BANTAY TUBIG denounces in the strongest terms the bailout of Maynilad Water Services Inc. The bailout is a disastrous eventuality that we had warned about since last year, only to be met with denials from both Benpres and the Arroyo government. Both of them now claim in unison that the deal is not a bailout, that it is in fact the best scenario for government, taxpayers and consumers,
and even that it is President Arroyo's gift to the Filipino people so that we can have undisrupted access to clean water (March 28, Philippine Star). All these claims are
demonstrably false.
The Maynilad deal is a bailout. It is a bailout simply because the government is allowing Maynilad to
pay less than what it owes government. It is sparing the Lopezes from the consequences of it bad management practices and substandard service record.
1) Maynilad owes government 8 billion pesos in unpaid concession fees or $120 million dollars (6.6 billion pesos) for the performance bond. Government has agreed to a cash payment of 2.57 billion
pesos and draw only $ 50 million dollars (roughly 2.8 billion pesos) from the performance bond. Why?
2) TheLopezes keep saying that this is not a bailout because they are writing off their share of the equity in Maynilad. Government is saying that the government is not trading off Maynilad debts at a loss because it is gaining majority control of the concession in this "takeover".
First, government is needlessly acquiring more equity than its exposure. Government needs only to collect 8 billion pesos in unpaid concession fees, but has taken over
61% of Maynilad. This is not an equivalent exchange.
Second, Maynilad's liabilities as of the end of 2003 were estimated at P18 billion, six times the value of its recoverable assets of merely P3 billion. Why should the
government, which is facing 3.2 trillion dollars of debt, acquire a losing proposition?
The Maynilad deal is the worst option for government. There are two alternative options for government according to the concession agreement. One, it could have declared a "concessionaire event", which would end the contract with Maynilad at fault. Two, it could have searched for a Qualified Replacement Operator (QRO) upon Maynilad's default. Both these options would have
netted government the performance bond and the unpaid concession fees. Still, government opted
for an "amicable settlement". Why?
BANTAY TUBIG has in fact acquired information that the MWSS Board itself commissioned three separate studies into Amendment No. 2 (which prescribes this bailout
settlement). ALL of these studies-legal, financial and technical-concluded that the bailout is not only disadvantageous, it is actually illegal. Still, the Office of the Government Corporate Counsel (OGCC), under the direction of former Usec. Manuel Teehankee, urged the Board to approve the deal!
The Maynilad bailout is not a gift but a curse. Since the bailout became public, President Arroyo has not been able to justify why she has allowed the MWSS and the OGCC to enter into this grossly disadvantageous and unjust settlement. She claims that it will prevent the disruption of water service. Madame President, the west zone has been suffering from service disruption for the last
seven years under Maynilad. It has failed miserably to fulfill its performance obligations and expansion targets.
In any case, the MWSS has had a contingency plan for a takeover that has been in place over the last two years. We cannot know how adept the MWSS is at managing the utility after seven years of privatization, but it cannot be worse than Maynilad and will cost us a few billion pesos less.
If President Arroyo truly wanted to give the Filipino people a gift, she should have stopped coddling
the Lopezes, instructed her lieutenants to collect on the performance bond and mobilized her technocrats to address the colossal water problems wrought by Maynilad
on the west zone. By stubbornly defending this bailout, we can clearly which side she's on.
BANTAY TUBIG will oppose the Maynilad bailout with all weapons at its disposal. We shall not allow oligarchs and their nominees to bleed this country drier than it already
is.
Showing posts with label public utility. Show all posts
Showing posts with label public utility. Show all posts
Oct 29, 2003
MAYNILAD TO BLAME FOR TONDO DEATHS DUE TO WATER CONTAMINATION
The news reports about the death of four (4) people and the hospitalization of 200 more in Tondo, Manila due to contaminated water are greatly saddening and extremely alarming. Doctors who attended to the victims suspect a cholera outbreak via the water system in the area—an outbreak that could easily extend to other localities that are part of the same deteriorating pipe network.
Maynilad Water Services Inc. (MWSI) is directly to blame for this disaster. Its officials have been quoted in a radio interview as saying that its pipe networks in Tondo are indeed old, but that their company does not have funds to repair them. This lack of funds has been Maynilad’s perennial excuse for its terrible performance ever since it took over the concession in 1997. Its record over the last six years will show how it has failed to comply with nearly all the standards set forth in the original concession agreement: it has raised prices by 400%, failed to expand to target areas, failed to ensure 24-hour water supply to service areas, failed to reduce leaks, spillage and water theft, failed to increase water pressure and improve water quality. In December 2002 it terminated its contract, and has withheld investments since then. As a result, the conditions in its service areas in the west zone have deteriorated even further.
