BACOLOD City Councilor Wilson Gamboa Jr. asked the Bacolod City Water District (Baciwa) to submit a copy of their income and other financial statements in the last 10 years to weigh in on their proposed water rate increase from P208 to P248 per ten cubic meters.
Gamboa, who led the public hearing last week at the Government Center with the officials of Baciwa, said Baciwa general manager Juliana Carbon told them that the last increase that Baciwa posted was in 2009 and that the present rate of inflation caused an increase in the expenses of the water district.
Gamboa said the inflation was already factored in the previous price forecasts and projections and should not be made an excuse for the said proposed increase.
"The reason for the increase should be shown in Baciwa's financial statements, especially on retained earnings. They should explain the proposed water rate increase with comparative studies of other regional and provincial water districts," he said.
He added Baciwa claimed that one of the reasons of their proposed increase is because they do not receive any financial subsidy from the National and Local Government or even from Local Water Utility Administration (LWUA).
Gamboa noted that it is incumbent upon Baciwa to be financially sound, self-liquidating and revenue generating and income derived should be plowed back in the form of lower rates, improvements, and expansion of facilities that will benefit stakeholders.
He also requested Baciwa to explain the status of its previous loan amounting to P537 million for the improvement of the water facility and services.
He said Baciwa has a pending loan request of P500 million with the LWUA, but they need to explain it first the status of their previous loan.
"They should submit the supporting project proposal and plan as to where this said additional P500 million will go. They also need to justify as to where its upcoming financial loan from LWUA this equivalent of P500 million as well as its projected 10-year capital expenditures equivalent to P1.9 billion," he said.
He added Carbon also promised to submit all the documents to the City Council.
