On May 8, the Metro San Fernando Water District (MSFWD) in La Union announced terminating its joint venture agreement (JVA) or partnership with PrimeWater Infrastructure Corporation due to numerous agreement violations. The MSFWD took back direct management, control, and operation of the water service and supply in the city of San Fernando and four other towns.

The MSFWD and PrimeWater entered into a 25-year agreement in 2016. According to MSFWD secretary general Eric Carpina, they terminated the agreement in the name of “public interest.”

He said they received many complaints from consumers regarding PrimeWater’s poor service. These were reportedly brought before the Municipal Council and Provincial Council.

On January 2, the MSFWD sent a notice to PrimeWater regarding its intention to withdraw from the JVA. Since then, the agency entered into 90 days of negotiations to resolve the issue, but PrimeWater reportedly took no action. This deadline ended on April 3. The MSFWD extended it for another 30 days.

Before entering the JVA, the MSFWD was able to supply water to 63 barangays. When PrimeWater took over, 22 barangays lost their water supply. According to the MSFWD, since April 2022, it has been sending notices to PrimeWater regarding the company’s repeated violations of its obligations, but it received no response.

Bagong Alyansang Makabayan (Bayan)-Ilocos expressed support for the people of La Union in their move to reclaim public control over MSFWD’s water service. “This is a victory for the people’s demand for accessible, reliable, and public water services,” the group said.

It emphasized its call to scrap all forms of privatization in water service, which it said “has only led to hardship and injustice for consumers and ordinary citizens.”

Bayan-Ilocos also joined the growing call to reclaim and cancel all JVAs with PrimeWater nationwide. “All those responsible be held accountable for undermining public service,” it said.

PrimeWater Infrastructure Corporation is a company owned by the big comprador bourgeois Villar family.

Throughout the Philippines, PrimeWater now controls 161 water districts from cities and municipalities through JVAs. As with the MSFWD, the company is also facing various complaints due to poor service.