Lucio Co's recent acquisition of PrimeWater Infrastructure Corp. has not brought about the anticipated improvements for the residents of San Jose del Monte, Bulacan. Despite the change in ownership, the city continues to grapple with severe water shortages, raising questions about the effectiveness of the transition and the commitment to address ongoing issues.
Ongoing Water Crisis in San Jose del Monte
Residents have reported that approximately 47,611 households, comprising around 250,000 individuals, lack reliable access to water. This crisis has forced local schools to suspend in-person classes and led to the city declaring a state of calamity. While PrimeWater continues to collect elevated tariffs, many consumers are left without adequate service, prompting a critical examination of the company's operational practices.
Structural Issues and Governance Concerns
Despite the termination of the joint venture with the local water district in April 2025 due to unmet service quality standards, PrimeWater maintains its operations and tariff collection. The company charges P265.63 for the first five cubic meters of water—a rate significantly higher than competitors like Manila Water and Maynilad, which charge P210.43 and P247.24 for ten cubic meters, respectively. This pricing structure raises concerns about the fairness and efficiency of the service provided.
The city government has had to step in as a temporary operator, spending P370 million annually on water tanker deliveries to meet the needs of 62 barangays. Hospitals and other essential services heavily rely on these emergency supplies, illustrating the extent of the operational failure at PrimeWater.
Operational inefficiencies are highlighted by the fact that nearly 47.16% of the 122.36 million liters of water produced daily is lost to non-revenue sources, including leaks and theft. This loss points to deeper systemic issues that should have been addressed through Co's investment and management.
Financial Viability and Future Directives
The acquisition of PrimeWater was initially viewed as a strategic move to consolidate a fragmented utility sector and stabilize cash flows. However, a recent Senate investigation revealed concerns about the financial backing of Crystal Bridges, which reportedly had only P300,000 in capitalization despite PrimeWater’s significant asset base of P42.37 billion. This discrepancy raises questions about the company’s ability to deliver the necessary capital improvements to the water system.
Local governance and accountability are critical in the utility sector, especially when ownership changes occur. The lack of a clear transition plan and capital commitment from Co's group has left consumers and local governments in a precarious situation. The ongoing operational challenges and pricing disparities signal a need for urgent action.
Moving forward, it is imperative for the new ownership to prioritize rehabilitation efforts, reduce non-revenue water, and engage directly with local government units. Trust is a vital component of utility operation, and restoring it will require more than financial restructuring; it necessitates tangible improvements in service delivery to the community.
Ultimately, Lucio Co faces the challenge of transforming the scale of the acquisition into a reliable service that meets the community’s needs. The future of PrimeWater's operations will depend on its ability to address these pressing concerns and deliver on the promise of improved water access for all residents.