Manila: PrimeWater Infrastructure Corp.'s potential liabilities will be assessed based on the findings and documentation gathered by the Local Water Utilities Administration (LWUA), Malaca±ang said Wednesday, amid continued scrutiny of the troubled water utility firm.
According to Philippines News Agency, Palace Press Officer Clarie Castro stated that any lapses or shortcomings of PrimeWater's management must be accounted for, depending on LWUA's reports and evidence. Castro emphasized the importance of addressing any management failures or liabilities that may arise from the ongoing investigation.
Castro further mentioned that LWUA would issue a memorandum circular this month to protect consumers by ensuring that water concessionaires are not disconnected and customers are not billed when service is not provided. This initiative aims to safeguard consumers' rights amid ongoing service issues with PrimeWater.
Reports indicate that PrimeWater will be taken over by a new owner led by Lucio Co's Crystal Bridges Holdings Corp. This development comes after the Villar-led company agreed to terms to sell its entire portfolio, subject to the completion of the transaction. The sale is a result of regulatory pressure and numerous service complaints faced by the company.
As a major water utility operating in partnership with over 100 local water districts, PrimeWater has been under public scrutiny due to poor service delivery. Issues such as inconsistent water supply and interrupted services have prompted calls for congressional and LWUA investigations earlier this year.
Several local government units have expressed their intent to terminate joint venture agreements with PrimeWater due to ongoing service failures. LWUA has been evaluating options for remediation and enforcement, including the possibility of contract termination as a last resort.