Court asked: Stop water district deal

A Compromise Agreement seeking the annulment of the much politicized City Water District Waste Water Treatment or Septage facility MOA, was signed by both City Government and the Dumaguete City Water District which turned over the water septage facility to the total ownership of the City Government.

This virtually held as moot the case of Injunction and Temporary Restraining Order filed by the City Government against the City Water District and Metro Pacific Water Investment Corp.

The signatories of the landmark agreement which provided a win-win solution all parties were City Mayor Felipe Remollo and City Water District GM Esperato Dicen including Janet Sanalila AVP of Metro Pacific.

Both City and Water District are now awaiting Court approval of their compromise agreement dated June 27, 2019 before the case is finally dropped and dismissed. No similar case for or against the parties will henceforth be filed to maintain industrial peace.


When the water district and MetroPac agreed on a joint venture to provide water services to Dumaguete’s rising population, the City Government which also half-owned the multi million-peso water septage facility sought a TRO and sued to recover the same since it was never mentioned as part of the DCWD joined venture with Metro Pacific, plus damages.

Sensing a favorable decision on one side, the DCWD agreed on a compromise agreement which ended with a win-win solution to both plus the third party which was the MetroPacific service provider.

Among others, the water district agreed to donate with quitclaim its ownership of half or 50% the septage facility to the City Government and its employees be absorbed by the City for six months without salary diminution.

Thus the entire water septage facility is now owned by the City Government.


The reason is that, eventually, the joint venture of the Water District and Metro Pac, will need a water septage facility.

What will ensue is that the City Government will possibly lease such facility to the water district with a fair and just rental thus giving the City Government ample income.

A septage facility is where water waste and those residents with septic tanks will have their human wastes purified and recycled to meet the environment needs.

The agreement provides that in the event the water district will be using the water septage facility, the DCWD will need a permit from the City Government of Dumaguete. Cash accounts will be settled mutually by both parties.

Henceforth, the joint venturers (Water District and Metro Pac) will pay the City government all fees, licenses, and comply with all statutory requirements and permits as any private water service provider.

Most of all, the parties agreed to be transparent as an open-book for City and public scrutiny, providing all data and figures on its transactions.


Moreover, the City Mayor will now have the sole authority to appoint the new board members of the future Water District board with finality.(PD 768 as amended)

Finally, all parties will consider all cases pending against each other , as terminated providing that no similar case will be filed in the future against any and both parties.

And that any breach of such agreement will authorize the innocent party to apply for a writ of execution for the purpose of compelling compliance of the terms and conditions of such compromise agreement.