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QMWD sites "substantial breaches," seeks to end PrimeWATER joint venture

By Nimfa L. Estrellado The Quezon Metropolitan Water District building, a symbol of the district's commitment to providing reliable wate...

By Nimfa L. Estrellado


QMWD sites "substantial breaches," seeks to end PrimeWATER joint venture
The Quezon Metropolitan Water District building, a symbol of the district's commitment to providing reliable water services to the residents of Lucena City and surrounding areas. (QMWD)






LUCENA CITY, Quezon – With communities struggling under the weight of water shortages and service disruptions, the Quezon Metropolitan Water District (QMWD) has initiated the termination of its Joint Venture Agreement with PrimeWATER Infrastructure Inc. (PWIC), citing "substantial breaches" of the agreed terms. This decision, formalized in Resolution No. 24-03, was prompted by widespread water shortages, service disruptions, and mounting complaints from concessionaires and local government units (LGUs).

The 2018 agreement transferred operational and managerial responsibilities to PrimeWATER, with expectations of specific service standards. However, QMWD's resolution highlights PWIC's failure to meet these standards, causing significant dissatisfaction among consumers. The district also noted PWIC's "apparent inability to address the water problems" that agitated LGUs within its jurisdiction.



Invoking a provision allowing pretermination for substantial breaches, QMWD has begun the process of ending the agreement. District 1 Board Member Julius Luces, a vocal critic of PrimeWATER, has been a key advocate for this decision. He received the resolution directly, underscoring his role in pressing for action since 2019. Luces credited collaborative efforts and public awareness campaigns for driving QMWD's move.

“We have consistently called for the termination of this agreement, and we will continue to fight for the welfare of our constituents. This is a testament to the power of collective action and the importance of holding service providers accountable.” Luces said.

The QMWD's action highlights the growing tension between private water management firms and local communities regarding service delivery and accountability. This pretermination marks a critical juncture for water management in Lucena City and surrounding areas, potentially leading to a return to public control or a revised partnership model.

In the official resolution, QMWD explicitly stated, "PWIC, despite the first phase of the Agreement, committed breaches which caused dissatisfaction of the concessionaires on the services of PWIC." This statement underscores the district's firm stance on PWIC's failure to uphold its contractual obligations and deliver satisfactory service, directly leading to the decision to terminate the Joint Venture Agreement.

While QMWD has yet to detail the transition process or future management plans, they have assured the public of their commitment to ensuring a seamless transition and restoring reliable water services. Consumer advocacy groups and local government officials are closely monitoring the developments, as the outcome could have broader implications for water privatization in the Philippines.

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