For residents of Tacloban City, the recent decisions of other local governments to break away from PrimeWater Infrastructure, Corp. should serve as an example for its own water utility to finally take steps to break its ties with the Villar-led water supplier.
This, as reports have surfaced that the Leyte Metropolitan Water District (LMWD) is seriously considering the proposed termination of its 25-year joint venture with PrimeWater, which started in 2019.
The proposal surfaced after reports last year that the Villars have sold PrimeWater to Crystal Bridges Holding Corp., owned by business tycoon Lucio Co.
However, LWMD officials said it is still evaluating its next steps.
They also clarified that they have yet to receive any communication from PrimeWater regarding the ownership change.
“In the first quarter of 2026, we will study how to proceed now that there is a new owner, although the contract remains valid,” LMWD information officer Ma. Teresa Pascua told local media.
Unsatisfactory performance
On May 5, 2025, LMWD formally notified PrimeWater of its unsatisfactory performance under the joint venture agreement.
Two months later, the LMWD board issued a notice of pre-termination. PrimeWater only responded on October 6, 2025, requesting a three-month extension to submit its reply.
The move came after PrimeWater failed to meet several key performance targets, LMWD officials charged - a similar complaint of several other water districts in the Philippines who have entered into partnerships with PrimeWater.
Other issues cited were high system losses, low water pressure, failure to deliver the target volume of water, slow response in repairing pipe leaks, and delayed payments to suppliers.
Over the past five years, PrimeWater achieved only 54,809 connections, short of the 58,000 target.
Non-revenue water stood at 34 percent, exceeding the acceptable loss level of 30 percent.
Current water pressure averages just two pounds per square inch (PSI), significantly below the ideal 10 PSI.
Daily water delivery is at 63 million cubic meters, falling short of the promised 88 million cubic meters.
“We identified these issues during our review last year, following the completion of the first five years of the joint venture,” Pascua said.
“Since the signing of the agreement, PrimeWater has only rehabilitated the old treatment plant and conducted pipe-laying works, instead of developing a new water source in Jaro, Leyte, as expected.”
It still remains unclear when and how LMWD will handle the water supply system in the city should it finally terminate its contract with PrimeWater.
Similar steps have also been undertaken by other local governments in the Philippines to address PrimeWater's continued failures in delivering its mandate.
For instance, in Santa Cruz, Laguna, the Santa Cruz Water District (SCWD) has taken handling the town's water supply after the local government suspended PrimeWater Santa Cruz's business permit last year.
(With report from PNA)
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