(03/24/2004) Quezon City, Philippines (Indymedia QC) -- The Water for the People Network, a coalition of consumer activists and organizations, has condemned the bailout agreement between the wealthy Lopez clan and the government. Together with the French water giant Suez, Lopez-owned Benpres is controlling Maynilad, one of the two private concessionaires that are distributing water in Metro Manila since the privatization of the service in 1997.

While the company has raised water rates by 226 percent and both Benpres and Suez have milked the company dry, Maynilad accumulated a debt of P8 billion to the government. Under the current bailout agreement, the government will not collect these unpaid concession fees and assume almost P11 billion in outstanding obligations of the near-bankrupt company in exchange for shares. While this deal obviously favors Benpres and Suez instead of the consumers, the latter will have to bear a new rate increase of 32 percent.