Customer-Perceived Service Performance of Private Utility Partners under NEDA-Guided Joint Venture Agreements with Water Districts

Joint Venture Agreements (JVAs) between water districts and private partners have become common in the Philippines to improve water service delivery in the recent years. However, public complaints and pre-termination of contracts raise questions about whether these partnerships achieve their intended objectives. This study evaluates service performance of private partners in JVA-operated water districts through customer perceptions and regulatory compliance assessment under the 2023 NEDA Guidelines. Using the SERVPERF model, data were collected from 264 customers across 19 provinces through snowball sampling. The questionnaire measured five service dimensions: tangibles, reliability, responsiveness, assurance, and empathy on a seven-point likert scale. Pearson correlation and multiple regression analysis examined relationships between SERVPERF dimensions and customer satisfaction. Commission on Audit (COA) reports from six water districts were analyzed to assess alignment with NEDA Guidelines and integrated with survey data. Results reveal all five SERVPERF dimensions scored below moderate levels. Reliability received the lowest rating (M = 2.98), followed by Tangibles (M = 3.28) and Empathy (M = 3.32). Regression analysis showed all dimensions significantly predict satisfaction (R² = 0.861), with Empathy (? = 0.407) and Reliability (? = 0.288) as strongest predictors. COA findings revealed systemic violations: failure to submit mandatory reports, failure to install water service connection, water quality violations, high non-revenue water rate, unverifiable capital expenditures, and chronic operational deficiencies since 2019. Integration of survey and audit data demonstrates that operational failures directly correspond to poor customer perceptions. The findings indicate significant discrepancy between NEDA Guidelines and actual JVA implementation. Weak monitoring and inadequate enforcement allow poor performance to persist. Current JVA arrangements fail to improve water service delivery, with the most important dimensions to customers (Empathy and Reliability) being areas where private partners perform worst. Systemic reforms in enforcement of projects, clearer penalties and financial transparency are necessary to ensure these partnerships serve public welfare rather than private interests.