Group slams standby costs of MWSS projects
A CONSUMER group on Friday raised concern over the persistent standby costs incurred in the projects undertaken by the Metropolitan Waterworks and Sewerage System (MWSS).
United Filipino Consumer and Commuters-Water for All Refund Movement (UFCC-WARM) National President Rodolfo Javellana Jr. said in a media forum held on Friday at Club Filipino in Greenhills, San Juan, that these standby costs «continue to burden the Filipino people with unnecessary expenses.»
Javellana said standby cost, as defined, is the penalty or payment made by MWSS to contractors whenever a project stalls due to negligence, fault or deficiency of the agency.
He cited as an example the transportation of a Tunnel Boring Machine (BM) from another country to the Kaliwa Dam Project site in Rizal. However, the MWSS has not yet obtained a quarry permit from the local government, so the TBM cannot be used yet.
He said that based on the contract, the MWSS will pay the contractor the standby cost.
«We demand an answer as to why the MWSS consistently incurs standby costs in their projects,» he said.
He cited the Sumag River Diversion Project (SRDP), an expansion project of the MWSS for the supply of the Angat Dam reservoir, for which the taxpayers have been paying the standby costs for five years.
Advertisement«If Congress has its pork barrel, MWSS seems to have its standby costs,» he said.
He also raised the question of why the MWSS issued a notice to proceed with the contractor when there were still permits lacking and pre-work requirements, «knowing that standby costs will be incurred because of these.»
Javellana said during the forum that projects are often delayed «because someone profits from standby costs.»
«The longer the project is delayed, the higher earnings from standby costs,» he said.
AdvertisementHe called on the MWSS to «review its practices, prioritize the welfare of the public, and cease the unjust imposition of standby costs and manipulation of processes.»
UFCC-WARM is also questioning the release of advance payments by the MWSS to the foreign contractor of the Kaliwa Dam project amounting to P1.828 billion.
