Written by IBON Media  

Thursday, 12 July 2007

The Water for the People Network-Philippines, a coalition of water advocacy organizations, held a nationwide consultation on water services among its member-organizations last July 12 at the IBON Center.

IBON executive editor Rosario Bella Guzman, in a talk about the national water situation, warned that privatization of water services would increasingly deny poor Filipinos access to affordable water supplies.

Guzman pointed out that investment in water infrastructure projects in the Philippines with private sector participation reached $5.9 billion from 1995 to 2002, the largest in the world. Private investment in the water sector through the build-operate-transfer scheme hit $8 billion. Most significantly, government privatized water services in the National Capital Region, turning it over to two private-sector concessionaires to operate.

International multilateral development organizations also encouraged privatization, Guzman said. She pointed out that the World Bank is funding a 12 year $283 million water privatization program that aims to attract private capital in one thousand towns and cities.

As a result, water rates in Metro Manila, where services are operated by private companies Manila Water and Maynilad, increased by between 345% and 391% from 1997 to 2006. The town of Magdalena in Laguna province, which availed of a P25.7 million loan from the World Bank for privatization of its water services, saw its rates increase by 155% while local health officials declared the water coming from its new system as unfit for human consumption.

Among the speakers for the consultation was Representative Satur Ocampo of Bayan Muna party-list, who shared the group’s legislative initiatives on water. The talks were followed by a workshop in which participants shared their experiences with access to clean and affordable water and privatization of water services.

The consultation gathered some 70 participants from over 30 organizations to share their views, opinions and ideas regarding the present situation and prospects regarding people's access to affordable water and government's privatization of water services. (end)