After 7 years of privatization
Water Remains Unaffordable, Inaccessible

Water has become more commodified as a result of privatization. While consumers are burdened with water rate hikes, indigenous peoples are deprived of water as mining firms take control of their water resources. The First National Convention on Water held Aug. 10 to 11 criticized the corporate offensive on water resources.

By RONALYN V. OLEA
Bulatlat

Since the privatization of the Manila Waterworks and Sewerage System (MWSS) in 1997, water rates in Metro Manila have increased by as much as 400 percent.

As if this is not enough, Renato Reyes Jr., spokesperson of Bagong Alyansang Makabayan (BAYAN or New Patriotic Alliance) last week added that private firms Maynilad and Manila Water Services which took over the MWSS failed to meet the expected coverage of their services. In Maynilad’s case, only 57 percent of its clients have 24-hour water service.

Reyes made the revelation during the First National Convention on Water held Aug. 10-11 in UP Diliman, Quezon City.

Like the two water concessionaires in Metro Manila, water rates in other regions also increased.  There was a 125 percent hike in Leyte in Eastern Visayas. Meanwhile, Bacolod City in Negros Occidental implemented a 15 percent to 34 percent increase  every year.

The water rate in Baguio City in northern Philippines has also increased by 50 percent since 2000.

Privatization

In the same convention, Ferdinand Gaite, chairperson of Confederation for the Unity, Advancement and Recognition of Government Employees (Courage) stressed that the government deliberately left MWSS to deteriorate further to justify its privatization.

“Priority should be to provide the much-needed resources to ensure the delivery of basic services,” Gaite said. “MWSS contributes P1 billion ($17.96 million, based on an exchange rate of P55.68 per US dollar) to the coffers of the government but this was never used to improve services.”

Reyes said, “Ang pinakamalaking sampal sa mukha ng pribatisasyon ay ang nangyari sa Maynilad kung saan hindi na ito nakapagbayad ng mga concession fees sa gobyerno at ipinasa na ang utang ng Maynilad sa taongbayan.” (The biggest slap on the face of privatization is what happened to Maynilad where it failed to pay concession fees to the government and it passed on its debt to the people.)

Reyes also opposed the bailout of Maynilad which the latter proposed to the government. He said that the ballooning budget deficit must be enough reason for the government to reject the bailout.

Despite the MWSS experience, privatization of water services and water resources in other cities and provinces are underway. In a national consultation on water organized by BAYAN last June, water districts in Baguio City, Cebu, Davao, Tacloban, Iloilo and Bacolod were reportedly being privatized.

Reyes noted the entry of business tycoons Lopez, Ayala and Aboitiz in many privatization projects.

Antonio Tujan Jr., research director of Ibon Foundation, said that while privatization has been reversed in other countries, the Macapagal-Arroyo administration refuses to take over and operate Maynilad even as the latter asked it to do so. “But this could also be a charade (of Arroyo and Maynilad),” he said.

President Gloria Macapagal-Arroyo’s Executive Order 279 virtually calls for the eventual privatization of water districts. There are about 200 water districts nationwide.

Threat to the survival

Meanwhile, Joan Carling, chair of the Cordillera People’s Alliance (CPA) expressed the indigenous peoples’ outrage over the private destruction of the river system. 

Carling cited the cases of Benguet Corporation and Lepanto Corporation in Benguet province, northern Philippines. Both mining corporations were granted water permits, with their areas covering rivers, springs and creeks used by indigenous peoples for their domestic and agricultural needs.

“Water is being made a commodity for profit of big corporations,” Carling said.

“The issuance of these permits is an issue of denial for the indigenous people.  It is a direct threat to our continuing survival,” said the CPA chair.

Carling also cited the San Roque Dam Project in eastern Pangasinan, which started operation last year. Hundreds of farmers lost their land and livelihood.  She said at least 350 families have not been compensated for the land.

The CPA asserted the government must stop issuing water permits. 

Foreign aid

Reyes noted the intervention of foreign lending institutions to the privatization of the said water districts. 

Based on the reports from regions, the Asian Development Bank (ADB) has $1-billion interest in Laiban Dam and P30-million ($538,793.10) loan for a barangay water system in Samar, in central Philippines.

The Japan Bank for International Cooperation (JBIC), meanwhile, infused P537 million ($9.64 million) for the Bacolod Water District.  The Australian Aid (AusAid) handles the Baguio Water District rehabilitation project which costs P797 million ($14.31).

Abundant

Reyes said that access to water is a question of who controls the country’s water resources.

He said that a 1997 government study cited that while the country has abundant water resources, 63 percent of the population does not have access to potable water and 47 percent of the agricultural lands lack irrigation.

GMA’s promise

In her inaugural speech and state of the nation address (SONA), President Macapagal-Arroyo vowed to provide water to all barangays. However, Tujan said that Arroyo’s program is anti-poor and premised on privatization.

“With the government’s distrust to local government units, corporations and foreign funding come in. Water would (therefore) still be expensive,” Tujan said. 

Government control 

Emmie de Jesus, secretary general of Gabriela, said that water should be provided by the state. She said that privatization proves to be senseless. 

De Jesus said the government should take control of the water industry.  She clarified, however, that the kind of government to do so must be “upright.” Bulatlat

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