Baguio Water District Seeks Rate Increase to Fund Ambitious Development Plan

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The Baguio Water District (BWD) is pushing for a rate hike to support a comprehensive 10-year development plan aimed at meeting the growing water needs of Baguio City and ensuring high-quality service for its 49,000 customers. During a public hearing on January 21, 2025, BWD’s general manager, Salvador Royeca, outlined the proposed rate adjustments, which would see an initial 30% increase starting in March or upon approval by the Local Water Utilities Administration (LWUA), with further increments planned for 2026 and 2027. The new rates will vary based on consumer classification and usage, starting at PHP40.50 per cubic meter and potentially rising to PHP60.75 by the third tranche. The proposed increase is intended to fund a PHP3.2-billion capital expenditure program spanning from 2025 to 2034. Royeca emphasized the necessity of these funds to enhance water sources and meet the demands driven by Baguio’s economic growth. The development plan includes drilling 10 new deep wells annually, extending pipelines, and improving water supply systems, with significant investments also earmarked for water treatment to ensure potability. Additionally, BWD plans to install solar panels at major pumping stations to reduce power costs, which currently average PHP19 million monthly. Other initiatives include the installation of generator sets and the purchase of equipment to boost operational efficiency. Royeca highlighted that these projects have already helped reduce non-revenue water from 31.89% in 2013 to 18.11% in 2024. Rayann Victorio from LWUA noted that BWD does not receive government subsidies, underscoring the importance of the rate increase for the district’s financial sustainability and the continued provision of safe, potable water. Royeca expressed optimism that these efforts would result in an excess of 80,000 cubic meters of water within three years.