A growing number of local water districts across the Philippines are moving to terminate their joint venture agreements (JVAs) with PrimeWater Infrastructure Corporation, citing persistent service failures, unfulfilled infrastructure commitments, and alleged violations of contractual obligations.
Subic Joins the Exodus
In Subic, Zambales, the Sangguniang Bayan passed Resolution No. 29, S-2025, on May 27, 2025, urging the Subic Water District to terminate its JVA with PrimeWater. The council cited persistent issues such as inadequate water supply, low pressure, and questionable billing practices. Committee Chairman on Public Utilities & Communication, Sangguniang Bayan Member Elmer S. Tumaca, emphasized the need to prioritize constituents’ welfare in light of unresolved service failures.
House Assistant Majority Leader Jefferson Khonghun also announced plans to file a congressional resolution to investigate PrimeWater’s operations nationwide, highlighting the widespread dissatisfaction with the company’s services.
A Nationwide Pattern
Subic’s move reflects a broader trend, with several other local water districts taking similar actions:
Metro San Fernando Water District (La Union): Terminated its JVA with PrimeWater after citing the company’s failure to fulfill contract obligations over nine years. However, a Temporary Restraining Order (TRO) issued by the Regional Trial Court has halted the termination process.
Bacolod City Water District (BACIWA): Employees and consumer groups have called for the immediate termination of the JVA, alleging poor water quality, non-compliance with service provisions, and displacement of unionized workers. Of the ₱100 million annual investment promised, only ₱40 million has reportedly been realized.
San Jose del Monte City Water District (Bulacan): Passed a resolution to pre-terminate its JVA amid a water crisis affecting thousands of residents.
Financial Discrepancies and Service Failures
Audits and reports have highlighted significant financial and service delivery issues:
San Fernando, Pampanga: The Commission on Audit (COA) reported that PrimeWater invested only 46.72% of its committed capital expenditure over five years, falling short by approximately ₱396 million. Additionally, the company failed to complete a water treatment facility by the agreed deadline.
Bacolod City: BACIWA experienced a drastic drop in income from ₱623 million in 2019 to ₱48 million after partnering with PrimeWater.
San Jose del Monte, Bulacan: After entering a JVA with PrimeWater in 2018, the city’s water district saw its net income plummet from ₱187 million in 2016 to a loss of ₱5.3 million in 2020.
Government Response and Investigations
In response to mounting complaints, President Ferdinand Marcos Jr. has ordered an investigation into PrimeWater’s service performance. The Local Water Utilities Administration (LWUA) is conducting a comprehensive review of the company’s operations across its numerous JVAs.
As more localities reconsider their agreements, the future of PrimeWater’s extensive network of JVAs remains uncertain, highlighting the need for accountability and improved service delivery in the country’s water sector.