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Pangasinan water rates to increase soon

URDANETA CITY (Dec. 3) — Tough times are sure to stay as the local water district here forges a contract with a foreign bank this December giving way to a new water system that poses higher water charges in 2005.

The Urdaneta City Water District (UCWD) announced on October the new project before its 200 member-consumers in a consultation. UCWD said that to initially launch the project, member-consumers would have to dole out financially.

The agency disclosed an estimated P46-increase in basic rate, adding to the present P134.20 per 10 cubic-meter rates. This means that a household would have to spend P12 a day for water consumption, UCWD added.

UCWD tied-up with the Local Water Utilities Administration (LWUA), which provided the pre-implementation plan for the project. Nilo dela Cruz, LWUA technical officer, said that the service connection would expectedly boost from the present 4,077 to 11,026 in 2010. Initial operations in 2005 will secure a definite 2,932 additional connections.

As a foreign-assisted project, 75% or P116 million of its funding will be sourced out from Kreditanstalt Fuer Wiederaufbau (KFW), a German credit institution based in Frankfurt. UCWD has a 10% share or about P15 million while LWUA will provide 14% or about P19 million. The assistance was sought after the government gave no financial support, the UCWD said.

In 2010, minimum rate will reach about P288, requiring P20 from a household per day. UCWD Finance Officer Tess Talavera reasoned out that the possible increases are below the 60% allowable by the Constitution. Talavera added that this was based on below average-income bracket of households in the city and will take effect once every two years.

The foreign debt shall be paid within 20 years and will acquire a 12.5% interest. In 2010, KFW would gain P21,232 million in interest alone.

With prices of oil, electricity and basic commodities going up sharply these days, member-consumers feared this might add up to their already heavy burden. Complaints range from financial constraints to pipe leakages and high overdue fines.

Rosa dela Cruz, a decade-consumer, relates that there were no significant increases in the income of poor households that another increase in water rate could lead to a “financial suicide” that a lot of them experiences right now. # Jong dela Cruz for NORDIS

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