City gov’t takeover of SJDMWD barred

MANILA, Philippines – PrimeWater Infrastructure Corp., now led by retail tycoon Lucio Co, has secured a court order stopping the city government of San Jose Del Monte, Bulacan, from taking over the controversial local water district and awarding it to another operator.

The 20-day temporary restraining order issued by the Regional Trial Court of Las Pinas, dated June 8, effectively halts the city from dumping PrimeWater in favor of Metro Pacific Water (MPW), recently named “interim operator” of the water district.

READ: Metro Pacific Water tapped as interim Bulacan operator

PrimeWater and San Jose Del Monte Water District (SJDMWD), a government-owned and -controlled corporation, has a joint venture agreement covering 59 barangays in the city of San Jose Del Monte.

In a 35-page resolution, the court noted that since a valid joint venture agreement exists with SJDMWD, PrimeWater has “a clear and unmistakable right to be protected from any arbitrary interference from third persons who are not a party to the said contract.”

The court acknowledged that the state’s inherent power to promote and protect public welfare crosses with the autonomy and independence that Presidential Decree No. 198 gives to local water districts.

“Be that as it may, it is important to emphasize that PD 198 grants local water districts distinct legal personality, corporate powers, and administrative autonomy,” the ruling said.

The grant of this relief is “not a categorical pronouncement” that the exercise of the city’s plenary power should be struck down pending a full-blown trial of the case, the court noted.

“Instead, it merely recognizes that plaintiff has an ostensible legal right to protect its business, reputation and contractual rights, and that the acts complained of which are real, either because some acts have already been consummated but continuing or are impending or threatened, will work to the detriment of plaintiff who stands to suffer grave and irreparable injury if injunctive relief is denied,” it explained.

READ: Bulacan LGU takes over water utility amid crisis

Industry sources estimated that San Jose Del Monte accounts for about 8 percent of the water business under PrimeWater, which had been sold by the group of property magnate Manuel Villar.

Complaining that a water supply crisis continued to hound more than 250,000 residents after Lucio Co’s buyout of PrimeWater, the city signed a deal with the group of Manuel V. Pangilinan on May 20.

Under a two-month operations and maintenance agreement, MPW was tasked to manage the system and conduct a technical assessment to identify the causes of service issues and determine needed long-term infrastructure improvements.

Explaining why it does not have a business permit for 2026, PrimeWater cited more than two instances when it had attempted to submit the requirements for such. However, the court noted that the company had been “given the run-around before the Business Permits and Licensing Office.”

“As it now stands, the business operations of PrimeWater have been unceremoniously brought to a complete halt. This in itself poses a serious and real threat to plaintiff’s business, reputation and contractual rights defined and protected under the law. Apart from this, said acts may constitute a violation of the Labor Laws,” the court noted.

Without a temporary restraining order and a writ of preliminary injunction, the court said “grave injustice and irreparable damage and injury” would be inflicted pending trial. INQ