Top officials of the Manila Water Company, led by its president Antonio Aquino, held a dialogue last 27 January with leaders of the Water for the People Network (WPN) but failed to impress the latter with their performance report.

“If their agenda in seeking a dialogue with us is to convince us that water privatization is working for the people then they have failed to achieve that,” said Renato Reyes, secretary general of the Bagong Alyansang Makabayan (Bayan). Bayan is a member of the WPN Steering Committee. “We appreciate the efforts of Manila Water to reach out and open venues for engagement with the people. But there were many crucial issues they (the water firm’s officials) failed to answer, foremost of which were the questions on reasonable water rates and efficient service,” Reyes added.

Since taking over in August 1997, Manila Water has increased its all-in tariff (basic rate plus other charges) by more than 390%, the latest of which was the P1.09 per cubic meter hike it implemented this month. From P4.02 per cubic meter eight years ago, the company now charges P19.72. “Yet our estimates show that Manila Water only serves 57%-68% of the 5.3 million people in its service area,” Reyes explained.

Manila Water, the east zone concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS) sought a meeting with the WPN early this month to brief the group of its service performance and future projects. “The experience of Manila Water shows that there is no contradiction between the provision of efficient water service and business. In fact, we have a special program for the urban poor that have already benefited 85,000 people in our service area,” maintained Aquino during the dialogue.

But according to Reyes, Manila Water did not say that their current performance was based on drastically reduced targets from their original commitments. “While Mr. Aquino claims that their NRW (non-revenue water or water losses due to leaks and pilferage) is only 35% as of 2005, their original commitment was to reduce it to 31% by 1998. The 24-hour water supply availability that they achieved last year was five years behind the original target,” noted Reyes. He added that for the consumers, a great majority of which are poor, the major concern is still affordability of water services, which has become impossible under MWSS privatization.

Incidentally, Aquino admitted that water rates are surely to further shoot up as Manila Water expands its operation and due to the pending increase in the value added tax (VAT). “It’s all part of business,” Aquino said. Reyes, meanwhile, said that the WPN remains committed to its advocacy of water for the people through people’s control. “There is no other way that the people’s inherent entitlement to water can be assured,” the Bayan leader said.