Thursday, November 17, 2016
By
ERWIN P. NICAVERA
THE Metro Bacolod Chamber of Commerce and Industry (MBCCI) urged the Bacolod City Water District (Baciwa) to increase its proposed loan to P2 billion for the improvement of its distribution systems that will complement the bulk water supply project.
Baciwa management headed by its general manager Engineer Mario Macatangay, in a meeting with the officers and members of MBCCI at the Bacolod Pavillon Hotel on Wednesday, said they plan to obtain a P200-million loan to fund its capital expenditures (Capex) next year.
MBCCI chief executive officer Frank Carbon said the water district should prepare its distribution systems as the water situation problem in the city will not be solved by the bulk water supply project alone.
“What will you do to the sufficient supply of water if you do not have efficient distribution systems,” Carbon pointed out, adding that necessary expansions and repairs should be done quickly thus, there is a need for bigger Capex fund.
The business group insisted that instead of obtaining a P200-million loan for one year, Baciwa should consider a bigger amount for long-term development like for five years, or even stretch it to 10 years depending on its cash flow.
“Baciwa should not be scared of incurring P2 billion for five years even with three to four percent interest, rather than move slowly with P200 million which will also extend the agony of the consumers,” Carbon said.
Such amount of loan would also make them more attractive to financial institutions as P200 million now seems to be merely “coins” for creditor banks, he added.
In support of the move, MBCCI has requested the Baciwa management to make a draft of its 10-year master plan with corresponding amount of fund needed.
MBCCI director Roberto Abello, who was also present at the meeting, said once approved by the private sector, they will push the master plan to the Baciwa Board and to all other sectors, including the city government.
“We can no longer afford to have no water as business will not surely grow,” Abello said, adding that MBCCI will support the proposed loan by linking the water district to possible funding sources.
Engineer Jenelyn Gemora, assistant general manager for operations of Baciwa, said there are external factors that affect the move to incur loans, including opposition from the civil society.
Still, the management is open to the recommendation of the business group, she said, but they will have to wait for the new composition of the Board in January for their final say on the matter.
Bulk water supply
The status of the bulk water supply project was presented to the MBCCI during Wednesday’s meeting.
Ryan Wesley Yapkianwee, chairman of Bacolod Bulk Water Inc. (BBWI), said as of October this year, they are already 33.2 percent complete with the Injection Point No. 1.
The pipes are 100 percent manufactured, treatment facility is being manufactured and has been paid 50 percent, and necessary lease contracts have been acquired, among others, Yapkianwee said.
“We are ahead of the target period thus, we are confident to deliver water even before the scheduled delivery on October 16 next year,” he added.
Financial capacity
Businessmen also expressed concerns over the capacity of BBWI to finance the P1.2-billion project, having a paid-in capital of only P300 million.
Carbon said this is something to worry about since up to now, the firm still has no financial disclosures with any bank that will finance the project.
Yapkianwee, however, said that major components of the project like the pipes and treatment facility were mostly accomplished already thus, there is nothing to worry about.
“The remaining works to be funded is only the actual construction, particularly the labor which only comprises small chunk of the total investment cost,” he said, adding that aside from the bank guarantee, they can also utilize their equity, if needed.
