Senator Mark Villar firmly denied in a statement any involvement in PrimeWater’s joint venture activities during his tenure as Secretary of the Department of Public Works and Highways (DPWH) after Malacañang's discovery of a PrimeWater joint venture agreement (JVA) spike with local water districts last 2019, sparking "possible conflict of interest" concerns among the public.
This follows after the Palace ordered an investigation into PrimeWater Infrastructure Corporation due to nationwide complaints over water interruptions, billing issues, and poor service early this year.
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Oversight and Approval Roles
Despite public assumptions, JVAs between water districts and private companies like PrimeWater are not approved by LWUA. Under existing government rules, it is the National Economic and Development Authority (NEDA), through its Investment Coordination Committee, that grants final approval. LWUA plays only a technical advisory role, tasked with reviewing feasibility but not authorizing deals.
The spike in joint venture agreements (JVAs) approved in 2019 was flagged during the initial investigation into PrimeWater’s poor service — at a time when the Local Water Utilities Administration (LWUA) was administratively attached to the DPWH, then headed by Secretary Mark Villar.
Conflict of Interest Concerns
Palace Press Officer Undersecretary Atty. Claire Castro confirmed that Malacañang observed a surge in PrimeWater’s joint venture deals in 2019, prompting concerns over potential conflicts of interest.
“The number of PrimeWater joint venture agreements increased in 2019, during the previous administration and when LWUA was attached to the DPWH, which at the time was led by Secretary Mark Villar,” said Castro in Filipino during a statement.
Although no direct link has been legally established, the timing has fueled calls for accountability for Mark Villar and a comprehensive review of all PrimeWater JVAs with other private concessionaires.
Villar Denies Role in PrimeWater Deals
In response to this, Senator Mark Villar, who led the DPWH from 2016 to 2021, strongly denied in a statement any involvement in PrimeWater’s JVAs.
“I have no direct or indirect ownership or controlling interest in PrimeWater. During my tenure as Secretary of Public Works, I did not participate in any capacity whatsoever in any transactions or potential transactions between PrimeWater and any of its partner districts,” Villar said in his statement. “I have full faith that my service record in those years would bear witness to that focus and commitment.”
Vice President Sara Duterte previously alleged the probe was politically motivated, but Malacañang firmly denied this.
“The President is only responding to mounting complaints from affected consumers. Poor service has no place in the Marcos administration,” Palace Press Officer Usec. Claire Castro emphasized.
PrimeWater Under National Review
The ongoing investigation initiated by the Office of the President is now supported by multiple agencies, including LWUA, NEDA, and COA. LWUA is currently reviewing PrimeWater’s submitted “catch-up plan,” which outlines both short-term measures (such as pipeline repairs and flushing) and long-term infrastructure investments to address recurring service issues.
In parallel, lawmakers and oversight bodies like the Office of the Government Corporate Counsel (OGCC) and NEDA’s Investment Coordination Committee are expected to examine the terms of existing joint venture agreements (JVAs), assess whether PrimeWater has fulfilled its investment obligations, and determine if the company’s service delivery meets agreed standards.
The results of this multi-agency review could set a precedent for how public-private partnerships in the water sector are evaluated and enforced, with PrimeWater’s national operations serving as a test case for broader reforms on transparency, accountability, and consumer protection.
