Wednesday, July 16, 2008 [ manilatimes.net ]
By Thom F. Picaña Correspondent
Baguio Water District starts five-year increase to meet monthly obligation of P7 million
BAGUIO CITY: The supply of water has long been a problem of this mountain resort city. While it is not about to end, residents will have to contend with having to pay even more for so much less water for now and the next five years.
The semigovernment water utilities here are to start its five-year increase in the cost of water this month. The Baguio Water District (BWD) will be imposing a minimum increase of 5.9 percent to as high as 26.67 percent in the first round of increases, which will take effect every year until 2012.
BWD had no choice but to impose the increases as it faces inflation and the need to meet a monthly obligation of at least P7 million to pay a multimillion loan with the Australian government.
The 5.9-percent increase that would see a P15.90 mark up in the monthly billing will affect some 20,073 of the district’s 29,500 consumers, said BWD General Manager Teresita de Guzman during the district’s public hearing conducted on May 9 at the Lions Club. She made clear the BWD is seeking “the consumers’understanding in the implementation of the increases.”
“It is OK if you increase the rate as long as you provide a better service,” said one consumer after the BWD presentation, which noted how the said increases for the next five years will allow it to pay off a P700-million loan for its systems upgrade, as well as additional power costs, among others.
The upgrade should mean continued water supply unlike the present set-up where many households get water on a scheduled basis.
A consumer’s bill this month will only reflect the full amount as payment for the minimum 10 cubic meters and with the burdensome Power Cost Adjustment deleted from the piece of paper that would show a client’s monthly consumption.
De Guzman said that connections with two or more families or residence B would pay at least 11.12 percent more from P331.30 to P368.14 or an increase of P36.84.
A connection classified as residence C would pay P47.30 more for a 10-cubic-meter consumption or a 13.22-percent increase, from P357.65 to P404.95.
Hotels and inns classified as commercial A will pay close to a P100 minimum, or 20.96 percent more from P489.40 to P589.00, while schools, private offices will have the biggest mark up of 26.67 percent as minimum payment of P441.76, from P324.00, or a P117.76 increase.
The rate increase said de Guzman would “stabilize BWD from inflation and continue its viability.”
It will take BWD at least two years to transfer its connection from the main pipe to consumers using a new pipe systems that will service 15,000 connections by Year 2010, explained de Guzman. While she did not mention how much BWD will be saving with this upgrade, she claimed that BWD will produce 55,000 cubic meters of water daily, of which some 32,000 cubic meters will be delivered using the old system.
Rep. Mauricio Domogan of Baguio sees the P700-million systems rehabilitation program as a white elephant as he said that it was a “mistake that consumers will have to pay for now,” insisting that even if the system were state of the art, the demand for water will still be there.
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