The Iloilo City Regional Trial Court (RTC) has declared “null and void” Regulation Ordinance No.118 that grants a franchise to South Balibago Resources, Inc. (SBRI) to distribute water in Jaro district, Iloilo City.
In a 10-page decision, RTC Branch 37 Presiding Judge Marie Yvette Go said the Iloilo City Government’s move to grant SBRI a franchise to operate a water distribution system in the city was not legal.
The ordinance was approved by the Sangguniang Panlungsod and signed by dismissed mayor Jed Patrick Mabilog in 2016.
“Undoubtedly, [the ordinance] contravenes the provisions of the Water Code [ or Presidential Decree No. 1067] as it arrogates unto the Iloilo City Government the power to control and regulate the use of water which is by virtue of the the Water Code pertains solely to the National Water Resources Board NWRB,” she stated in the decision dated March 2, 2020.
“[The ordinance] contravenes the Water Code as it is an encroachment into the authority of the NWRB. The use of water resources is under the regulatory power of the national government which is explicitly provided in the Water Code,” she further stated.
According to Go, the city government “acted in excess of powers granted to it as a local government unit (LGU) rendering the ordinance ‘ultra vires'” when it “enacted the assailed ordinance.”
The presiding judge also cited Opinion No. 18 issued by the Department of the Interior and Local Government which states that “LGUs are bereft of authority to grant water and sanitation franchise.”
SBRI “strongly argued” that the city government “has power and authority to grant a franchise invoking the provisions of the Local Gocernment Code. 
“It rationalizes the need to address the lack of adequate, safe, and potable water supply in the district of Jaro which the plaintiff has neglected to serve despite its decades of existence, and which was the reason the subject ordinance was passed.”
Go said the city government’s intention “may be laudable,” but its reliance on the provisions of the Local Gocernment Code does not convince.” 
The civil case seeking the nullification of the franchise granted to SBRI was filed by Metro Iloill Water District (MIWD), which operates as a local water district in Iloilo City and the towns of Leganes, Pavia, Sta. Barbara, Cabatuan, Maasin, San Miguel and Oton.
Lawyer Roy Villa, MIWD legal counsel, said the were “glad” that the court ruled in favor of them. 
“Ginhimo ini sang MIWD para mapaintiendi not only sa city of Iloilo but also sa other LGUs nga wala sila sang otoridad nga maggrant sang water franchise,” he told IMT NEWS.
“Dapat ang LGU kag ang water district nagakooperar kay pareho man lang ni purpose nila which is magserbisyo sa mga tawo. Ang sa previous administrations, daw lain ang natabo, imbis nga buligan and water district and private water companies ila ginsuportahan,” he added.
Despite the nullification of its franchise, SBRI, according to Villa, could still continue its operation because it was able to secure a Certificate of Public Convenience from NWRB.
Aside from SBRI, the city government also issued franchises to other private water companies to operate in the city.IMT