DCWD to cede septage as compromise to city

As part of the proposed compromise agreement between the City of Dumaguete, Dumaguete Water District and Metropac Water Investment Corporation, the septage waste water treatment facility which is originially owned by the City government will soon be returned under the full control of the city government.

Mayor Felipe Antonio Remollo has been authorized by the City Council to sign the compromise agreement that will hopefully settle the pending case of Injunction with Application for Preliminary Injunction and Temporary Restraining Order filed by the City of Dumaguete against DCWD and MWIC before the Regional Trial Court Branch 41.

It is noted that both the city government and DCWD co-owns the septage facility in Barangay Camanjac pursuant to their Memorandum of Agreement dated June 25, 2009.

However, the City of Dumaguete sued both DCWD and MWIC for the inclusion of the septage facility, without the consent of the former, in the Joint Venture Agreement entered by the two parties that will establish the proposed Joint Venture Company that will take over 80% of DCWD, thereby privatizing the water service utility in the city.

But upon signing of the compromise agreement, DCWD will also execute a Deed of Donation and Release and Quitclaim transferring the septage facility in favor of the City of Dumaguete at no cost to the latter.

Henceforth, both DCWD and MWIC shall no longer use the septage facility or any portion thereof in undertaking the septage phase of the water distribution project in Dumaguete City as contemplated in their Service Contract Agreement and Joint Venture Agreement without the written consent of the City of Dumaguete.

And should DCWD and MWIC pursue the Joint Venture Company, both are committed to comply with all applicable statutory and regulatory requirements including applicable requirements under the pertinent and lawful ordinances of the City of Dumaguete such as those pertaining to the application for and acquisition of the appropriate authority or permit from the local government of Dumaguete City to operate and the payment of any duly imposed and applicable fees and charges.

Upon the signing of the Compromise Agreement, DCWD, MWIC and the City of Dumaguete will immediately cause the termination of the pending case by filing a Joint Motion for Judgment before the concerned court.