Villar-led DPWH linked to surge in PrimeWater deals under Palace review
Metro Manila, Philippines- Malacañang revealed that the surge in joint venture agreements (JVAs) involving utility group PrimeWater Infrastructure Corporation happened when the Local Water Utilities Administration (LWUA) was an attached agency of the Department of Public Works and Highways (DPWH), then led by Secretary Mark Villar.
In a Palace press briefing on Friday, Communications Undersecretary Claire Castro said the administration is reviewing PrimeWater’s service performance amid mounting complaints from consumers nationwide.
The water company, which has ties to the Villar family, began entering into multiple JVAs with local water districts beginning in 2019.
“Nabatid natin ang malawakang problema na naidulot ng kakulangan ng PrimeWater,” Castro said. “Mas dumami ang mga joint venture agreements ng PrimeWater taong 2019, panahon ng nakaraang administrasyon at noong mai-attach ito sa DPWH na noon ay pinamumunuan ni Secretary Mark Villar.”
[Translation: We found that PrimeWater’s service shortcomings have caused widespread problems. These joint venture agreements increased significantly in 2019, during the previous administration, when LWUA was attached to the DPWH under Secretary Mark Villar.]
The LWUA was attached to the DPWH through a 2014 executive order during the Aquino administration, to “improve coordination in water infrastructure planning and implementation.” The arrangement continued into the Duterte administration, where PrimeWater’s presence in provincial water districts rapidly expanded.
LWUA Administrator Jose Moises Salonga, who joined the same briefing, said their internal investigation into the JVAs has been completed and includes a historical review of how the deals came about, including potential red flags.
“We have provided the historical context on how these joint ventures came to be, including possible issues involving appointments to the board and how these contracts passed through,” Salonga said.
“The report mentions these issues, including allegations of irregularities on the ground, and the need to correct them.”
Salonga said while accountability is important, the immediate focus is on restoring water supply in affected areas.
“The issue now is where do we get the water and how do we deliver it to them,” he said. “Finger-pointing can follow. Right now, we act first.”
He confirmed that options such as compelling PrimeWater to comply with its obligations - or terminating certain JVAs - are under consideration.
Asked by NewsWatch Plus which water districts will be prioritized, Salonga said they will focus on the “noisiest” areas - districts that have already expressed intent to withdraw from the JVAs due to poor service.
“We’re working on a matrix to determine which areas to serve first based on asset availability and logistics,” he said. “Once finalized, we will release the schedule.”
NewsWatch Plus has reached out to Senator Mark Villar.
PrimeWater, affiliated with the Villar-owned Vista Land group, has faced criticism over water service interruptions, poor water quality, and audit findings of allegedly disadvantageous contract terms.
