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Water warriors slam Philippine government’s hesitation to kick out Suez, Benpres
by Water for the People Network
Monday, Aug. 16, 2004 at 3:53 PM
research@ibon.org
Various organizations under the Water for the People Network trooped to the office of the Metropolitan Waterworks and Sewerage System (MWSS) in Balara, Quezon City to denounce government’s indecision to immediately take over the concession of Maynilad Water Services Inc.
Various organizations under the Water for the People Network trooped to the office of the Metropolitan Waterworks and Sewerage System (MWSS) in Balara, Quezon City to denounce government’s indecision to immediately take over the concession of Maynilad Water Services Inc.
“Because of its hesitation, government prolongs the agony of millions of Maynilad customers. Is government simply too pro-Suez and pro-Lopez that it is buying time to forge a more acceptable bailout scheme for Maynilad?” asks Ferdinand Gaite, national president of the Confederation for the Unity, Advancement, and Recognition of Government Employees (Courage) during a protest rally attended by around 300 water advocates. Courage is among the more than 100 organizations under the Water for the People Network.
Maynilad, a consortium of French giant Suez and Benpres (owned by the influential Lopez family), won the west zone concession of Metro Manila when MWSS was privatized in 1997. Manila Water, a consortium of UK’s United Utilities, Japan’s Mitsubishi Corporation, the World Bank’s International Finance Corporation (IFC), and another powerful clan the Ayala family took the east zone.
In 2002, Maynilad declared an early termination of its contract with MWSS after government refused to approve its rates hike petition. A series of backdoor talks and court hearings followed, which culminated in the controversial Amendment No. 2 signed by both parties last March 2004. Public pressure, however, forced the Philippine government to reject the compromise deal, which would burden government with Maynilad’s debts.
The Water for the People Network has been pressuring government to kick out Suez and Benpres; to make them pay for US$180 million in deferred concession fees and for PhP7.5 billion (around US$140 million) in illegal collections from customers; and to take over the west zone concession.
“Seven years of Suez and Benpres is enough. Since they took over, water rates have increased by more than 230 percent while services have deteriorated. They only made the Maynilad concession a milking cow. They blackmailed our government and our people to bear their hunger for profits. We can no longer allow this to go on,” says Gaite. (end)
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