Gov’t urged to ensure liquidity of water districts amid pandemic | Inquirer News

Gov’t urged to ensure liquidity of water districts amid pandemic

/ 01:37 PM May 20, 2020

MANILA, Philippines — Senate President Pro Tempore Ralph Recto on Wednesday sought for the inclusion of community-owned water districts in the economic assistance being packaged by the government.

“Kung walang tubig, paano maghuhugas ng kamay? If water is essential to the anti-pandemic fight, then we must see to it that those who supply it are financially buoyant,” Recto said in a statement.

The senator pointed out that the deferment of the payment of water bills and the decision of water districts themselves to relax collection “have led to cash flow problems for many of them.”

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“Maraming water districts, lalo na ‘yung mga maliliit, ang may liquidity problems. These districts serve small towns and rural areas which water conglomerates find too unprofitable to operate in,” he added.

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Recto also said that unlike Maynilad and Manila Water, the community-owned water districts do not have “a reservoir of resources” to tide them over during the period when bill payments have “likewise been placed under quarantine.”

He said the various economic stimulus packages being “bounced around” for the consideration of Congress should include a provision “distinctly addressing what relief should be given to water districts.”

“Can their loans be refinanced? Ano ang mga posibleng tulong para tuloy-tuloy ang kanilang service expansion?” Recto asked.

Almost 600 water districts in the country combine for 20 million household customers, or one in five water users, according to Recto.

He added that the majority of the water districts only have less than 3,000 connections.

“Although they are required to keep a financial reserve that can meet three months of operations, most of them do not have this cushion,” the senator said, adding that the same problems “hound local governments which run their own water system.”

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“When the local budget is depleted by pandemic expenses, when low water consumption brought about by the closure of business establishments leads to a dip in water revenues, and when collection suffers because of the staggered payment policy, all of these add pressure on the LGU budget,” he said.

“If internet is treated like a vital utility during the lockdown, then all the more should water be. We can survive without broadband, even without electricity—but water, like food, is essential for man’s existence,” he added.

/MUF
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