Yet even its clients die, fall ill, suffer water shortages, pay onerous rates and endure other abuses, Maynilad refuses to acknowledge any responsibility for the general breakdown of its operations. The closed-door arbitration process between government and Maynilad continues, still unable to establish Maynilad’s obvious role in the decline of Metro Manila’s water situation to this pathetic state.
The levels of water quality, water pressure and the extent of pipe damage are not merely technical details in the concession agreement; these are critical issues that pose grave dangers to public health. Breaches in the pipe system also have security implications in this post-9/11 era. (The unfortunate drowning of a man in a major Manila Water pipe last May illustrated the dangers of a vulnerable pipe network.) The disaster in Tondo underscores a basic reality: we cannot live without safe, clean and adequate water to drink and use.
BANTAY TUBIG condemns this reprehensible tragedy and takes Maynilad Water Services Inc. (MWSI) to task for the deaths and illness of the victims. We call on the Metropolitan Waterworks and Sewerage System (MWSS), the Department of Public Works and Highways, the Department of Health, local government units in Maynilad areas and the Metro Manila Development Authority to act immediately to avert a public health crisis. The national government, the MWSS and other architects of the water privatization policy must make Maynilad accountable for its gross neglect and impunity, and prepare to take over Maynilad areas to safeguard public welfare.
BANTAY TUBIG Network
(Philippine Water Vigilance Network)
BANTAY TUBIG Network: AKBAYAN Party-list, Alliance of Progressive Labor, CIBAC Party-list, Focus on the Global South-Philippines, Freedom from Debt Coalition, Institute for Popular Democracy, Tambuyog Development Center, Ma. Teresa Diokno-Pascual
Maynilad Water Services Inc. (MWSI) is directly to blame for this disaster. Its officials have been quoted in a radio interview as saying that its pipe networks in Tondo are indeed old, but that their company does not have funds to repair them. This lack of funds has been Maynilad’s perennial excuse for its terrible performance ever since it took over the concession in 1997. Its record over the last six years will show how it has failed to comply with nearly all the standards set forth in the original concession agreement: it has raised prices by 400%, failed to expand to target areas, failed to ensure 24-hour water supply to service areas, failed to reduce leaks, spillage and water theft, failed to increase water pressure and improve water quality. In December 2002 it terminated its contract, and has withheld investments since then. As a result, the conditions in its service areas in the west zone have deteriorated even further.
Yet even its clients die, fall ill, suffer water shortages, pay onerous rates and endure other abuses, Maynilad refuses to acknowledge any responsibility for the general breakdown of its operations. The closed-door arbitration process between government and Maynilad continues, still unable to establish Maynilad’s obvious role in the decline of Metro Manila’s water situation to this pathetic state.
The levels of water quality, water pressure and the extent of pipe damage are not merely technical details in the concession agreement; these are critical issues that pose grave dangers to public health. Breaches in the pipe system also have security implications in this post-9/11 era. (The unfortunate drowning of a man in a major Manila Water pipe last May illustrated the dangers of a vulnerable pipe network.) The disaster in Tondo underscores a basic reality: we cannot live without safe, clean and adequate water to drink and use.
BANTAY TUBIG condemns this reprehensible tragedy and takes Maynilad Water Services Inc. (MWSI) to task for the deaths and illness of the victims. We call on the Metropolitan Waterworks and Sewerage System (MWSS), the Department of Public Works and Highways, the Department of Health, local government units in Maynilad areas and the Metro Manila Development Authority to act immediately to avert a public health crisis. The national government, the MWSS and other architects of the water privatization policy must make Maynilad accountable for its gross neglect and impunity, and prepare to take over Maynilad areas to safeguard public welfare.
BANTAY TUBIG Network
(Philippine Water Vigilance Network)
BANTAY TUBIG Network: AKBAYAN Party-list, Alliance of Progressive Labor, CIBAC Party-list, Focus on the Global South-Philippines, Freedom from Debt Coalition, Institute for Popular Democracy, Tambuyog Development Center, Ma. Teresa Diokno-Pascual
May 8, 2003
GET RID OF PPA!
Workers from the Alliance of Progressive Labor joined the mass action led by the Kuryente alliance in Mendiola to denounce President Gloria Arroyo's scheme of lowering electricity rates as inadequate and deceptive.
