Maynilad reduces proposed water rate hike

MANILA, Philippines—Maynilad Water Service Inc. has slashed its proposed hike on basic charges to P8.58 per cubic meter from the initial P10.30, but consumer groups decried this as evidence that rate adjustments lack transparency.

In a public consultation held Tuesday in Pasay City, data from the Metropolitan Waterworks and Sewerage System-Regulatory Office also showed that the proposal of Manila Water Service Inc. remains at P5.83.

Paulo Quiza, deputy secretary general of the Bagong Alyansang Makabayan-National Capital Region said that based on the proposed numbers, actual rate hikes including other charges would reach an estimated P11.41 per cubic meter for Maynilad and P7.81 for Manila Water.

Bayan-NCR is a member of the Water for the People Network (WPN), which opposes rate hikes, saying these are unjustified. Its members held a rally outside the Philippine Trade Training Center where the consultation was held.

“Since 1997 when the water sector was privatized, the cost of water consistently has increased from P4.96 to P33.97 for Maynilad and from P2.32 to P28.29 for Manila Water,” Quiza said, citing WPN data.

“Clearly, this means that privatization only burdens our people and that it will never result in lower costs of our basic utilities and services,” he added.

Maynilad is scheduled to hold a second consultation on Thursday as Manila Water holds its first, both in Quezon City. The latter has set its second consultation on Friday in Antipolo City.

In a phone interview, Bayan secretary general Renato M. Reyes Jr. cited a possible conflict of interest between Public Works Secretary Rogelio Singson and his former employer, Maynilad.

“Singson raised eyebrows in 2010 when he sought to assume the chairmanship of the board of the MWSS, being the ex-officio chairman, just after his stint at the water concessionaire,” Reyes said. “Meanwhile, Presidential Management Staff head Rene Almendras used to be president of Manila Water.”

“It appears that the two concessionaires are well-connected when it comes to the Aquino administration,” Reyes added. This makes a hefty rate increase all the more possible.”

According to the Ibon Foundation, any rate hike is unjust because the increments are meant for investments planned for the next five years.

“Such a scheme represents abuse of consumers because the planned projects never push through,” Ibon executive director Sonny Africa said in an earlier interview.

Africa said that in the 2003 rate rebasing, the incremental charges took into account projects like the P732-million Wawa Dam, P52-million feasibility study for the Laiban Dam, and the P100-million Laguna Lake water supply project.

He added that in 2008, incremental charges took into account the similarly still-unimplemented P5.4-billion Angat reliability project, P45.3-billion Laiban Dam, and the P4.1-billion earthquake contingency project.

“According to the MWSS-RO (Metropolitan Waterworks and Sewerage System-Regulatory Office), the cost of unimplemented projects may be offset in the succeeding rate rebasing,” he said. “In that case, shouldn’t there be rate cuts instead?”