“I will lay down my life so that Sinandigan will have water, remember that!”
This was what the Mayor said during a visit to Sinandigan where a public forum was held last July 23.
I just like to impress upon you how dedicated I am, together with the Councilors who are here…by hook or by crook, this project will be done, remember that” says the Mayor.
Editor: The water rehabilitation project was formally launched last August 8. The project is reportedly worth 170 million pesos. It was noticeable that the issues were mixed up during the forum. We would like to clear this up so as to prevent confusion in the minds of our readers.
There were 2 major issues discussed during the forum; one is about the water project and the other was about the Land Bank to fund now controversial projects. These are 2 different issues.
The water project will be done under a Build-Operate-Transfer scheme or BOT. The BOT scheme is defined under the Memorandum of Agreement (MOA) between the municipal government and the Puerto Galera Water Consortium. According to the Mayor, the Municipal Government does not have the capacity to carry out the project and thus, the consortium will help finance the water rehabilitation and expansion project.
The issue of the Land Bank loan is a different subject. This came out after the Sangguniang Bayan passed a resolution authorizing the Mayor to enter into loan negotiation with the Land Bank to finance the following projects: renovation of the Municipal Hall, construction of a low-cost dormitory at the 3rd floor of the public market, construction of a convention center at the 4th floor of the public market, air-conditioning of the Municipal Gymnasium, purchase of heavy equipments and purchase of vehicles for Sangguniang Bayan members
The Municipal Government can borrow more than 43 million pesos from the Land Bank.
Now let us go back to the question and answer of the Mayor in his public forum in Sinandigan.
“Mayor, what is the Memorandum of Agreement with Max Bank that we heard about?” asks Brigida Abante.
The Mayor said that the agreement is with the Puerto Galera Water Consortium and not with Max Bank. The Consortium is composed of the JL Business and Technology Consultancy Inc. and OPPAX Group Holdings Inc. – one of the owners is Maximilian Oppacher who is also one of the owners of Max Bank.
The Mayor stressed that the multi-million peso water project is not a loan but will be under a BOT scheme.
The Mayor lambasted the privelege speech of Vice Mayor Teo Atineza during one Sangguniang Bayan session where the Vice Mayor purportedly said that it is only during summer when there is no water and that a direct pipeline from the source to Sinandigan is all that is needed. This solution, the Vice Mayor said, does not require a foreign partner.
The Mayor said: “What month is it now, July, its not summer, why don’t you have water, why must we send our firetruck here to bring you water…You have been waiting for many years, don’t you now have a direct line from the source, do you have water–none–is it summer today, from January up to now, you do not have water.”
Genaro Caguete asked how the municpality will pay for the millions that will be spent for the rehabilitation of the water system.
Again, the Mayor explained that the

project is not a loan

and that the income of the private partner will be taken from the income from the water supply.
A source said that if the net revenue of the water supply is 10 million pesos per year, 8 million pesos or 80 percent will go to the private partner and 20 percent will go to municipal government.
The Mayor said that after 25 years, the municipal government has no more obligations to the private partner whether they profited or not from the project.
The Mayor added: “They are saying that the water tariff will increase.

That will not happen because the Sangguniang Bayan will be the one to approve (the increase) and even if they increased the tariff, if I don’t sign that will also not happen.”
Barangay Chair Amparo Arban asked why the power supply should be given to the private partner.
Under the MOA, the private partner will build a hydro-electric power plant but it will be under a Build-Operate-Own scheme. This means that after the lapse of the agreement, after 25 years, the private partner will be the owner of the power plant.
The Mayor said that experts say that there a strong water source for the water system that could also generate electricity.
“Now because gravity is not enough…could not drive the water to Sinandigan which is the reason why we will use booster pumps. The booster pumps need electricity. If we will get this from ORMECO, our expenses will increase because we need to pay for the electricity. We thought about this; we can make our own electricity which can be used by the booster pumps and the excess power we will sell to other consumers,” says the Mayor.
The Mayor added that there are plans to build windmills on the mountain of Tabinay and Baclayan.
“We can now disconnect from ORMECO, we can be on our own, we can setup a Puerto Galera Electric Cooperative. We can administer our own electricity, not rely on the service of ORMECO which is on and off…”
Barangay Chair Arban asked: Is it true that the councilors will each have a vehicle?
The Mayor said that the issue is just “a fantasy” of those who criticize him.
Mayor said: “It is wrong when they think of the Sangguniang Bayan vehicles… the vehicles are for the town.”
The Mayor had been widely criticized for the proposal to buy each councilor a service vehicle. However, 4 of the 10-member Council had said they do not want a vehicle.
Barangay Chair Arban asked asked why the mayor had cut off the electricity for plaza Iluminada?
“I did not cut off the power for plaza Iluminada but I did cut off the electricity of private persons who are connected to the town’s elecrticity”, says the Mayor. The Mayor did not clarify who the private persons were but a source said that their houses are near plaza Iluminada. The Vice Mayor’s house is near the plaza.
At this point, the Mayor mentioned that there are persons who tapped into the direct mainline to Sinandigan which caused the inadequate water supply to the barangay.
The Mayor said: “That tapping (into the mainline) did not happen during my term, you ask the people to whom they paid (the money to connect) to the line to Sinandigan and they will tell you who received (the money)…”
The Mayor added: “This is my commitment together with Councilors Grace, Leo, Polying Lopez, Joseph Andal, Jayjay Evangelista and ABC Elino Candava, these are the 6 honorable councilors who will help me make this water project a reality.”
Elino Datinguinoo asked: “Who are the people who are getting in the way of your water project?”
The Mayor answered by naming the following: Ex-Mayor Herming Atienza, Ex-Vice Mayor Milan Lopez, Ex-Vice Mayor Noe Lineses, Ex-Councilors Tony Olavere, Cenon Salcedo, Rafael Romey, Flor Persia, Ex-Barangay Captain Islao Bagos, Mr. Rony Brucal, Councilor Robertito Macatangay and Vice Mayor Teo Atienza.
However, the former town officials said that they do not side with the Mayor or the Vice Mayor but would like to clarify that they do not intend to be an obstacle to the water project.
“In our meeting we discussed that we request the Mayor to study the agreement thoroughly and that there should be widespread public hearings on the MOA.”
I AM JUST WONDERING WHY WHEN THE WATER WILL BE PRIVATE OPERATED THE CONSORTIUM INSIST TO HAVE THE EUF RAISED TO 120 PESO THEY ARE THE INVESTOR!!!
AND THE MAYOR DID PROMISE NOT TO INGREASE THE PRICE FOR WATER AND NOW THEY WANT TO INCREASE 130%