Imbued with public interest

The inter-agency task force reviewing the proposal of the San Miguel Bulk Water Co. (SMBCI) to undertake the Laiban Dam project in partnership with the Metropolitan Waterworks and Sewerage System (MWSS) by all indications will not be able to finish the review within the year.

It was earlier expected that by November or December this year at the latest, the MWSS board would have been able to decide on whatever recommendation the task force would have given: whether or not MWSS should enter into a joint venture agreement with SMBCI for the Laiban project.

It would take between five or six years for the private sector proponent to finish the Laiban project, which promises to be address the expected shortfall in water supply brought about by problems caused by the current and only source of water for Metro Manila –Angat Dam. Any further delay cannot and should not be tolerated.

The Angat multi-purpose facility will be privatized, no doubt about that. There are indications from government that it will be transferred to private sector hands before the Arroyo administration ends.

The reason for the privatization? They say that it is required in the EPIRA law. But the MWSS, which is asking that Angat’s administration and ownership be transferred to it, is saying that there is no prohibition in the law for the transfer to MWSS.

The problem with Angat ending up in the hands of the private sector is, there is no assurance that the new owners will prioritize domestic water use and irrigation over power generation. The latter provides better income for the owners. But since Angat is the only source of domestic water for Metro Manila, the privatization of Angat is not just a matter of raising revenues for the government. It has become one imbued with public interest.

Sources are saying that the National Water Resources Board (NWRB) together with other stakeholders are currently preparing an agreement that would be binding upon the new owners and would require that domestic use followed by irrigation be given priority over power generation in the utilization of Angat’s water.

That is good. But it appears that this is better said than done. Experts are now saying that whoever will eventually own Angat will have to demand compensation or some form of subsidy for the lost income opportunity for this imposition on the utilization of Angat’s water. This would probably entail MWSS buying water from the private sector owners at a much higher price. Eventually, the consuming public will have to bear the brunt of the higher prices.

There is no point in privatizing Angat before Laiban Dam, or any alternative to Angat, is operational. The idea of transferring Angat to MWSS is not new. As early as the term of former President Ramos, this has already been proposed. But nothing came of it. Maybe it’s about time that we took this thing seriously.

From the readers

“I am the one who had posted the video question that was picked by Gilberto Teodoro in GMA’s Forum : ISANG TANONG. I am sad that only a few if not nobody picks up my point.

“Isang Tanong : Papayag ka ba na sa buong panahon ng iyong panunungkulan, lahat ng iyong ari-arian at mga tinatangkilik maging ng iyong mahal sa buhay ay mananatiling frozen ? ..(some parts of the questions are edited by GMA7)Your financial growth should be proportional to the economic performance of the country. Ano, kakagat ka ba ?

“The question is intended to be catchy. I expect those with high level of thinking can sense the underlying questions from the seemingly unrealistic question. Indeed, it is unfair to just freeze someone’s assets. But why asking such question ?

“By how much is expected for a President to inflate his/her assets while in service? What are the clear-cut prohibitions for any public official to deal with government transactions? Is it ethical for a President to enrich him/herself more than that of what the national economy pegs during his/her term? How do you assure that the wealth and business interests of the President are transparent? How do the business interests of the President influence his/her projects, decisions and projections?

“Mr Gilberto Teodoro is intelligent enough to infer that the question is directed to transparency issue and motivations of a public servant amidst the current national economic performance. But still, the question on disclosure of public servants’ assets and liabilities has been a persistent problem.

“If I answer my own question, I would say: Yes. My assets and business interests(kung meron man) can be frozen and can be even utilized and managed by a commission PROVIDED that the state would guarantee a decent financial return based on the over-all economic performance at the end of my term. In short, I will perform my duty as full time President but you need to pay those missed earnings had I pursued my private life. Isn’t it fair?” - Engr. Renante Nate

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