Water concession review pushed

MANILA, Philippines — Senators and House representatives voiced bicameral support for President Rodrigo Duterte’s plan to go after the country’s two major water firms for taking advantage of “onerous” provisions in their concessions from the government.

“After hearing his explanation (on Tuesday) night on how we are being taken for a ride by these (water) concessionaires, I told him I’m supporting him 100 percent on the issue,” Senate President Vicente Sotto III said in a Viber message.

Human right to water

Sen. Imee Marcos also agreed with the President’s position, arguing that access to potable water was “universally recognized as a human right, not merely a commodity.”

“I support (the President’s) desire to assail these onerous contracts that deprived Filipinos … their right to (clean) water as well as (the government’s right to) impose liabilities … when (their) service and supply fail,” she said.

Senate President Pro Tempore Ralph Recto said senators like him had nothing to do with crafting concessionaire agreements with private firms.

Senatorial assistance?

Recto issued the remarks after Duterte claimed Senate Minority Leader Franklin Drilon might have been involved in crafting the alleged onerous contracts awarded to Maynilad Water Services Inc. and Manila Water Co. Inc. by the Ramos administration in 1997.

In the House of Representatives, even opposition lawmakers expressed rare praise of the President.

Buhay Rep. Lito Atienza, in a privilege speech, said he salutes the President “with both hands” in calling out Maynilad and Manila Water for “shortchanging” consumers.

“Again, [Duterte] has proven that he has the political will to stand up to these oligarchs and free the Filipino people from their clutches,” he said.

Atienza challenged Speaker Alan Peter Cayetano and the members of Congress to follow the President’s lead in calling for a review of the concession agreements.

“It is only now that we have a President who is not afraid to speak out against these corporate giants in behalf of the Filipino people,” Atienza added.

Questioned premises

Citing the firms’ disclosures at the Philippine Stock  Exchange (PSE), the Buhay lawmaker disputed concessionaires’ claims that they have been losing money due to the refusal of Metropolitan Waterworks and Sewerage System (MWSS) to approve water rate hikes.

The Singapore-based Permanent Court of Arbitration recently ordered MWSS to pay Manila Water P7.4 billion for unrealized “guaranteed profit” since 2015.

“According to [PSE] records, [water concessionaires] have been declaring billions of profits and giving out dividends  to their shareholders,” Atienza said, flailing printed sheets of paper.

Review and revoke

He said it was time for Congress to review the concession agreements, and, if necessary, revoke this in light of the Department of Justice findings that several provisions in the agreements were found to be onerous and disadvantageous to the government and to the public.

“Where have you seen a business contract where the concessionaires cannot lose and always end up making hundreds of billions of pesos at the expense of the people? Any business contract can make money for the principal or you can lose money at the same time,” Atienza said.

He expressed disgust that under its agreement, Maynilad and Manila Water can raise water rates even without the government’s permission.

“Isn’t that onerous?” Atienza asked, adding that the President’s complaints against the two water firms  highlights that privatization can be a bane for Filipinos.

In a statement, ACT Teachers Rep. France Castro backed the call of the President to investigate the water supply agreements, which, she said, has caused misery of millions of their consumers.

“If the President is really serious about his statements, [the review of the agreements] should start now, and should not end with some heads rolling,” she said.