The Senate Committee on Public Services on Monday questioned PrimeWater Infrastructure Corp. over alleged unfulfilled investment commitments and deteriorating water service in local water districts nationwide.
Committee chair Senator Raffy Tulfo said he has received numerous complaints of poor water quality, weak pressure, and frequent interruptions in areas where PrimeWater operates.
Consumer complaints piled up despite the company’s pledge to upgrade its systems through joint venture agreements (JVAs) with at least 75 water districts affecting 16 million consumers.
Tulfo stressed that the purpose of the JVAs was to allow private providers to bridge financial gaps for water districts by contributing capital and expertise.
“Before you entered into these agreements, the service was good and the water districts were profitable. But after your JVAs, the service became terrible and the water districts ended up losing money,” he told PrimeWater president Roberto Fabrique Jr. at the hearing.
Documents presented at the hearing highlighted large gaps between pledged and actual investments:
In the Metro Surigao Water District, PrimeWater committed P904 million but delivered only P62 million. In Cabanatuan City, P716 million was pledged but just P262 million materialized—though PrimeWater claimed to have delivered P600 million. In Panabo-Tagum, P1.2 billion was promised but only P120 million was spent, while Sta. Cruz, Laguna saw P144 million delivered out of P518 million committed.
Fabrique admitted that actual spending in some districts fell short of commitments, though he disputed Tulfo’s figures for Cabanatuan.
He also acknowledged he was not prepared to provide data on several water districts, including Surigao, saying he was ready to discuss only 16 of the company’s numerous JVAs.
Tulfo also raised labor concerns, alleging PrimeWater failed to absorb water district employees as required by law.
The Office of the Government Corporate Counsel (OGCC) confirmed the shortfalls constitute breach of contract.
OGCC lawyer Tricia Velasco-Catera said districts have legal grounds to terminate their JVAs but often lack resources to pursue arbitration. She noted that while some districts issue pretermination notices, PrimeWater typically counters with temporary restraining orders (TROs) in court.
The senator said the hearing exposed a troubling pattern of “enticing promises, followed by poor delivery,” which has undermined water services across multiple provinces.
