Nation

Protest welcomes public water rate hike consultation

Dennis Carcamo - The Philippine Star

June 11, 2013 | 1:30pm

MANILA, Philippines - Members of the militant group Bagong Alyansang Makabayan (Bayan) on Tuesday stormed the first public consultation on water rates increases by water concessionaire Maynilad at the Philippine Trade Training Center (PTTC) in Pasay City.

During the lightning rally at todayâ€™s public consultation, protesters bathed outside the PTTC building as a form of their symbolic protest against the looming increase of water rates.

They also hurled water bombs and displayed a mascot of President Benigno Aquino III holding mock seals of Maynilad and Manila Waters showing how the government benefits from water price adjustments.

Starting today until June 14, Maynilad and another water concessionaire Manila Waters will hold a series of consultations on different venues regarding their proposals to increase water rates this year.

Data from the Metropolitan Waterworks and Sewerage System-Regulatory Office showed that Maynilad proposed an additional P8.58/m3 (cubic meter) while Manila Waters suggested an additional P5.83/m3 on their basic charges.

Meanwhile, the Water for the People Network, a non-government organization, said that an estimated P11.41/m3 will be the total water rate increase that will be charged by Maynilad if other charges will be added and P7.81/m3 for Manila Waters customers.

"Since 1997 when the water sector has been privatized by former President Ramos, the cost of water consistently increased from P4.96/m3 to P33.97/m3 for Maynilad and P2.32/m3 to P28.29/m3 for Manila Waters.

"Clearly, this means that privatization only burdens our people and that it will never result to lower costs of our basic utilities and services," Bayan-NCR deputy secretary general Paulo Quiza said.

He said the sudden increase in the profit of the two water concessionaire only proves that any schemes under the guise of privatization will only benefit big local and foreign businesses."

"By making our water sector as a profitable business, our government has clearly neglected its responsibility to give us our right to clean water," he added.

Quiza said that they are not expecting for the Aquino government to block the proposals of the two water concessionaires because the Palace is directly benefiting from the value added tax collection from the water utility.

As of the first quarter of 2013, approximately P10.98 million VAT has been collected from the water sector on a daily basis.

Quiza claimed that the government is hell-bent on collecting more taxes on water for them to subsidize more on foreign debt servicing.

Aside from the direct benefit of the Aquino government from VAT on water, he also said that they have no hopes for the Palace to act on water rate increase proposals because former heads of Maynilad and Manila Waters are right inside President's Cabinet.

He is referring Secretary Rogelio Singson, a former president and CEO of Maynilad and Secretary to the Cabinet Jose Rene Almendras, a ex-president of Manila Waters.

Bayan-NCR will stage more protest-actions during the series of consultations leading to the 4th State of the Nation Address of the President on July 22.