"The real problem is the existing onerous contracts between government and the Independent Power Producers. Any scheme that would continue to honor the PPA would still be detrimental to the public," Josua Mata, secretary general ofAPL, said.
President Arroyo, in her Labor Day message last year, announced that PPA charges of the National Power Corporation would be cut down by P1.25 per kilowatt hour but not the PPA of Meralco which is privately owned by the Lopez family.
In a statement, APL said that the government deceived the consumers last year when it lowered PPA charges but lengthened the period of payment from 7-10 years to 15-20 years depending on the expiration of the contracts. The labor group averred that since October PPA charges began increasing again almost monthly, which now total to P3.00 per kilowatt hour more than the previous charges.
The labor group welcomed the Supreme Court decision to uphold the P28 Billion Meralco refund but it has doubts on how the company would refund it and if the poor would really benefit from it. The group is keen on the proposal to convert the refund to people's shares of stocks and to have a representation in the Meralco board. "This would check further dealings of Meralco that would be detrimental to the consumers," Mata concluded.
"The real problem is the existing onerous contracts between government and the Independent Power Producers. Any scheme that would continue to honor the PPA would still be detrimental to the public," Josua Mata, secretary general ofAPL, said.
President Arroyo, in her Labor Day message last year, announced that PPA charges of the National Power Corporation would be cut down by P1.25 per kilowatt hour but not the PPA of Meralco which is privately owned by the Lopez family.
In a statement, APL said that the government deceived the consumers last year when it lowered PPA charges but lengthened the period of payment from 7-10 years to 15-20 years depending on the expiration of the contracts. The labor group averred that since October PPA charges began increasing again almost monthly, which now total to P3.00 per kilowatt hour more than the previous charges.
The labor group welcomed the Supreme Court decision to uphold the P28 Billion Meralco refund but it has doubts on how the company would refund it and if the poor would really benefit from it. The group is keen on the proposal to convert the refund to people's shares of stocks and to have a representation in the Meralco board. "This would check further dealings of Meralco that would be detrimental to the consumers," Mata concluded.
Nov 22, 2002
MAYNILAD: FAILED SERVICE, FAILED BUSINESS
Beginning January 2003, consumers in the Maynilad areas will be billed 25 pesos per cubic meter from the current 15.46, while those in Manila Water areas will be billed 17 pesos from 6.75. While both rates are burdensome,Maynilad’s case is especially appalling because of the following reasons: 1) It has failed to comply with its expansion and service targets. Many of its target areas remain waterless, while those with connections suffer from low water pressure and have to make do with only several hours of water supply each day. On top of these, it has failed to lower the volume of non-revenue water (NRW) while incurring astronomical operating costs, probably for the huge salaries of its executives. 2) It has refused to pay concession fees to the MWSS since last year and threatens to withhold further payments until 2007. 3) It is asking the national government for a bail-out in terms of loan guarantees to the tune of P14 billion! Aba’y talagang abusado! Palpak na nga, humihingi pa ng premyo! Manila Water has numerous transgressions, too, but Maynilad takes the cake for inefficiency and greed.
The water system was privatized with the aim of improving service, expanding connections and maintaining reasonable rates. Metro Manila was divided into 2 sections assigned to two separate concessionaires to encourage competition by checking one’s performance and prices against the other. There was a Concession Agreement—a purportedly inviolable document setting the parameters re pricing and performance for the two concessionaires. There is a Regulatory Office (RO) tasked to regulate the utility, and a residual MWSS office mandated with enforcing the contract. All these instruments have been useless in preventing dramatic price increases and in bringing about improved service in the water utility, especially in Maynilad areas. The Concession Agreement was changed via Amendment Number 1 last October 2001 to accommodate the “requests” of the two companies in the form of drastic jumps in water rates and lower expansion/service targets. The RO, under different leaderships, appears all too eager to justify the demands of the concessionaires. And now, it looks like even the Arroyo administration is going to bow to the wishes of the Lopez group by funding Maynilad’s loan restructuring requirements despite its rotten record.
As in the case of Meralco, there is the implicit threat that the economy will suffer greatly and services will be disrupted with the bankruptcy of a public utility firm such as Maynilad. Even Malacanang has said that it will support Meralco because it runs a public utility. That is the greatest irony of privatization: the government ends up supporting a lousy private company to run a utility whose control it could have retained. E kung popondohan din pala ng gobyerno ang Maynilad, bakit pa isinapribado ang MWSS? E di ganoon din pala!
