Investing in our future

The Clean Water Act directs the Metropolitan Waterworks and Sewerage System (MWSS) to provide, install, operate, and maintain the necessary adequate waste water treatment facilities in Metro Manila, Rizal, and Cavite where needed at the earliest possible time.

And in a decision handed down in 2011, the Supreme Court in a bid to restore the water quality at Manila Bay to swimming quality ordered the completion of the construction of wastewater treatment facilities in said areas not later than 2037.

West zone concessionaire Maynilad Water Services Inc. (Maynilad ) has prepared a program for the construction of sewage treatment facilities that will cost P132 billion until 2037, of which about P30 billion will be spent this year.

When they entered into water concession agreements with MWSS, Metro Pacific-led Maynilad and Ayala-owned east zone concessionaire Manila Water were acting on the assumption that government will honor its commitment and allow them to recover their multi-billion peso as scheduled.

But recent pronouncements indicate that MWSS does not intend to honor its commitments under the water concession agreements.

In the case of Maynilad, more than 95 percent of its service area already has access to potable water when they need it. Any investments moving forward are geared towards complying with the directives of the Clean Water Act and the Supreme Court ruling.

As early as last year, Maynilad and Manila Water were supposed to have the new water rates in place that would allow them to recover the investments already on the ground.

But the MWSS, bowing down to pressure from a few NGOs, is having second thoughts, not realizing that any decision it will make on the rate rebasing will have very serious and dire implications on the quality of our waters, especially Manila Bay.

Whether it be now or during the next administration, we the consumers have to pay, for all the investments made to provide us with stable water supply.

What I know is that what is being asked by the concessionaires is a change of about 80 centavos to P1 per cubic meter per year which is around the cost of one text message. The concessionaires have made it clear that their bottomlines would hardly benefit from the change in rates because the fees that we are paying are used to recover their cost of investments, pay for the loan incurred by the MWSS, plus a little return which by the way is even lower than the cost of money. Well, as business entities, they are allowed a little return on their investments.

The MWSS has received commendation from the President for having reduced its losses, and finally making money, thanks to the concession fees paid by Maynilad and Manila Water.

If government really wants to help the consumers, then it should consider removing the 12-percent VAT on water as well as the huge bonuses of the MWSS board.

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