The local government unit (LGU) of Corella and the Bohol Water Utilities Inc. (BWUI) signed a new Memorandum of Agreement (MOA) and effectively resolved an old issue for the benefit of water consumers especially those located in Tagbilaran City.
On June 25, 2021, Corella mayor Hilario Tocmo and BWUI general manager Romeo Robles signed a MOA, which was brokered by Gov. Arthur Yap as the water utility is partly owned by the Provincial Government of Bohol (PGBh).
The new MOA stipulates that BWUI shall pay the LGU P2.00/cu. meter from all wells of BWUI existing in the said town. The BWUI is not allowed to extract more than 20,000 cu. meters/day and BWUI will no longer provide free water supply to the town.
The new MOA amends the 2004 MOA entered into by and between the LGU and BWUI, the new pact states.
Moreover, another salient feature of the new MOA is the provision of funding coming from BWUI to finance some of the LGU’s projects where BWUI commits to contribute a total of P10 million spread over two years.
Furthermore, BWUI shall also pay the LGU an environmental fee of P160,000 to be given annually.
The MOA also provides that the bulk water rate for Corella from the water supply coming from BWUI shall be pegged at P19.50.
The new MOA settled the conflict between the LGU and BWUI, according to Capitol sources.
The issue stems from Corella making a move to junk the agreement with BWUI where the latter has been extracting water especially from the town’s water resources.
The town went to the extent of filing a case against BWUI in 2011 as the fee being paid by the water utility was allegedly “too low”.
Cortes filed a case against BWUI with the former seeking to nullify the original MOA citing the fee paid by BWUI for the right to extract water was deemed “unfair”, according to reports.
In the case filed by Corella, the LGU asked the Court to declare the original MOA as “null and void and of no further force or effect”.
The original MOA entered into by and between LGU-Corella and BWUI allows the latter to establish five pumping stations and facilities located in the town in connection with the latter’s rights to extract underground water, according to accounts reaching The Bohol Tribune.
The original pact states that BWUI shall pay the LGU of a royalty fee of P0.25/ cu. meter of extracted water. The BWUI shall pay the royalty fee on the extracted water it sells to consumers and will not pay any fee on extracted water that will be given to the town for free.
BWUI will also provide free water supply of not exceeding 15,000 cu m. In excess of this volume, the town shall pay BWUI an amount of P15/ cu. meter. The MOA took effect on January 1, 2003.
