Two lawmakers propose reforms in water industry

MANILA, Philippines - Two lawmakers are proposing to institute reforms in the water industry to address what they described as the “perplexed and fragmented approach” in water resource and industry management.

Marikina City Rep. Romero Quimbo authored House Bill 5497, which seeks to adopt and institutionalize the Integrated Water Resource Management approach and to reform the water industry.

Quimbo said the scarcity of clean and safe water has become a perennial problem in the country due to the booming population and the lack of organization in the water industry.

He said the disparity of source and demand has led to various issues on health due to the quality of the water.

“With the rapid increase in population and the depletion of clean and safe water in the country, it is imperative that true reform and not mere added regulation be made in our water industry,” Quimbo said.

He said the lack of cohesion in management approach had caused inefficient water related programs and activities.  

“The presence of several government agencies involved in water and sanitation in the Philippines has led to inconsistencies in the implementation of water related policies. Authorities with overlapping functions, limited budget and manpower resources are just part of the picture in this grim scenario,” Quimbo said.

He said the bill renames the National Water Resource Board (NWRB) as Water and Sanitation Regulatory Authority (WSRA), which will strengthen and restore the NWRB as the lead agency in water resource and industry management.

“The bill will consolidate the envisioned powers of the NWRB which were scattered over the years by the formation of several government agencies creating pointless divisions.  The current water scenario theoretically allows the NWRB to check how much water is being appropriated by all entities nationally,” Quimbo said.

Davao City Rep. Karlo Alexei Nograles, a co-author of the measure, said the introduction of regulatory reforms is consistent with the bill’s objective to fashion fundamental, structural and complementary reforms first before even considering the need for another regulator to enter the chaotic picture.

“The fragmented water district model of Presidential Decree 198 has failed to ensure that the water located in our lakes and rivers reaches our faucets.  The past 30 years more than amply evinces such fact.  It only encouraged the monopoly of water services providers by small operators in cahoots with local officials monopolize water services with no incentive to provide quality service,” Nograles said.

He said the bill will eradicate the situation wherein several water service providers compete over the resources in order to bring water to each home, without regard to the depletion of such sources.  He said this will also cut the cost of maintenance of said water service providers since many will share said expenses for maintenance.

“Achieving effective water governance will induce investors to come in and would facilitate the unitary approach in the operation of service providers.  These provisions will eliminate anti-competitive practices and monopolies in the water industry,” Nograles said.

He said the bill will innovate through the creation of a readily accessible, centralized and public database of information regarding the water industry.  This will contain the performance and pricing data of service providers within the water resource zone of each province and across all provinces.

Nograles said this kind of information access will keep the playing field fair and competitive and help the public check whether the provider in their area is over-pricing them.  “If the relative prices of all providers in the country are within reach, the public can easily compare,” he said.

Under the measure to be known as the “Water Sector Reform Act of 2012,” all water providers are now going to be required to meet their respective targets and the public will know whether they do.

The bill provides for a mechanism that authorizes their replacement if water providers fail to meet their targets.  This accessible and integrated information system will be the motor for the creation of an industry with just and reasonable rates, and more importantly, adequate and world-class service.

The bill aims to integrate water and sanitation since health and sanitation concerns inevitably raises the issue of the extraction, use of water and the release of polluted waters that have been used for health and sanitation purposes.

“Mindful of the effects of the Clean Water Act, our proposal seeks to interpose the powers and authorities of the government, as regards the water quality management,” Nograles said.