THE HEMMING AND HAWING of one of its top officials not with standing, Mabalacat City Water District (MCWD) has finally entered into a Contractual Joint Venture Agreement (CJVA) with Primewater Infrastructure Corporation (Primewater).
The series of negotiations were done August 5, 2018, September 27, 2018and October 11, 2018 when MCWD and Primewater have reached “an agreementon the basic terms and conditions of the proposed Contractual Joint VentureAgreement (CJVA) for the financing, development, rehabilitation, expansion,improvement, operation and maintenance of the water supply and septage system of the Mabalacat City Water District”.
I was given the chance to leaf through the handouts bearing the Primewater proposals, MCWD proposals/comments/recommendations and the agreed terms: a) establishment of the unincorporated joint venture; b) joint venture objectives, one of which is to attain the highest possible level of water supply and septage management services; c) management of the joint venture-MCWD will maintain strategic control and Primewater will have operational control; d)contributions of the parties; e) performance bond; f) service obligations of Primewater; and g) pre-termination payment.
MCWD’s primary contribution to the Joint Venture is the exclusive right to usethe MCWD facilities and the concession rights to provide water supply servicesand/or operate the water supply system in the joint venture area.
The assets of MCWD, as stipulated, will be delivered to Primewater by way ofusufruct amounting to P117,647,087. MCWD will receive usufruct payments.
The primary contribution of Primewater is the capital investment amounting to P3 billion plus in capital expenditures and P256.07 million in the construction and management of septage facilities in the joint venture area.
This joint venture arrangement will introduce several improvements to thewater supply and septage management scheme of the newly-forged enterprise.
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Employees’ retirement incentives. Primewater shall support MCWD’s right-sizingprogram through payment of retirement and financial assistance packages toretirable employees. Primewater shall pay retirable regular/permanent employees an equivalent to two and a half (2.5) months salary for every year of service.
Also, for those who opt not to join the Primewater Accredited Service Provider,Primewater shall pay a Livelihood Assistance Package to MCWD non-regular/non permanent employees of equivalent to one (1) month latest basic salary for every year of service.
Financial Assistance for absorbed employees to pay their existing loans.Primewater shall provide the monetization of the regular/permanent employees’length of service at MCWD, i.e., number of years of service in MCWD x 1.5 months salary.
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So much anticipation and expectation has been registered about this Jointventure arrangement between MCWD and Primewater. Others were even skeptical about the arrangement. With the forging of the Contractual Joint Venture Agreement, it is hoped that the water supply and septage management will be for the best benefit of the residents/concessionaires of the city.