Bayan Muna Chairperson Neri Colmenares criticized the forthcoming water rate hike proposed by Manila Water Company, Inc. and calls for an urgent review of the concession agreement and a halt of privatization, contending that such measures have merely imposed additional burdens on consumers
“Water, as a basic necessity, must be managed by the state. The privatization of water utilities has resulted in exorbitant rates that continuously exploit the Filipino people,” Colmenares stated.
Effective October 1, Manila Water will increase its rate by P0.86 per cubic meter, significantly impacting consumers with an increase of P8.10 for those using 20 cubic meters monthly and P16.54 for 30 cubic meters. Colmenares emphasized that the overall impact of privatization remains detrimental.
“The Foreign Currency Differential Adjustment (FCDA), used as a mechanism to adjust tariffs based on foreign currency fluctuations, has only served to justify these hikes. Consumers are forced to shoulder additional charges, which include a 12% VAT and a 20% environmental charge, on top of the FCDA,” he added.
Colmenares pointed out that since the privatization of the Metropolitan Waterworks and Sewerage System (MWSS) in 1997, consumers have faced a staggering increase in basic tariffs, with Manila Water’s rates soaring by 970% and Maynilad’s by 596% by 2018.
“The privatization model has failed, as evidenced by the numerous water interruptions and the failure of concessionaires to fulfill their obligations. The state must reclaim control to ensure fair and equitable water distribution,” Colmenares asserted.
He also highlighted the plight of MWSS employees post-privatization, noting that nearly half of the workforce was displaced, with many still awaiting their separation benefits.
“The continued privatization of local water districts under the guise of public-private partnerships is alarming. Companies like Metro Pacific, Manila Water, and Prime Water have already taken significant control, and this must be stopped,” Colmenares urged.
In June 2021, Enrique Razon, a prominent figure in the ports industry, assumed the roles of chairman, president, and CEO of Manila Water Co., a publicly listed company. He officially took control of the east zone water concessionaire following his acquisition of a controlling interest from the Ayala Group in 2020.
The family of billionaire Manny Villar owns Prime Water Infrastructure Corporation while businessman Manuel V. Pangilinan owns Maynilad of Metro Pacific.
“Kung ang ordinaryong negosyo ay sinusuong ang pag-akyat baba ng presyo o pag baba ng piso, bakit itong mga water concessionaires sa atin pinapasa ang sinsabi nilang lugi pag bumaba ang piso. Dapat pantay ang trato sa lahat ng negosyo. Anyway, kikita naman sila pag tumaas ang piso, he added.
We were able to take out this FCDA exaction during the time of President Duterte. Why is this being reinstated at the time of Pres. Marcos is he that beholden to the oligarchs?
“In reclaiming the water utilities, we must prioritize ‘Serbisyo di Negosyo’—service over profit—to ensure that water remains a right, not a commodity,” Colmenares concluded.#