It is plain to see that Maynilad cannot run the water utility decently. As such, its contract should be terminated by the MWSS Board and its areas returned to MWSS control. Government should not be in the business of salvaging badly-run businesses at the expense of consumers and taxpayers.
MAYNILAD: BULOK SERBISYO, TAAS PRESYO! MAGSARA NA KAYO!
GMA: LUGI NG MAYNILAD, HUWAG SA TAUMBAYAN IPABAYAD!
The water system was privatized with the aim of improving service, expanding connections and maintaining reasonable rates. Metro Manila was divided into 2 sections assigned to two separate concessionaires to encourage competition by checking one’s performance and prices against the other. There was a Concession Agreement—a purportedly inviolable document setting the parameters re pricing and performance for the two concessionaires. There is a Regulatory Office (RO) tasked to regulate the utility, and a residual MWSS office mandated with enforcing the contract. All these instruments have been useless in preventing dramatic price increases and in bringing about improved service in the water utility, especially in Maynilad areas. The Concession Agreement was changed via Amendment Number 1 last October 2001 to accommodate the “requests” of the two companies in the form of drastic jumps in water rates and lower expansion/service targets. The RO, under different leaderships, appears all too eager to justify the demands of the concessionaires. And now, it looks like even the Arroyo administration is going to bow to the wishes of the Lopez group by funding Maynilad’s loan restructuring requirements despite its rotten record.
As in the case of Meralco, there is the implicit threat that the economy will suffer greatly and services will be disrupted with the bankruptcy of a public utility firm such as Maynilad. Even Malacanang has said that it will support Meralco because it runs a public utility. That is the greatest irony of privatization: the government ends up supporting a lousy private company to run a utility whose control it could have retained. E kung popondohan din pala ng gobyerno ang Maynilad, bakit pa isinapribado ang MWSS? E di ganoon din pala!
It is plain to see that Maynilad cannot run the water utility decently. As such, its contract should be terminated by the MWSS Board and its areas returned to MWSS control. Government should not be in the business of salvaging badly-run businesses at the expense of consumers and taxpayers.
MAYNILAD: BULOK SERBISYO, TAAS PRESYO! MAGSARA NA KAYO!
GMA: LUGI NG MAYNILAD, HUWAG SA TAUMBAYAN IPABAYAD!
Sep 16, 2002
PIATCO FIASCO: GRIM EFFECTS OF PRIVATIZATION!
What is happening now at the NAIA (Ninoy Aquino International Airport), the construction of Terminal 3 in particular, is a clear example of the detrimental effects of the privatization program of the government where ownership andmanagement of public services utilities would be transferred to private entities and/or foreign firms.
The Philippine International Air Terminals Corporation (PIATCO), the private firm that will construct and manage Terminal 3, is wholly owned by Fraport AG (Operator of Frankfurt airport in Germany), Security Bank and Trust Co., Equitable Banking Corporation, Chuah Hup Holdings Co., and Philippine Airport Ground services (PAGS)--owned by a group of Filipino-Chinese businessmen who have succeeded in cornering a number of lucrative contracts at the NAIA complex ranging from cargo handling, aircraft maintenance to passenger service.
To privatize NAIA, the government has circumvented and rendered inutile the Philippine constitution, fostered graft and corruption, and will force 10,000 NAIA workers out of their jobs. As in the case of other lopsided and onerous contracts that the government had entered into with private entities, (Lopezes and Ayalas for water service and numerous foreign owned Independent Power Producers for electric service), the government would stand to loose more than P1 billion annually as a result of the PIATCO Concession Agreement (PCA) for 25 years.
With majority of the PIATCO shares owned by Fraport and other entities with Chinese origin, the government had virtually violated the Philippine constitution of 60-40% Filipino-foreign equity ownership. As onerous as it could be, the PIATCO, this early, is already violating the contract when it begun constructing a cargo terminal at the NAIA 3 instead of the stipulated 2.7-km access road to NAIA 2 which, has already an existing cargo terminal. Obviously, PIATCO wants to monopolize and corner the income of the airport, which earned P4.685 billion last year.
As in other sweet deal contracts with private entities corruption would always be a significant part in the processing and facilitation of the transaction. For one, PIATCO entered into a $2.3 million consultancy contract to a certain Mr. Leongson which PIATCO could not defend during a recent Senate hearing on the issue. Thus, it would not be suprising if the project cost ballooned from $350 million in 1997 to US$500 million as of today owing to the reported overcharging and cost-over runs.
