CITY OF SAN FERNANDO — The City of San Fernando's Committee on Public Works on Wednesday held a public hearing on the alleged complaints of concerned local residents and the Balibago Waterworks System, Inc. on the joint venture bidding process of the City of San Fernando Water District (CSFWD) with Prime Water.
The public hearing was conducted to look into the complaint of a certain Mrs. Marilou Uban and the complaint of the Balibago Waterworks System, Inc. Uban and dozens of signatories from local residents in a letter dated October 11 asking the city council to investigate the bidding process.
Balibago Warerworks System, Inc.'s Tito Panlilio said that the joint venture with City of San Fernando Water District and Prime Water should be cancelled adding that the competitive challenge proceedings it had implemented was unfair to other would-be bidders.
Panlilio said that they were from the start in talks with the directors of the CSFWD but were later surprised to find out the bid process has changed drastically to their disadvantage.
In an earlier letter to Vice-Mayor Jimmy Lazatin, the Balibago Waterworks System, Inc. had asked the city council to look into the matter.
The Balibago Waterworks also decried the provision under the Competitive Challenge procedure of CSFWD that allows the original proposal, in the event that it loses the challenge, to be reimbursed for a certain amount of pre-operating cost.
“The original proponent is entitled to a sum of P59.1 million. Of hand, we cannot fathom how a project study for the size of the market, technical specifications and other pre-operating expenses for a 'cut and dried' and simple waterworks system can be costed at P59.1-million. We can definitely complete a technical study for the city at a much lower cost,” the Balibago Waterworks said in their letter.
The water utility said that the move of CSFWD has practically favored the original proponent.
The Balibago Waterworks also alleged that the CSFWD had published its invitation to bid in an obscure newspaper adding that a multi-million project should have received a wider publication.
Panlilio stressed in the hearing that the city council should enjoin the CSFWD to cancel the joint venture and pursue instead the Competitive Selection mode.
He added that the CSFWD joint venture places local concessionaires at a disadvantaged position.
Meanwhile, City Councilor Noel Tulabut said that the city council would have to look and determine if it has authority to intervene in the bidding process of the water utility.
He added that he would rather move that the CSFWD defer the joint venture until such time that all sides are heard.
In a message sent to Sun.Star Pampanga, the CSFWD said that records of the Joint Venture proceedings were within the procedural process and in fact show that Manila Water Corporation (MWC) signified its intention to participate in the competitive challenge process and actually purchased eligibility documents on June 21,2016.
However, on July 25, 2016, the cast day of submission of eligibility and proposal, MWC in its letter of the same date withdrew its participation.
“Thus, there was no challenger to Prime Water’s unsolicited proposal in the competitive challenge stage," CSFWD said.
The CSFWD in another statement said that on a Sept 23, 2016 opinion, corporate counsel Elpidio J. Vega stated that the joint venture procedures under the 2013 NEDA Joint Venture guidelines "have been followed to the letter."
CSFWD director Tonette Orejas said that Balibago Waterworks has not submitted an unsolicited proposal although the CSFWD has granted its request for an extension of three months to complete its study.
“Balibago Waterworks did not buy bid documents or participated in the bidding. It had all the opportunity to propose and bid but it didn’t," Orejas said.
"The contractual joint venture with Prime Water is validly found to be in the best interest of water consumers in CSF [City of San Fernando],” Orejas added, referring to the P3-billion investment over 25 years that would provide safe and stable supply of water to the Pampanga capital.
