DCWD proposes 60% increase in water rates

By Ralph Lawrence G. Llemit

THE Davao City Water District (DCWD) is proposing a 60 percent water rate increase to be implemented in tranches amid the ongoing Covid-19 pandemic.

DCWD deputy spokesperson Jovana Cresta Duhaylungsod told SunStar Davao in a phone interview that the proposed water rate hike is planned to be implemented in tranches by 30 percent in 2022, 20 percent in 2023, and 10 percent in 2024.

In a presentation during the public hearing on Monday, December 20, wherein the proposed water rate hike was discussed in detail, the first 10 cubic meter (cu.m) current commodity charge is at P137.30. In 2022, this would increase to P178.50, while it will be P214.20 in 2023, and P235.60 in 2024.

She said the proposed hike was staggered into three tranches to cushion its financial impact on its consumers considering that the city is still under the state of the Covid-19 pandemic.

Duhaylungsod said the proposed increase is targeted to fund all the DCWD projects and sustain its operations.

“The nature of DCWD’s operation and services, It is a government-owned and controlled corporation. And we don’t receive any funding from the national or local government,” she said.

“What we are using to fund our operation, expansion [and] improvement projects are from the water bills that we collect from our customers,” Duhaylungsod added.

The proposed water bill was adopted by the DCWD Board of Directors for public hearing by virtue of DCWD Board Resolution No. 21-304 dated November 5, 2021.

The proposal, however, is still subject to review and approval from the Local Water Utilities Administration (LWUA), a regulating agency that oversees the development of water supply systems in provincial cities and municipalities outside of Metropolitan Manila.

The hearing, however, was limited via video conferencing and was not live-streamed on Facebook due to the intermittent connection concerns.

The public hearing is one of the requirements to be submitted to LWUA before DCWD’s application for a water hike will be granted.

Initially, the proposed water hike was being lobbied in 2019, but they set aside this when the Covid-19 pandemic hit the city.

Current Water Rates

Duhaylungsod said despite the proposed increase, she said DCWD’s existing water rates are one of the lowest in the country and are “very affordable” as it is less than five percent of the average income of the lowest income group.

Based on the document presented during the hearing, in a one half inch connection size, the minimum charge is only at P137.30, wherein the commodity charges of an 11 to 20 cu.m is P14.40, while charges of a 21 to 30 cu.m is at P18.60, 31 to 40 cu.m is at P24.70, and 41 cu.m and above is at P36.

The official said the last time DCWD requested an increase was in 2005 at 60 percent. The implementation was spread over nine years at 30 percent in 2005, 10 percent in 2012, another 10 percent in 2013 and 2014. This is to cushion the economic impact among customers.

“From the increase, DCWD was able to collect a total revenue of P12 billion, utilized as 75 percent capital expenditures and 25 percent operational expenses,” she said.

The official said the collection in the water hike had propelled infrastructure development from the 2005 water rate hike. This had led to the construction of 29 production wells, 23 storage facilities, and 490 kilometers of pipelines.

With the increasing development in the city, Duhaylungsod said the water utility needs to ramp up its projects for the continuous improvement of services. But she said this won’t be possible with the current water rate. Hence, there is a need to impose water hikes.

“If we further delay the implementation of these projects, basin naa tay mga areas nga dili nato matugunan dayon ang (there might be areas that we won’t be able to immediately address their) water needs,” she said.

Despite the impending application for the rate increase, Duhaylungsod assured that the big-ticket projects for the improvement of its service are pushing through and that its completion is being fast-tracked.

‘Unfair and unreasonable’

Davao City Second District Councilor Danilo Dayanghirang said that the possible water rate hike is “unfair and unreasonable” for his constituents.”

Dayanghirang said that personally wrote to DCWD to air his opposition to the said proposal.

“I wrote [to] the Davao City Water District (DCWD) that I am totally against this move and I find it utterly unfair and unreasonable for my constituents in District 2 to shoulder the increases when our water supply is still unstable and unclean,” the councilor said.

“And as a government-owned and controlled corporation, it is incumbent for DCWD to look after the welfare of the people first and foremost, especially that we are still trapped in this pandemic,” he added.

Dayanghirang said increasing rates for three successive years is not acceptable because the consumers continue to financially suffer the impact of the pandemic.
Councilor Louie John Bonguyan, meanwhile, appealed to DCWD to reconsider its plan and defer the proposed hike as the city is still under a pandemic.

“Increasing water rates, water being a prime and important commodity would have adverse effects on our constituents here in Davao City,” Bonguyan said.

He added that DCWD’s service in the second district has been problematic, still due to the unstable and unclean supply.

“It’s quite questionable when it cannot even provide the quality of water it is mandated by law,” Bonguyan said.

If ever the increase is necessary, he appealed to the DCWD board to implement the increase in an “inverted manner”. He suggested implementing a 10 percent increase in 2022, 20 percent in 2023, and 30 percent in 2024.

SunStar Davao has yet to get Duhaylungsod’s response on the councilor’s sentiments.

Although she said they are taking into consideration the negative feedback of its customers, especially those in the second district who are complaining about the poor water service in the area. RGL