel Paolo A. Villar, one of the children of the Philippines’ richest, Manny Villar, and outgoing senator Cynthia Villar.

The other Villar sibling Mark Villar — the public works secretary during Duterte’s time whom former water board chairperson Even Calajate said was a big factor in PrimeWater takeovers — is only halfway through his first term as senator. Las Piñas Representative Camille Villar, another sibling, is running to be senator.

SJDM tapping other private concessionaires meantime

Rida Robes said that in the short term, they are engaging the services of Maynilad for five upland barangays, and the well-drilling initiatives of Hiyas Water Inc., to ease the water crisis.

“Bakit kailangan pa siyang maghanap ng another private concessionaire, at saka ‘yung driller, ano ‘yung gagawin? Dapat ibalik na lang niya sa water district ang management, maganda naman ang management during that time,” Calajate, now leading some of the protests in the city, told Rappler in a phone interview on Monday.

(Why does she need to find another private concessionaire, and what will the driller do? She should just return it to the management of the water district, because the water district had good management during that time.)

Irene del Rosario, a former councilor who’s been opposing PrimeWater and running to be vice mayor of SJDM, said the people must be vigilant and demand consultation on the next steps.

“Ang sunod na tanong pagkatapos nito ay ano ang susunod? Ibabalik ba sa water district o ito ay ibibigay uli sa panibagong pribadong konsesyonaryo na walang malinaw na konsultasyon sa taong bayan?” Del Rosario told Rappler in a text message.

(The next question after this is, what’s going to happen after? Are we returning to the water district or will the deal be given to another private concessionaire without clear consultation with the people?)

The Commission on Audit (COA) has flagged the drop in income of the SJDM water district since partnering with PrimeWater, which, in contrast, steadily increased its profits. Nationwide, COA has flagged several PrimeWater deals for income-sharing provisions disadvantageous to the government.

Castro said he’s appealing to the national government, particularly the Senate, to scrutinize PrimeWater deals nationwide.

“I am appealing to the national government, because this is not an issue only in Bulacan, ang problema ng PrimeWater hindi lang sa Bulacan, problema din ‘to sa Cavite, sa ibang lugar, ito ay national issue na dapat pakialaman na rin ng legislators natin sa national government,” said Castro, who relayed similar experiences by Marilao and Malolos residents who are also under a PrimeWater deal.

(The problem of PrimeWater is not only in Bulacan, it’s a problem also in Cavite, in other areas, this is a national issue that demands intervention by our national government legislators.)

“Sana pakialaman na rin ng Senate ‘to…parang wala pang nakikialam na senador patungkol dito sa tubig,” Castro added.

(I hope the Senate gets involved, it seems like no senator is touching this water issue.)

– with reports from Pia Ranada/Rappler.com