MCWD union protests proposed $400M loan

CEBU, Philippines - The Metropolitan Cebu Water District Employees Union (MEU) held a peaceful protest in front of the MCWD office yesterday as they urged the management not to push through the proposed $400-million loan from the Asian Development Bank.

With them in the protest were the Consumers Rights for Economic Welfare and the Progresibong Alyansa Alang sa Pampublikong Pagpanag-iya sa Tubig. They described the move to acquire the loan as “first large-scale water supply privatization in Asia.”

During the protest, MEU president Felicisimo Salcedo distributed free water to the public to symbolize free water service without any profit.

The MEU voiced their concerns on the ADB project, saying it may result in water prices rising to as high as P19 per cubic meter in 2015 from only P13 per cubic meter today.

The union alleged that the ADB’s Urban Water Supply and Sanitation Project will entail a loan of $400 million, of which $300 million will be sourced from the private sector and the remaining $100 million from ADB.

Aaron Pedrosa, the secretary-general of FDC-Cebu, said that the move will also push for the privatization just like what happened to the Metropolitan Waterworks and Sewerage System.

“While the MCWD asserts its view of addressing water sustainability issues, it should exercise prudence and be circumspect in entering into contractual obligations that in the end might undermine the consumers’ right to water,” Pedrosa said.

But MCWD general manager Armando Paredes laughed off the perception of privatization of the district saying that “we want to be the one to serve our customer.”

“They are assuming nga naa na’y existing agreement loan. If MCWD enters into a loan, first, there should be a reason to enter into an agreement,” Paredes said.

Paredes also said that it is not easy to get a loan and that MCWD will hold public hearings first on any water rate increase. It will also be the Local Water Utilities Administration that will approve or deny any water rate increase.

The water district services most of Metro Cebu and Consolacion town and a portion of Lapu-Lapu City. – (FREEMAN)