However, the most ravaging effects would be on the 10,000 workers now working at the NAIA Terminals 1 and 2. Section 3.02(b) of the PCA stipulates that PIATCO’s terminal 3 shall “exclusively operate” the passenger terminal thus, affecting passenger services of Terminals 1 and 2 leading to the grave displacement of its workers. Worse, Section 3.01(e) of the agreement stipulates the “no carry over clause” which, simply means that PIATCO would not recognize, among others, the existing employees contracts of the NAIA 1 and 2, thus, automatically making the employees jobless once PIATCO begins operations come November 2002.
The PIATCO controversy is a clear manifestation of the bankruptcy and inutility of the privatization program of the government. It did not learn its lesson on the problems brought about by the privatization of water facilities and power industry. It is quite ironic that even if NAIA is a lucrative service enterprise the government would still want to privatize it, ostensibly to relinquish its responsibility and mandate to serve and protect the interest of the people. The government would not mind if it would loose billions of pesos in revenues and witness 10,000 workers die of extreme hunger with their families as long as big foreign and private capitalists are pleased and contented with a very caring and all embracing Philippine government.
The labor groups call on the Arroyo government to rescind the contract and abandon its privatization thrust on one of the most profitable public service facility and secure workers jobs instead of displacing them.
SAMAHANG MANGGAGAWA SA PALIPARAN NG PILIPINAS · CONFEDERATION OF INDEPENDENT UNIONS in the public sector · Alliance of Progressive Labor
The Philippine International Air Terminals Corporation (PIATCO), the private firm that will construct and manage Terminal 3, is wholly owned by Fraport AG (Operator of Frankfurt airport in Germany), Security Bank and Trust Co., Equitable Banking Corporation, Chuah Hup Holdings Co., and Philippine Airport Ground services (PAGS)--owned by a group of Filipino-Chinese businessmen who have succeeded in cornering a number of lucrative contracts at the NAIA complex ranging from cargo handling, aircraft maintenance to passenger service.
To privatize NAIA, the government has circumvented and rendered inutile the Philippine constitution, fostered graft and corruption, and will force 10,000 NAIA workers out of their jobs. As in the case of other lopsided and onerous contracts that the government had entered into with private entities, (Lopezes and Ayalas for water service and numerous foreign owned Independent Power Producers for electric service), the government would stand to loose more than P1 billion annually as a result of the PIATCO Concession Agreement (PCA) for 25 years.
With majority of the PIATCO shares owned by Fraport and other entities with Chinese origin, the government had virtually violated the Philippine constitution of 60-40% Filipino-foreign equity ownership. As onerous as it could be, the PIATCO, this early, is already violating the contract when it begun constructing a cargo terminal at the NAIA 3 instead of the stipulated 2.7-km access road to NAIA 2 which, has already an existing cargo terminal. Obviously, PIATCO wants to monopolize and corner the income of the airport, which earned P4.685 billion last year.
As in other sweet deal contracts with private entities corruption would always be a significant part in the processing and facilitation of the transaction. For one, PIATCO entered into a $2.3 million consultancy contract to a certain Mr. Leongson which PIATCO could not defend during a recent Senate hearing on the issue. Thus, it would not be suprising if the project cost ballooned from $350 million in 1997 to US$500 million as of today owing to the reported overcharging and cost-over runs.
However, the most ravaging effects would be on the 10,000 workers now working at the NAIA Terminals 1 and 2. Section 3.02(b) of the PCA stipulates that PIATCO’s terminal 3 shall “exclusively operate” the passenger terminal thus, affecting passenger services of Terminals 1 and 2 leading to the grave displacement of its workers. Worse, Section 3.01(e) of the agreement stipulates the “no carry over clause” which, simply means that PIATCO would not recognize, among others, the existing employees contracts of the NAIA 1 and 2, thus, automatically making the employees jobless once PIATCO begins operations come November 2002.
The PIATCO controversy is a clear manifestation of the bankruptcy and inutility of the privatization program of the government. It did not learn its lesson on the problems brought about by the privatization of water facilities and power industry. It is quite ironic that even if NAIA is a lucrative service enterprise the government would still want to privatize it, ostensibly to relinquish its responsibility and mandate to serve and protect the interest of the people. The government would not mind if it would loose billions of pesos in revenues and witness 10,000 workers die of extreme hunger with their families as long as big foreign and private capitalists are pleased and contented with a very caring and all embracing Philippine government.
The labor groups call on the Arroyo government to rescind the contract and abandon its privatization thrust on one of the most profitable public service facility and secure workers jobs instead of displacing them.
