Consumer Group Challenges Davao Water District's Proposed 30% Rate Increase
A prominent Mindanao-based advocacy organization has raised significant concerns regarding the Davao City Water District's proposal to implement a substantial water rate adjustment. The Mindanao Alliance for Progress has issued a formal statement questioning the justification for what would become a cumulative 90 percent increase in water charges since 2022 if the latest proposal is approved.
Questioning the Justification for Repeated Increases
The advocacy group has expressed serious reservations about DCWD's rationale for the proposed 30 percent rate hike, noting that the utility has consistently cited future expansion and anticipated city growth to support multiple adjustments over the past three years. "While DCWD frames this as a necessary step for future expansion and the city's anticipated growth, the reality is that the public is being subjected to a massive, consolidated price surge disguised as separate, smaller adjustments," MAP stated in their official communication.
MAP highlighted that DCWD had already implemented a significant 60 percent increase from 2022 to 2024 using similar arguments now being presented for the additional hike. This pattern has prompted growing concerns about transparency in the utility's long-term planning and financial projections.
Surplus Supply Raises Additional Questions
The consumer advocacy group emphasized that the proposed increase appears particularly questionable given DCWD's own acknowledgment that Davao City currently enjoys a surplus water supply. The proposal is currently under review by the Local Water Utilities Administration, which must seriously scrutinize it, especially as DCWD itself admits that the city currently enjoys a surplus of water, MAP noted in their statement.
MAP stressed that any water rate adjustment should be accompanied by clear and verifiable benefits for consumers, calling on DCWD to provide detailed accounting of how previous rate increases have translated into tangible improvements in:
- Service reliability and consistency
- System efficiency and infrastructure
- Coverage expansion throughout the city
- Long-term water security measures
Ongoing Service Concerns in Specific Areas
The organization specifically highlighted persistent water supply issues in Davao City's Second District, where residents continue to experience inconsistent service despite previous rate adjustments. "Rate increases should translate into visible benefits for consumers and communities, particularly in areas like the city's Second District that continue to await consistent and adequate water supply," MAP emphasized.
Additionally, the group called for greater transparency regarding DCWD's joint venture with Apo Agua, urging full disclosure of the financial structure and long-term implications of this partnership on water affordability and security for Davao residents.
DCWD's Defense of the Proposed Adjustment
In response to MAP's concerns, DCWD defended the proposed rate adjustment in January, stating through spokesperson JC Duhaylungsod that the increase is necessary to sustain reliable service while maintaining affordability. The water district emphasized that it shares MAP's concern about keeping water accessible to all households, particularly vulnerable sectors of society.
DCWD explained that customer payments are reinvested to maintain service quality and ensure long-term sustainability, noting that most of its nearly 270,000 service connections receive 24/7 water supply with adequate pressure. The utility cited several achievements including:
- Achieving climate resilience in water availability
- Maintaining low non-revenue water levels indicating efficient operations
- Developing infrastructure to serve growing demand
The water district stated that further investments are required to improve service for remaining customers, expand coverage, develop and protect water sources, and maintain financial sustainability. As a self-sustaining government-owned and controlled corporation, DCWD relies on regulated and phased water rate adjustments to fund these essential plans.
Regulatory Process and Public Consultation
DCWD clarified that the proposed 30 percent increase over two years represents the minimum adjustment needed to sustain operations, warning that further delays could affect service reliability and long-term sustainability amid rising operating costs, aging infrastructure, and future water security demands.
The agency emphasized that the rate-setting process includes both public consultation and regulatory oversight. "This is why the rate adjustment process includes a public hearing, which we conducted last October 24, 2025, with barangay representatives, stakeholders, and regulatory evaluation by the Local Water Utilities Administration," DCWD explained.
Continued Advocacy for Consumer Protection
Despite DCWD's assurances, MAP maintains that any decision on water rates must prioritize public interest, equitable access, and long-term water security. The group has called for full transparency before any increase is approved, reiterating that water is a basic necessity that must remain accessible and equitably distributed throughout Davao City.
MAP had previously voiced similar concerns in December 2025 as DCWD signaled plans for another rate adjustment, stating at the time: "As we approach a new year, many families in Davao City are looking ahead with hope — hope for stability, for fairness, and for the simple assurance that basic needs will remain within reach. One of those basic needs is water."
The advocacy group continues to urge DCWD to clearly explain how water service reliability will be sustained over the long term, particularly in relation to its partnership with Apo Agua, while emphasizing that decisions on water rates should be guided by data-driven discussions and public accountability.
