Friday, March 27, 2009 [ sunstar.com.ph ]
THE Local Water Utilities Administration (LWUA) is set to come up Monday with a new water rate increase.
The increase would be implemented by the Zamboanga City Water District (ZCWD) to its thousands of concessionaires in Zamboanga City.
The move came after the ZCWD officials agreed for a percentage scheme water rate hike implementation in a dialogue Tuesday with a group of oppositors in the presence of LWUA officials.
Instead of the 39 percent increase, the oppositors suggested for a 15 percent rate increase, which the ZCWD officials are amenable.
"We (the oppositors) decided for a 15 percent across the board rate hike contrary to what the ZCWD wanted to implement," lawyer Vic Solis said Friday.
LWUA, through Resolution 29 series of 2009, has earlier approved the application of ZCWD for a 39 percent water rate hike to take effect March 1.
From the minimum of P90 per 10 cubic meters (cu. m.) for residential, it will be increased to P125 and P180 to P250 for commercial water concessionaires following the 39 percent water rate hike.
Solis said the minimum rate will be P103.5 per 10 cu. m. for residential and P207 for commercial water concessionaires if and when LWUA will approve to lower the rate increase to 15 percent from the 39 percent it granted earlier to ZCWD.
Solis is happy to note the City Council is backing up their proposal for the City Government to help the ZCWD finance its expansion and rehabilitation programs.
The City Council, during its regular session Thursday, has passed a resolution requesting Mayor Celso Lobregat to study the possibility of granting loan to ZCWD instead for the water firm to acquire loan from a lending institution.
The City Council urged Lobregat to study Executive Order 279 issued by President Gloria-Macapagal Arroyo that encourages local government units (LGUs) to assist the water districts.
The ZCWD needs at least P138 million to undertake expansion and rehabilitation projects programmed for this year.
Solis said the interest rate would be lower if the City Government decides to grant a loan to ZCWD compared to the high interest rates being imposed by other lending institutions on loans.
He said it will be beneficial to the concessionaires since ZCWD could implement a lower rate hike, allowing them to pay the loan interest. (Bong Garcia)
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