News release
1 February 2011

The Water for the People Network (WPN) condemned the rate hikes implemented by private water concessionaires in Metro Manila, calling the increases unjustified and insensitive to the plight of ordinary consumers.

Starting this month, Manila Water Co. will charge P1.92 per cubic meter (cu. m) more on residential customers using at least 30 cu. m per month. Meanwhile, Maynilad Water Services Inc. will impose an additional P2.30 per cu. m for similar customers. The new rates mean that households using at least 30 cu. m will see their monthly water bill increase by at least P57.60 to P69 starting in February.

According to the WPN, consumers were not even informed beforehand, much less consulted, about the water rate hikes approved by the Metropolitan Waterworks and Sewerage System – Regulatory Office (MWSS-RO).

The group argued that the latest rate hike is unjustified because the private water concessionaires have yet to account for the questioned P1 billion they collected from consumers for unimplemented water and sewerage improvement projects.

It added that the increase is insensitive and blamed the MWSS-RO for not considering that the prices of other goods and services such as food, petroleum products, toll, transportation fares, etc have been going up since late last year.

The WPN said that while the adjustments form part of staggered increases being implemented by Manila Water and Maynilad for rate hikes approved in 2008, regulators should still have factored in the spate of price increases.

At the minimum, the WPN said, the MWSS-RO could have asked the companies to suspend the rate hike to mitigate the overall rise in prices. Water is such a fundamental daily need of the people and there must be effective government intervention in ensuring that it remains available and accessible, said the WPN. Unfortunately, the privatization of the MWSS has severely undermined such role of government.

The group noted that prior to the recent adjustments rates being charged by Manila Water have already grown almost eight-fold from its initial rates in 1997 when MWSS was privatized. Maynilad rates, on the other hand, have increased five-fold during the same period.

But aside from jacking up the rates and marginalizing the poor, Manila Water and Maynilad have failed to ensure universal access and 24/7 availability in their service areas. Less than 60 percent of 790,000 households in Maynilad’s service area have 24-hour water service while only 74 percent receive water at 7-pound per square inch (PSI) or stronger pressure. More than half (51 percent) of water allocated to Maynilad continues to get wasted because of leaks and pilferage.

Meanwhile, Manila Water, claims 99 percent water supply coverage in its service area but will not say how big the portion is with individual and direct household connection and those serviced by private water suppliers or “middlemen”. These areas served by a third party private contractor are often poor communities and most vulnerable to water supply disruption. #

October 15, 2010

Press statement

Experience of countries around the world that have implemented water privatization shows that public-private partnership (PPP) will not address the water crisis. Contrary to the claim of the Asian Development Bank (ADB), allowing profit-oriented private corporations to take over the management and distribution of water resources will even worsen the problem.

Advocacy group Water for the People Network (WPN) issued the statement as the ADB wraps up today its five-day conference “Water crisis and choices” in its Manila headquarters.

The ADB warned during the conference that Asia will face a severe water crisis by 2030, with the shortfall in water supply reaching as much as 40 percent. To address the situation, the multilateral financial institution is drawing up a new framework for water operations that calls for efficiency improvement and greater PPPs.

It is ironic that in justifying its renewed push for water privatization, the ADB cited the Philippines as the “best example so far in the region” in terms of PPP initiatives in the water sector. The ADB was referring to the privatization of the Metropolitan Waterworks and Sewerage System (MWSS) in 1997 that transferred to private concessionaires Manila Water and Maynilad the task of delivering water to almost 14 million people in Metro Manila and nearby areas.

The WPN reminded the ADB that just a few months ago, almost half of Metro Manila suffered from water shortage and thousands of residents had to endure long queues and water rationing. While the authorities blamed the low water level at Angat Dam, which supplies 97 percent of domestic water needs of the metropolis, the impact would not have been as bad if not for structural issues related to the privatization of the MWSS almost 13 years ago.

For instance, even prior to the water shortage, only 60 percent of 760,000 households in the service area of Maynilad have 24-hour water supply and more than half of its water allocation are wasted due to leaking pipes and pilferage. Manila Water, on the other hand, claims 99-percent coverage but this includes those serviced by a third party private contractor often in the poor communities. These private companies promised universal access to water by 2001 and a 24/7 water supply.

