Workers press water rate hike suspension

One of the country’s biggest labor unions warned Malacañang yesterday workers will take to the streets to demand a salary increase if Metro Manila’s two water concessionaires are not stopped from raising their rates.

The moderate Trade Union Congress of the Phi-lippines (TUCP) also asked the Senate to investigate if the Metropolitan Waterworks and Sewerage System (MWSS) had committed any wrong in giving out water concessions to Manila Water Co. (MWC) and Maynilad Water Services Inc. (MWSI).

In a statement, the TUCP said MWC and MWSI must explain why they are collecting extra charges from consumers to cover their foreign exchange losses.

"The administration should exhaust all its powers to prevent water firms from implementing increases, otherwise we will have no choice but to seek corresponding increases in wages," read part of the TUCP statement.

"As it is, workers are reeling from the already sky-high prices of commodities. Any additional expenses on utilities, say water or power, will be the last thing the workers need."

Meanwhile, the MWSS blamed yesterday "stakeholders" in Laguna de Bay for its failure to set up a water treatment plant and supply water to southern Metro Manila.

Engineer Joe Dimatulac, manager of the MWSS project, said residents, businessmen, and fishermen in the area have successfully blocked construction of the treatment plant through various environmental issues.

"There are many requirements we have to satisfy," he said "Until all these are satisfied we would not be able to build anything there. "

Dimatulac said that under the MWSS project, salt water would be brought into Laguna de Bay through a canal from the sea to mix with fresh water at 250 parts per million.

"The fishermen want more salinity in the water to make the lake clearer as this would make the dirt fall under," he said. "The fishermen would want nothing less than 1,000 parts per million. But that would be too salty for our treatment plant"

Dimatulac said the Department of Environment and Natural Resources is requiring an environmental plan before the project could be issued an environmental clearance certificate.

"The environmental plan includes making sure the fishermen are not displaced and the water level maintained," he said.

Dimatulac said MWSS will design a dike that would divide water in Laguna de Bay into less salty for treatment and salty for the use of fishermen.

"All these however, are still under planning," he said. "The MWSS hopes to finally start the bidding by next year under the build-operate-transfer scheme."

Meanwhile, Sen. Rodolfo Biazon said yesterday the government has entered into a P137-billion onerous contract for the supply of irrigation water to Central Luzon and energy for the Luzon grid of the National Power Corp. (Napocor).

Biazon said the National Irrigation Authority and Napocor have started paying P160 million monthly to California Energy Casecnan Water and Energy Co. Inc. despite the consortium’s failure to meet its obligations.

"CE Casecnan also failed to deliver 150 megawatts to the Luzon grid as stipulated in the contract," he said. "Despite the surplus energy, we already started paying for the power that we have yet to avail."

Biazon said the consortium failed to irrigate 85,000 hectares of farmlands in Central Luzon as required under the contract.

"Why should we pay P137 billion for nothing?" he said.

The consortium is comprised of CE International Ltd., La Prairie Groups Contractors International Ltd. and San Lorenzo Ruiz Builders and Developers Group, he added.

On the other hand, Minority Leader Carlos Padilla (LDP, Nueva Vizcaya) said yesterday MWSI is making consumers pay a $100 million foreign loan incurred in 2000 through increases in water rates that could reach as much as 400 percent.

MWSI is billing consumers two foreign currency rate adjustments known as Foreign Currency Differential Adjustment (FCDA) and Currency Exchange Rate Adjustment (CERA), he added.

Padilla said customers in old service areas should not be made to share the cost of expansion as they are not benefiting from it.

"It is the new customers who should pay for the service that was not previously available to them," he said.

MWSI officials told the House government enterprises committee chaired by Rep. Francis Nepomuceno (NPC, Pampanga) that the $100 million was used for expanding their service. – With reports from Jose Aravilla, Aurea Calica, Jess Diaz