Tacloban: The Leyte Metropolitan Water District (LMWD) is currently assessing its future actions concerning the proposed termination of its 25-year joint venture with PrimeWater Infrastructure Corp. This development comes in the wake of an ownership change, as the Villar family has reportedly sold PrimeWater to business tycoon Lucio Co.
According to Philippines News Agency, LMWD information officer Ma. Teresa Pascua stated that the agency has referred its notice of termination to its legal department for further evaluation. This decision follows reports that Crystal Bridges Holding Corp., owned by Lucio Co, has acquired full ownership of PrimeWater.
Pascua noted that LMWD has not yet received any official communication from PrimeWater concerning the change in ownership. The Villar group announced last month that the acquisition was complete. On May 5, 2025, LMWD formally notified PrimeWater of its unsatisfactory performance under the joint venture agreement, leading to a notice of pre-termination two months later. PrimeWater responded on October 6, 2025, requesting a three-month extension to submit its reply.
LMWD had earlier reported several issues with PrimeWater's performance, including missing key performance targets like the planned 58,000 water service connections. Other concerns included high system losses, low water pressure, failure to meet the target volume of water, slow repair response times, and delayed supplier payments.
Over the past five years, PrimeWater achieved only 54,809 connections, short of the 58,000 target. The non-revenue water stood at 34 percent, exceeding the acceptable loss level of 30 percent. Current water pressure averages two pounds per square inch (PSI), significantly below the ideal 10 PSI. Daily water delivery is at 63 million cubic meters, falling short of the promised 88 million cubic meters.
Pascua explained that these issues were identified during a review last year, marking the completion of the joint venture's first five years. Since the agreement's inception, PrimeWater has only rehabilitated the old treatment plant and conducted pipe-laying works, rather than developing a new water source in Jaro, Leyte, as initially planned.
Additionally, PrimeWater failed to develop the Kabayongan River water source in Jaro town, a key project component. LMWD entered the joint venture with PrimeWater in 2019, with the Villar-owned firm committing to invest PHP6 billion to enhance water services in Tacloban City and several towns.
On April 30, 2025, Malaca±ang announced that President Ferdinand R. Marcos Jr. would order an investigation into PrimeWater's operations amid allegations of service disruptions and high water rates, following calls by Bulacan officials for a congressional investigation.
As of 2021, PrimeWater operates in 100 water districts nationwide, according to the Local Water Utilities Administration (LWUA). Under Philippine law, water districts cannot be sold to private corporations, leading PrimeWater to operate through joint venture agreements.
Source: Philippine News Agency
