SUBIC, ZAMBALES– The municipal council here approved a resolution urging the Subic Water District to terminate its joint venture agreement (JVA) with Primewater Infrastructure Corporation (Primewater) for alleged breach of agreement.
On May 27, 2025, during the 110th Regular Meeting presided byVice Mayor Lauro Simbol, the Sangguniang Bayan councilors, on motion of Councilor Elmer Tumaca, Chairman on Public Utilities, Safety and Information, unanimously approved SB Resolution No. 29, which calls for immediate termination of the JVA.
Based on records, on January 5, 2018, Subic Water District entered into a 25-year Joint Venture (JV) Agreement with Primewater Infrastructure Corporation (Primewater), for the financing, development, rehabilitation, improvement, expansion, operation and maintenance of the water supply system of Subic.
However, after Primewater took over the operation of the water utilities, the Sangguniang Bayan started receiving various complaints regarding poor or dirty water supply, and can’t be even used for washing clothes or for taking a bath.
The councilors also raised the questionable water rates, which in spite of no water supply, still the consumers are being charged of high water bills, specifically imposing minimum rate even without consuming the minimum cubic meter of water.
All of the complaints are in contrary to the obligations of Primewater as stipulated in the JVA which are provision of continuous water supply to all consumers, complies with the standard set by the Philippine Standard for Drinking Water, or as set by Department of Health, among other standards.
The Subic Water District, has already issued in the past to Primewater Infrastructure Corporation a notice for a pre-termination of the joint venture agreement, citing the same reasons of the Committee hearings called by the Sangguniang Bayan.
The wide spread consumer complaints and eventually the failure of Primewater to improve its water supply services, as to provide reliable, within quality standard, affordable and accessible water supply to its consumers, is a clear breach of agreements of the JVA, the resolution stated.
It added, these are absolute indications to warrant the termination of the joint venture agreement between the Subic Water District and Primewater, and return the water service operation to government jurisdiction particularly to Subic Water District.
The said resolution was signed by all ten members of Sangguniang Bayan, including Danilo Fontelera, Osias Huerta, Emma Quintos, Orlando Timbol, Ryan Gonzales, Gennyfer Chantengco, Joseph Felarca, Barangay Liga Fed. President Edgar Aximoso, and SK Federation Pres. Daniel John Lachica.
Subic Municipal Mayor Jonathan John Khonghun approved and signed the resolution.
Copy of the resolution will furnish the Board of Directors and to Engr. Jose Dinlong, General Manager of Subic Water District; Dave Dawinan, Branch Manager of Subic Primewater for compliance and appropriate actions.
