TOWARDS THE end of 2025, the Villar Group’s PrimeWater Infrastructure Corp. — which reneged on its promise to provide clients with clean and safe water in their homes– faced intense administrative scrutiny, regulatory investigations and threats of legal action, including potential criminal charges for gross negligence, underinvestments and poor service quality from practically all fronts of the government.
But after the deafening noise, a silence and stillness is being enjoyed by that once powerful and mighty family while frustrated customers are silently bearing the continued discomfort of no safe potable water source that they had stiffly paid for during the heydays of the Villars.
They are still crying for justice for what has been denied them and the filing of criminal charges against the company which promised to invest several billion pesos to the water project but actually only spent a bit over P100 million in all its franchise areas. We are talking here not just of San Jose del Monte in Bulacan, but also Cavite and several areas around the country.
A house resolution calling for a formal probe into PrimeWater’s franchise violations seems to have all been forgotten for now as legislators focus on the impeachment of Vice President Sara Duterte, leaving the aggrieved clients to fend for themselves.
The Marcos administration has ordered an investigation, and some local water districts are moving to pre-terminate their agreements with the company due to failure to meet contractual obligations.
It has been reported that PrimeWater is under multiple investigations for alleged failure to maintain facilities, failure to reduce non-revenue water losses, and failure to release promised capital expenditures. The Local Water Utilities Administration (LWUA) is investigating its performance, with reports citing that its entry into local water districts has not fixed core issues like reliance on unsustainable deep wells, lack of treatment plants, and old pipes. (At this juncture, I strongly believe that LWUA itself must also be investigated for not exerting its regulatory and monitoring mandates, which led to such extensive violations by the Villar company).
As of April 2025, the San Jose del Monte Water District moved to pre-terminate its joint venture agreement with PrimeWater due to failures in providing adequate water supply.
MULTIPLE CHARGES
PrimeWater Infrastructure Corp., owned by the Villar family, faces multiple allegations of service failures, including poor water quality, frequent interruptions, and high rates, leading to calls for the cancellation of its joint venture agreements (JVAs).
The company is accused of failing to meet capital expenditure (capex) commitments, with some projects receiving only a fraction of promised investment, and failing to pay contractors and local water districts.
PrimeWater delivered only a small fraction of its committed infrastructure investments, with one report citing only 11% of promised funds in 7 years, describing it as “criminal negligence.”
It also failed to pay local water districts for profit shares and failed to compensate contractors and labor, with a Rapper report finding 41 out of 77 partners not having been paid. Consumers and groups like Bayan Muna report widespread water interruptions, poor quality, and high charges.
Claims have been filed with the Insurance Commission as PrimeWater has not fulfilled performance bonds from 2023 to 2025.
The Office of the Government Corporate Counsel identified potential breaches in JVAs (joint venture agreements) due to the failure to meet investment and service obligations, leading to calls for contract termination.
Complaints have been filed to cancel JVAs in various areas, including San Jose del Monte, Bulacan.
Senator Raffy Tulfo spearheaded hearings regarding the company’s failure to implement promised capex and poor service.
As of April 2026, Crystal Bridges Holding Corp. is in the process of acquiring 100% of PrimeWater from the Villars.
A San Jose Del Monte City joint venture was terminated in July 2025 due to failure to meet standards and non-revenue water issues. Multiple water districts, including in Pampanga and Cavite, are reviewing or seeking to end partnerships due to failure to meet capital and reducing systems loss.
STILL OPERATING
However, PrimeWater is still operating in 161 cities/municipalities and recently activated a treatment plant in Bacolod to address shortages.
As Inquirer columnist Jake Maderazo described San Jose del Monte’s water situation, the over 650,000 residents stand on the precipice of a humanitarian crisis. Once envisioned as a thriving urban center poised for explosive growth, it has instead become a cautionary tale of corporate negligence, governmental failure, and the profound suffering inflicted upon hundreds of thousands of innocent people.”
The water crisis that gripped this city is not merely an infrastructural problem—it is a moral catastrophe that demands our collective outrage and immediate action.
“For seven long years, residents of San Jose Del Monte endured the consequences of a joint venture agreement that promised hope but delivered only suffering. PrimeWater’s stewardship of the city’s water distribution system represents one of the most flagrant cases of corporate mismanagement and breach of public trust in recent history. The statistics alone are damning, but behind these numbers lie the real stories of children unable to attend school, families rationing water for basic hygiene, businesses forced to close, and communities pushed to the brink of desperation,” Maderazo said.
When PrimeWater entered into its JVA with the San Jose Del Monte Water District in 2018, the company committed to invest P6.8 billion in capital expenditures to modernize water infrastructure and secure additional water sources for the city’s rapidly growing population. This was supposed to be the salvation of San Jose Del Monte, the catalyst that would transform the city’s water system into a model of efficiency and reliability.
CRIMINAL NEGLIGENCE
What actually transpired is nothing short of criminal negligence. In seven years, PrimeWater invested a mere P748 million—just 11% of its commitment. For the second phase of the partnership, which required P2.1 billion in capital expenditures, the company managed to spend only 1% of the allocated funds in the final two years of operation. This is not mismanagement; this is deliberate abandonment of responsibility, he added.
The financial manipulation is equally infuriating. Before PrimeWater’s takeover, the water district was financially healthy, posting a net income of P187 million in 2015-2016. By 2024, this had collapsed to a paltry P2 million. Meanwhile, PrimeWater’s profits soared from P196 million in 2017 to a staggering P1.18 billion by 2023. The company was extracting wealth from the system while systematically starving it of the investments necessary to serve the people. This is profiteering at its most obscene—enriching shareholders while 250,000 residents, one-third of the city’s population, suffer without reliable water access.
