Workers fear project with Ayala may lead to MCWD privatization

Employees of Metro Cebu Water District yesterday conveyed their apprehension over the agreement between the water district and a private consortium for the Carmen Bulk Water Supply project, which might result in privatization of the water district in the future.

The issue of possible privatization of the water district was among the weighty matters tackled during a forum among the MCWD management and employees, consumer groups and organizations held at the MCWD social hall yesterday.

The employees, who are members of the MCWD Employees Union, said the terms in the project agreement with the Ayala consortium were not favorable to the MCWD and to the consumers that would shoulder the increase in water rates if the project materializes.

Union president Engr. Ed Borela said the participation of a private firm in the project of MCWD could result in increase of water rates because a private firm is basically profit-oriented, not service-oriented.

Borela predicted that the project with Ayala might led to privatization of MCWD within the next five to 10 years, citing a precedent on the case of the Manila Water and Sewerage System after it entered into a joint project with a private firm.

But MWCD general manager Armando Paredes repudiated the opinion of the union and assured the members that such eventuality would not happen because MCWD is very fit to continue its operations thus there would be no legal basis for privatization to happen.

"We don't see any legal basis it would happen. There should be an enabling law because there are conditions before a private firm can take over the water district," Paredes said citing some conditions like bad service and unprofitable operations.

Paredes allayed the fears of the union saying it would not be possible for the Ayala consortium to take over MCWD in case the latter fails to pay the firm the water supply.

"As of now, I don't see any reason why MCWD should be taken over by the consortium or be privatized," he said, adding that MCWD has been encouraging private sector's participation in its projects to resolve the lack of budget.

MCWD has been hampered also with lack of technical experts to implement big projects thus the need for collaboration with private firms, Paredes said. - Wenna A. Berondo