ILIGAN CITY - The local government of Iligan City is planning to tap a private company to run its water district.
Information Officer Jose Pantoja confirmed that a private company has proposed a private-public partnership in running the city’s water district.
The local government unit is set to meet the company’s representatives this week.
The private company proposes to manage the operations and maintenance of the district. It will also shoulder the city’s annual amortization of around P100 million.
During Mayor Lawrence Cruz’s administration, the city borrowed more than P400 million from the Development Bank of the Philippines for the expansion and rehabilitation of the decades-old water system.
"The government is barely earning anymore. In fact, we are already subsidizing," Pantoja said.
Iligan City is currently collecting a service rate of P2.85 per cubic meter from consumers.
Pantoja said that the government is also burdened by expenses incurred from repairs of busted pipes.
Some consumers don’t mind an increase in the water rate if it means better service.
At present, some areas in Iligan City experience poor water service.
The private company vowed not to change water rates in the first five years should both parties agree on the partnership.