The advocacy group warned that promoting more PPPs in the water sector will aggravate the deteriorating condition of the world’s water supply. It added that instead of “water for all” as trumpeted by the ADB, dwindling water resources will be increasingly monopolized by the rich at the expense of the poor who could not afford escalating user fees common in PPP projects.

Reiterating its call to stop the privatization and corporate takeover of water services and resources, the WPN said that the public sector is still in the better position to deal with the worsening water supply problem facing the world because of its inherent mandate to deliver public goods and services such as water. #

STOP ANGAT DAM PRIVATIZATION

Press release / 28 April 2010

Advocacy group Water for the People Network (WPN) today challenged presidential candidates to prove that they are not beholden to big business interests and issue a categorical statement that they will not allow the privatization of the Angat Dam and undermine people’s access to water.

The group issued the statement as the deadline for the submission of bids for the 246-megawatt (MW) Angat Hydroelectric Power Plant (HEPP) ends today.

The WPN noted that among the interested buyers of the Angat HEPP are some of the most politically influential business groups in the country and perceived backers of some presidentiables including Danding Cojuangco’s San Miguel Corp., the Lopez family’s First Gen Corp., the Ayala Group, Manny Pangilinan’s Metro Pacific Corp., Aboitiz Power Corp., and the Consunjis’s DMCI Power Corp.

“We need an assurance, especially from the leading presidential contenders, that they will protect the human right to water and not the private business interests wanting to control Angat Dam’s hydropower facilities. Whoever controls the hydropower facilities controls the flow and allocation of water from the dam,” the WPN said.

According to the WPN, the issue of people’s access to water for basic uses will be a recurring problem that the next administration will face. The group said that droughts, such as the current El Niño, will be more intense due to climate change and will further limit available freshwater supply for domestic use and irrigation.

The group added that the Power Sector Assets and Liabilities Management Corp. (PSALM), the body tasked to privatize Angat Dam, should not rush its privatization and at least wait until a new president takes over.

“Aside from its serious impact on people’s access to water, the privatization will also be conducted in the thick of the elections. It is for the interest of everyone that the PSALM exercises due prudence and allow the next administration to decide on the fate of Angat Dam,” said the group.

In an earlier statement, the group said that the privatization of the Angat HEPP will undermine the access to water for basic domestic use of some 14 million consumers in Metro Manila and several towns in the provinces of Rizal and Cavite. It will also threaten the use of water from Angat Dam for the irrigation needs of some 28,000 farmers in the provinces of Bulacan and Pampanga.

As an alternative, the WPN proposes that government’s water agencies take the lead in managing the facilities of the Angat Dam with sufficient mechanisms that will allow multi-stakeholder participation (including consumers, farmers, non-government organizations, and concerned local government units) in the management of the dam. (end)

Ensure water for the people

Press release

April 8, 2010

Advocacy group Water for the People Network (WPN) today said that private water utilities operating in Metro Manila as well as government regulators must come out with a detailed plan on how they will ensure that ordinary households will not be further marginalized by well-off customers and commercial establishments in terms of access to water supply.

WPN activists protest a mall's wasteful use of water amid El Nino and water supply shortage in Metro Manila

The group stressed that given the tightening water supply in Metro Manila, it is crucial for authorities to strictly monitor and regulate the wasteful use of water by golf courses, malls, hotels, private parks, car wash shops, and other commercial establishments.

It noted that an 18-hole golf course, for instance, consumes an average of 2.3 million liters of water per day, according to the United Nations (UN), causing an enormous impact on water withdrawals.  The UN also suggests that a person needs between 20 to 50 liters of water daily for his/her basic needs. This means that water used for an 18-hole golf course can meet the basic and more important water needs of around 46,000 to as high as 115,000 people.

The WPN made the call in light of the statement Wednesday by Maynilad Water Services Inc. that more than half a million of its customers will face water supply disruption starting this month because of the declining water level in the Angat Dam. Water level in the said dam, which supplies 97 percent of the water needs of Metro Manila, is expected to fall to 176 meters, reportedly the lowest in six years, due to the El Niño.

