By Donald Borja Sevilla

The National Water Resources Board (NWRB) has ruled in favor of the local government unit (LGU) of Balilihan, Bohol after the Board set aside its earlier decision, dealing a heavy blow on Richli Water Corporation’s exclusive plan to use the town’s Bugwak Spring for commercial and for-profit purposes.

In a resolution released to the public only this week, NWRB favored the facts and arguments presented by LGU Balilihan in a Motion for Reconsideration that disagreed with the Board’s Resolution dated June 02, 2022 which dismissed the town LGU’s Petition to Cancel Water Permit of Richli Water. 

The Decision dated 14 September 2021 dismissing the Petition to Cancel Water Permit was reinstated, NWRB said in its order signed by DENR Secretary Ma. Antonia Yulo-Loyzaga and DENR Undersecretary Atty. Analiza Rebuelta-Teh.

In September 2021, NWRB denied Richli Water’s petition to cancel Balilihan’s Conditional Water Permit (CWP).

But in June last year, NWRB dismissed LGU Balilihan’s Petition to Cancel Water Permit and granted Richli Water’s motion for reconsideration and ordered Balilihan’s CWP revoked without prejudice to the filing of an application for a water permit by LGU-Balilihan showing compliance with the provisions of Presidential Decree 1067, or the Water Code of the Philippines.

Refusing to surrender its rights, LGU Balilihan raised new facts and arguments in its do-or-die Motion for Reconsideration which convinced NWRB to reverse its earlier ruling.

“To summarily revoke or cancel LGU Balilihan’s CWP based on a mistake it did not commit in the first place would result in grave injustice and inequity,” NWRB wrote in its Decision.

The Board said LGU Balilihan’s Water Supply Project – which is a part of the 25-Year Bulk Water Masterplan of the Municipality of Balilihan – is “infused with funds from the National Government worth P95 Million and is nearing completion.”

“While the Board agrees with Richli’s submission that the grounds for suspension and revocation of water permits are not exclusive, the Board holds that the mistake in the coordinates provided by NIA (National Irrigation Administration) is not the willful and deliberate non-observance of or non-compliance with the rules, order or regulations deserving of a summary revocation/cancellation contemplated above,” the NWRB’s Decision said.

NWRB is the leading government agency for the water sector in the Philippines, regarding water resources and potable water; it is conferred with policy-making, regulatory and quasi-judicial functions within the Philippine government. 

It coordinates and regulates all water resources development and management of the country. 

The NWRB is responsible for achieving a scientific and orderly development of all water resources consistent with the principles of optimum utilization, conservation, and protection to meet present and future needs.

NWRB has a set of regulations (IRR) of the Water Code of the Philippines relative to water permit applications (WPAs) processing. 

One of the requirements for a Water Permit for Municipal Use is proof of land ownership of, legal title to, or right to use, the property on which the water source is situated.

In the case against Richli, NWRB pointed out that ownership of lots beside the water source is not a requirement. 

It is sufficient that an applicant has a real right over the land upon which water is proposed to be used, NWRB said.

The Board notes that LGU Balilihan submitted that it will utilize an unclassified dry land which forms part of public land, adjoining corner 10 of Lot 23225 and corner 7 of the Lot 23228 with an area of 2,861 square meters to install the pipelines from the end of the barangay road down to Bugwak Spring. 

According to NWRB, LGU Balilihan’s nationally funded infrastructure project for the rehabilitation of an existing water supply and construction of new water supply system will not pass through Richli’s alleged properties. 

“He who asserts – not he who denies – must prove,” NWRB quipped.

To date, no proof was submitted by Richli to establish that LGU Balilihan has no access to the water source,” the Board said.

Richli Water alleged that LGU Balilihan has no access to the water source because it does not own lots beside the water source. 

The Board, however, considered Article 25 of the Water Code in relation to Section 5(A)(1) of the Amended IRR of the Water Code which states that a holder of a water permit may demand the establishment of easements necessary for the construction and maintenance of the works and facilities needed for the beneficial use of the waters to be appropriated subject to certain conditions. 

“The issuance of CWP in favor of LGU Balilihan is presumed valid and regular absent any clear and convincing evidence from Richli that the issuance of CWP is done with grave abuse of discretion, malice, or undue favor in spite of existing irregularities,” the Board said.

“No such proof was forwarded by Richli when it filed its petition or protest because the mistake or defect in the application was found after the conduct of the ocular inspection long after the issuance of CWP,” the Board noted.

Richli has no locus standi – Richli was not able to show any direct and material injury that it would suffer by virtue of the CWP issued in favor of LGU Balilihan, the petitioner LGU said.

All structures were placed on public properties carefully and completely plotted by DENR and DPWH to ensure that private rights will be respected, LGU Balilihan, under Mayor Pureza Veloso-Chatto, said in its petition with NWRB.

LGU Balilihan stressed that “monopoly is unlawful and is frowned upon by the State – LGU Balilihan, Richli and even LGU Sevilla can mutually and beneficially co-exist.”

The Mayor has said that LGU Balilihan is pushing for competition in order to improve the delivery of water supply in the municipality.

In its argument before the NWRB, LGU Balilihan said that cancelling the CWP would set a bad precedent to LGUs and would put to waste public funds.

“LGUs deserve support and technical assistance from the national government. The public funds allocated for the project which has started construction since 2020 is nearing completion to date,” LGU Balilihan said.

ABOUT RICHLI

According to the company’s website, Richli Water is a private water utility company based in Tagbilaran City, Bohol, Philippines.  It operates a state-of-the-art 10 Million Liters per Day (MLD) Water Treatment Plant (WTP) coupled with booster pumping stations and two generators. 

It says that “The company was primarily created to provide the best solutions in the development of efficient, reliable, and affordable safe drinking water supply to the ever-growing population of the province.  These include, but are not limited to, bulk water sourcing and supply, water distribution management services, and infrastructure development.”

The company claims, as posted in its official website, that it is the only water company in Bohol that uses surface water supply; proven to be both environmentally sustainable and healthy for human consumption.  From its inception, the company decided to avoid the outdated method of drilling deep wells for ground water extraction.  Studies have shown that constant drilling will lead to sinkholes that will compromise the quality of Bohol’s land.”

As of latest data provided, Richli is serving 4,138 residential and commercial customers, including Eskaya Beach Resort & Spa, Henann Resort Alona Beach, Monorealty, Inc., Philippine Ports Authority, PMO Bohol, Governor Celestino Gallares Memorial Hospital, and Bohol Panglao International Airport.