SAMAHANG MANGGAGAWA SA PALIPARAN NG PILIPINAS · CONFEDERATION OF INDEPENDENT UNIONS in the public sector · Alliance of Progressive Labor
May 29, 2002
Suspension is not Enough, Abolish PPAs!
Today, workers belonging to the Alliance of Progressive Labor (APL) picketed the MERALCO Office to protest the private utility company’s continued collection of PPA payments to cover its own obligations to Independent Power Producers (IPPs) and to reiterate its call for the abolition of the Purchased Power Adjustments (PPA).
The picketers continued to encourage MERALCO customers to have their electricity bills stamped with “under protest” markings.
The suspension of PPA payments slapped by the government to quell the snowballing protest against onerous IPP contracts covers only those that are contracted by the National Power Corporation (NAPOCOR).
While the suspension is a welcome move, it is simply not enough. After all, MERALCO gets half of its power directly from its own IPPs, including those owned by the Lopezes themselves.
This means that the promised 80-centavo reduction in PPA payments would not be realized so long as MERALCO is allowed to collect PPA to cover its own IPP contracts, some of which are believed to be as onerous as NAPOCOR’s IPP contracts.
The APL also criticized current legislative measures calling for government to absorb portions of the PPA as unacceptable.
“Congress is ignoring the crux of the problem. We don’t want to pay for power that we don’t use, whether it is collected through PPAs or whether it is through taxes! The only solution acceptable for workers is one that is not premised on meeting the obligations of NAPOCOR and MERALCO to their onerous IPP contracts. All onerous IPP contracts must be rescinded” Josua Mata, APL Secretary General said.
Apr 23, 2002
Workers Calls for Congressional Inquiry into Maynilad’s Abandonment of Obligation
More than 200 hundred workers belonging to the Alliance of Progressive Labor (APL) would march to Congress today to ask for a congressional investigation on Maynilad’s abandonment of its obligation in certain areas of Quezon and Caloocan Cities.
Two years after paying their water connection fees, hundreds of workers from District 1 in Caloocan City and District 2 in Quezon City trooped to the headquarters of Maynilad Water Services last April 19 2002 for a scheduled appointment with Rafael Alunan III, president of the water concessionaire, to demand the delivery of a long-delayed promise of water service connection in their area and to protest water rate increases. But just like the water pipes that were never installed, Mr. Alunan failed to show up.
Instead of meeting with the protesters, Mr. Frankie Arellano, Senior Vice President for Corporate Affairs of Maynilad, announced in a television interview that they have instructed their people to visit the area to “study the possibility of installing water services.”
“So, two years after collecting connection fees, all they intend to do now is to look into the possibility of providing water services,” Josua Mata, APL Secretary General said. “Maynilad has obviously abandoned its obligation to provide efficient water services in its concession area,” he added.
In a statement, APL said that, “privatization of water has miserably failed. It led to a much higher average water tariff and failed to improve water services.”
Hundreds of workers from APL would march to Congress today to file petitions to the Committee on Privatization and Government Corporations, as well as to the Committee on Economic Affairs to investigate Maynilad’s capacity as a water concessionaire. These Congressional bodies are set to start their investigation of the amendment of the concession agreement between the government and water companies today.
Two years after paying their water connection fees, hundreds of workers from District 1 in Caloocan City and District 2 in Quezon City trooped to the headquarters of Maynilad Water Services last April 19 2002 for a scheduled appointment with Rafael Alunan III, president of the water concessionaire, to demand the delivery of a long-delayed promise of water service connection in their area and to protest water rate increases. But just like the water pipes that were never installed, Mr. Alunan failed to show up.
Instead of meeting with the protesters, Mr. Frankie Arellano, Senior Vice President for Corporate Affairs of Maynilad, announced in a television interview that they have instructed their people to visit the area to “study the possibility of installing water services.”
“So, two years after collecting connection fees, all they intend to do now is to look into the possibility of providing water services,” Josua Mata, APL Secretary General said. “Maynilad has obviously abandoned its obligation to provide efficient water services in its concession area,” he added.
In a statement, APL said that, “privatization of water has miserably failed. It led to a much higher average water tariff and failed to improve water services.”
Hundreds of workers from APL would march to Congress today to file petitions to the Committee on Privatization and Government Corporations, as well as to the Committee on Economic Affairs to investigate Maynilad’s capacity as a water concessionaire. These Congressional bodies are set to start their investigation of the amendment of the concession agreement between the government and water companies today.
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