Maynilad has been serving the west zone of Metro Manila since the Metropolitan Waterworks and Sewerage System (MWSS) was privatized in 1997. Manila Water Co., on the other hand, serves the east zone. Because of the prolonged drought, Maynilad said that about 560,000 people in 156 barangays will experience lower water pressure or “shortened water supply schedules”.

The WPN emphasized as well that Maynilad and Manila Water must be held accountable for failing to provide, after more than a decade of privatization, reliable and universal access to water for people in Metro Manila and several towns in Rizal and Cavite provinces, which are also included in the MWSS service areas.

At present, many areas in Metro Manila and parts of Rizal and Cavite, in particular the poor communities still do not have access to the privatized water distribution system of the MWSS. The WPN said that even without an El Niño, more than 3.2 million people in Metro Manila who are supposed to be served by the private water concessionaires do not have access to water. Water losses, mostly from leaking pipes that the private water concessionaires have long neglected, reach more than 1.5 million liters per day.

As a long-term measure, the WPN said government must reverse the privatization of the MWSS and reiterated its earlier demand to stop the planned privatization of the Angat Dam and instead turn over its control and management to the public water sector. (End)

PSALM told to stop bidding

Press release

March 23, 2010

CHR Director Karen Dumpit explains the concept of "human right to water" during a roundtable discussion on Angat Dam privatization with WPN members last March 23

Advocacy group Water for the People Network (WPN) today said that the water sector, instead of private power companies, should take the lead in managing the facilities of the Angat Dam. The group issued the statement during a roundtable discussion it organized on the the planned privatization of the Angat Dam, which is set to be bid out next month.

Also speaking at the said forum entitled “Angat Dam privatization: Defending water for the people” held at the University of the Philippines (UP) in Quezon City was the Commission on Human Rights’ (CHR) Karen S. Dumpit. Dumpit, who serves as Director of the right body’s Government Linkages Office (GOVLINK), talked about the implications of the Angat Dam privatization on the human right to water.

Also in attendance during the roundtable were representatives from Manila Water, affected farmers from Bulacan and consumers in Metro Manila, as well as water advocates from the academe, environmental groups, and non-government organizations (NGOs).

“The question that we should ask is what will be the value-added of Angat dam’s privatization? Will it make water more accessible? Will the benefits redound to the communities?” Director Dumpit asked during her presentation.

In an earlier advisory on Angat Dam privatization, CHR commissioners led by Chairperson Leila de Lima maintained that the “right to water is more fundamental and primary over the need for power” and advised government to “always consider paramount the most basic resources necessary and indispensable for human survival, which include water”.

The privatization of the Angat Dam forms part of the implementation of the Electric Power Industry Reform Act (Epira) of 2001. At present, the dam is being managed by the National Power Corp. (Napocor). The Power Sector Assets and Liabilities Management Corp. (PSALM), which under Epira was formed to dispose the assets of Napocor, has scheduled the bidding of Angat’s hydropower facilities on April 28. The group said that the PSALM must stop the bidding.

Water supply for irrigation and domestic use has been declining in recent months due to the El Niño phenomenon and has been particularly harsh on the vulnerable sectors, a situation which small farmers and poor consumers fear will worsen if the privatization of Angat Dam pushes through.

The WPN said that whoever controls the hydropower facilities of the Angat Dam also effectively controls the dam’s water allocation. Earlier, the group raised concern that the access to water for basic domestic use of some 14 million people in Metro Manila and parts of Cavite and Rizal, as well as the use of Angat Dam for the irrigation needs of around 28,000 farmers in Bulacan and Pampanga may be undermined by the planned privatization.

Since the mandated priorities of Angat Dam are the consumers and farmers and not hydropower generation, it is only logical that the Metropolitan Waterworks and Sewerage System (MWSS) and National Irrigation Administration (NIA), together with the National Water Resources Board (NWRB) take the lead in the dam’s management, the WPN said. It added that the Napocor could act as support agency only.

The WPN said it does not demand that Angat Dam totally discontinue its hydropower role but strict public control must be in place to ensure that the dam’s power component does not marginalize the domestic and irrigation purposes of the dam. Placing Angat Dam in the hands of private power companies will certainly undermine domestic water use and irrigation, the group said. (end)