Speaking at Kapehan sa Davao Monday (April 4) at SM City Davao, DCWD deputy spokesperson Jovana Cresta Duhaylungsod said that the water rate hike is planned to be implemented in tranches, by 30 percent in 2022, 20 percent in 2023, and another 10 percent in 2024.
“We entered the year with a public hearing which was part of the requirements of its regulating agency, the Local Water Utilities Administration. Including the documents that were produced during the public hearing as well as the other documentary requirements. We submitted all of them to LWUA by January 15,” Duhaylungsod said.
She said the review of the proposed water rate increase is still ongoing and it is not known yet whether it is approved or not.
“Statusquo gihapon ang atong water rate sa pagkakaron until such time that we receive the decision from LWUA,” she said.
Duhaylungsod said the proposed 60 percent increase is expected to fund all the DCWD projects in the next 10 years and sustain its day to day operations.
“The 60 percent as we go back sa atong 10 year development plan will fund our day to day operation at the same time expansion in the next 10 years,” she said.
Part of the DCWD’s development plan is to serve 20 more barangays in the city that have no water supply.
“We’re looking at serving an additional 20 more barangay in the city. Right now we have 182 barangays, but we will only serve 116. There is still a long way to go,” she added.
DCWD, according to her, is a Government Owned and Controlled Corporation (GOCC) and does not receive any subsidy from the national or local governments, adding they are only dependent on the bill payments they receive from their customers to fund their daily operations and expansion.
Currently, DCWD’s first 10 cubic meter (cu.m) commodity charge is at P137.30. If the proposal is approved, this would increase to P178.50 this year, P214.20 in 2023, and P235.60 in 2024.
“The baseline for affordability, which the LWUA set, should not be more than 5 percent of the average income of the lowest income group. So in Davao City, the average income of the lowest income group is P11,000 per month. 5 percent of that is only P500,” she said.
Even with the increase of 60 percent, it is still far from the benchmark of affordability, Duhaylungsod further explained.
“So kung muingon kag affordability rate that is 5 percent of the lowest income group which is P500. So barato gihapon kaayo ang atong rate sa Davao City compared to other water districts in the country,” she said.
The proposal until now is pending subject to review and approval by the LWUA, a regulating agency that oversees the development of water supply systems in provincial cities and municipalities outside of Metropolitan Manila.
DCWD Deputy Spokesperson Jovana Cresta Duhaylungsod