The infrastructure situation in San Jose Del Monte is a physical testament to years of neglect. PrimeWater has access to 122.36 million liters of water per day from bulk suppliers, with an additional 50 million liters available if the company had the capacity to distribute it. The water is there. The sources exist. But the infrastructure to move this water to residents’ homes is crumbling.
At Interconnection Point 1 alone, which has a capacity of 90 million liters per day, PrimeWater can only distribute 39 million liters. This is not a supply problem; this is a distribution catastrophe. The company’s failure to upgrade and maintain its network has resulted in a non-revenue water loss rate of 47.16%—nearly half of all water entering the system is lost to leakage before it ever reaches a customer’s tap. This is an operational disaster of monumental proportions.
UNPAID DEBTS
PrimeWater has accumulated P206 million in unpaid obligations to bulk water suppliers—P110 million owed to Bulacan Bulk Water and P96 million to the Metropolitan Waterworks and Sewerage System. A company posting over a billion pesos in annual profits cannot claim financial hardship as an excuse. This is a choice—a choice to prioritize shareholder returns over the obligations that keep water flowing to residents.
Maderazo continued: “Insult is added to injury through PrimeWater’s exploitative tariff structure. While our own Manila Water and Maynilad charge approximately P210-P247 for the first 10 cubic meters of water, PrimeWater charges P265.63 for just the first 5 cubic meters, with punitive incremental charges thereafter. SJDM residents are paying premium prices for substandard service—a grotesque inversion of market logic.
This is particularly cruel because it affects those least able to bear it: low-income households that constitute the majority of San Jose Del Monte’s population. Families are forced to choose between paying inflated water bills and purchasing food. Children go without proper hygiene. Businesses cannot operate. The elderly suffer in silence. But statistics and tariff comparisons, while damning, cannot capture the true human cost of this crisis. The real suffering manifests in ways that pierce the heart:
In January 2026, every school in San Jose Del Monte was forced to suspend in-person classes due to lack of water. Imagine the disruption to 650,000 residents’ children—their education interrupted, their futures jeopardized, their learning trajectory disrupted—all because a private company failed to maintain basic infrastructure.
Residents report receiving murky, unsafe water from their taps. The LGU has discovered that water quality test reports were manipulated, falsifying data to conceal the contamination threatening public health. Children are exposed to waterborne diseases. Families cannot maintain basic sanitation. Hospitals struggle to provide clean water for patient care.
Businesses cannot operate without reliable water. Agricultural activities are crippled. Commercial establishments close their doors. The economic engine of the city sputters and stalls.
Residents report occasions where only air pressure emerges from their faucets—no water, just the mocking hiss of empty pipes. Imagine the desperation of turning on a faucet expecting water and receiving nothing. Multiply this experience across 250,000 residents, day after day, month after month, year after year.
Just when residents hoped for relief, a new crisis emerged. In late 2025, Crystal Bridges Holding Corp., led by Lucio Co, a company with P42.37 billion in total assets—despite allegedly having only P300,000 in capitalization, acquired 100% of PrimeWater. How does a company with minimal capitalization acquire a multi-billion peso enterprise? The transaction raises profound questions about financial capacity and regulatory oversight.
The replacement company, Pamana Water Corp., operates only 15 branches across six provinces with documented problems in Tarlac and Nueva Ecija. Entrusting the water supply of 650,000 residents to a company with such limited experience and proven operational failures elsewhere is reckless endangerment.
Worst of all, despite the change in management, Pamana has engaged minimally with the LGU, offering no concrete plans or timelines to address the crisis. Residents remain in limbo, uncertain whether their water situation will improve or deteriorate further.
LGU WATERS TANKERS
Faced with this catastrophe, the San Jose Del Monte LGU has been forced to become the de facto water provider.
The city spends P370 million annually on water tankers, operating 22 tankers throughout all 62 barangays, 24 hours a day, 7 days a week, to supply water that should flow through pipes. The LGU supplies water to hospitals.
The LGU supplies water to schools. The LGU supplies water to residents who should be receiving it through a functioning distribution system.
This is not a sustainable solution; it is a band-aid on a gaping wound. The LGU is hemorrhaging resources to provide services that a private concessionaire was contractually obligated to deliver.
The termination of PrimeWater’s joint venture agreement on July 28, 2025, was an act of necessity and justice. The company’s violations were exceptional: failure to reduce non-revenue water losses, failure to maintain facilities, failure to release committed capital expenditures, and failure to meet basic service standards.
The non-renewal of PrimeWater’s business permit and the declaration of a State of Calamity represent the LGU’s acknowledgment of the severity of the crisis and its commitment to emergency action.
CORPORATE NEGLIGENCE
The water crisis in San Jose Del Monte is not an act of God or an unavoidable natural disaster. It is the direct result of corporate negligence, regulatory failure, and the prioritization of profit over people.
PrimeWater and Pamana received a sacred trust—the responsibility to provide one of life’s most essential commodities to hundreds of thousands of residents. These companies betrayed that trust completely and utterly.
For seven years, 250,000 residents of San Jose Del Monte have suffered deprivation that no community in a developing nation should endure. Children have missed school.
Families have rationed water. Businesses have failed. Health has been compromised. And throughout it all, their private water companies extracted billions in profits while delivering nothing but broken promises.
As San Jose Del Monte city works to get back on its feet, this crisis must be a turning point. It must be a time when the responsible water companies are held accountable, when their wrongdoings are punished, and when the law protects residents’ rights to important services.
The 650,000 city residents deserve nothing less than full justice and the return of dependable, affordable water service. Anything less would be another betrayal of a community that has already endured too much, Maderazo concluded.