METRO PACIFIC Iloilo Water (MPIW) said the recent tariff increase approved by regulators is necessary to sustain its water distribution operations in Iloilo City amid rising costs.
“This tariff adjustment does not fund infrastructure projects or capital expenditures,” MPIW Commercial Department Head Kathleen Sadio said in a media release on Wednesday.
“It ensures we can continue operating efficiently, meeting regulatory standards, and delivering consistent service even as inflation, energy costs, bulk water supply costs, and operational demands increase,” she added.
The Local Water Utilities Administration (LWUA), which oversees more than 500 water districts nationwide, approved the tariff adjustment that raised MPIW’s basic charge to P28.67 per cubic meter (cu.m.) from P20 per cu.m.
MPIW said the increase is “vital to support operational expenses such as power, chemicals, labor, and fuel,” emphasizing that it will not be used for capital expenditures.
Ms. Sadio said the company has been subsidizing bulk water supply costs in recent years, prompting the adjustment.
Despite the higher rates, the company said its tariffs remain among the lowest in Metro Iloilo and compared with other highly urbanized cities.
MPIW said it has invested P4.2 billion in water-related projects since taking over operations in 2019.
“We’ve been operating at a loss for six years, but we’re not backing down,” Ms. Sadio said. “Even in the face of continuously rising bulk water supply costs, operational and material costs, and regulatory issues, we’ve made significant progress — because this is our commitment to Iloilo.”
The company plans to invest P11 billion over the next five to ten years, including the ongoing P5-billion desalination facility project in Iloilo.
MPIW said project implementation has faced challenges such as coordination with regulatory agencies, supply chain issues, weather disruptions, and permitting delays.
“We’ve refined some of our processes to be more coordinated and responsive to on-the-ground realities,” Ms. Sadio said. “We now implement phased construction, strengthen collaboration with the Department of Public Works and Highways and local government units, and intensify our public communication to minimize disruption.”
The company aims to reduce its non-revenue water (NRW) level — or treated water lost through leaks, pilferage, or outdated pipelines — to 35% by 2027.
MPIW is a joint venture between Metro Iloilo Water District and Metro Pacific Water (MPW) that provides water services to Iloilo City and the municipalities of Oton, Sta. Barbara, Cabatuan, Maasin, San Miguel, Pavia, and Leganes.
MPW is the water infrastructure investments subsidiary of Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC).
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
