MCWD union against proposed $800M loan

CEBU, Philippines - The Metro Cebu Water District Employees Union (MEU), Alliance of Government Workers in the Water Sector (AGWWAS), and the Public Services International (PSI) expressed their opposition to the proposed loan that Metro Cebu Water District may obtain from the Asian Development Bank.

MEU said that they are worried on how to eventually pay it off.

According to the union, the loan that the company had proposed cost $800 million or PhP17.2 billion in Philippine money.

They also added that MCWD was assisted by the ADB through the help of the French and Austrian governments who heeded the call to support the improvement of the metro’s water system.

The budget will be used to transform their respective facilities into a much productive and economical system within the next 11 years.

Felicisimo Salcedo, president of MEU, said that they are not against to any improvement and rehabilitation but they are worried on how the company will pay the loan.

“Unsaon man ni pagbayad ang P17.2 billion?” Salcedo said.

Victor Chiong, chairman of AGWWAS, said that one way that they can pay the loan is to reduce the workforce and the “backdoor private decision”. This means that MCWD will become a private company if they cannot pay the loan they have filed.

The union allied with the other government sectors to restrain any projects that will be using the loaned money.

The union said while they do fear losing their jobs they are more concerned for the consumers.

“Tinuod na mahadlok sad mi tangtangan ug trabaho pero ang pinaka-main reason kay ang tariff increase sa mga water consumers.” Salcedo added.

The union said that their total asset in a year is only P3 billion not including the operational expenses which may not be enough to pay for the loan from the ADB.

The union is planning to bring the issue to the Senate and to the President. They will also to raise the issue during the World Water Forum.

They also had to make a dialogue with Cebu Archbishop Jose Palma and the Mayor Michael Rama.

The union already addressed the management of the company about their sentiments.

MCWD General Manager Armando Paredes said it is still premature to talk about the loan when the study is not even done yet.

Paredes explained that while the ADB is conducting a study, with funding from the French government, on urban water supply and sanitation project for both MCWD and the Davao City Water District.

“Common sense dictates that you do not take out a loan that you can not pay. Any lender will also exercise due diligence in granting a loan to any entity,” Paredes said.

The MEU projected that the water rates will increase from between P7 to P11 to between P19 to P22.

Paredes was surprised on how they came up with the figures because the Water District does not have an immediate project that will result in an increase in water rates.

Paredes said he will be meeting with the MEU officers soon to answer whatever questions they have.

He is also surprised that the MEU has to call for a press conference to bring up the issue when the management of MCWD is always open to entertain them and clarify any issues with them. —with a statement from MCWD/BRP (FREEMAN)