Consumers pin hopes on PrimeWater sale

With new investors looking to buy out PrimeWater in their local water districts, consumers are hoping that service in their areas would improve.

This was the reaction of some readers to my Tuesday column, Investors eye PrimeWater.

This is, of course, assuming that the Villars, would indeed decide to sell their water business.

As I said, no less than former senator Cynthia Villar, the wife of tycoon and Villar Group chairman Manuel Villar, had revealed that her husband wants to “dispose of” the water service provider, saying it’s being used against them politically.

Indeed, I noted that the Villars’ troubles regarding their already troubled PrimeWater practically doubled after they reiterated their support for their friends from Davao, after the ugly divorce of UniTeam and after Rody Duterte was flown to The Hague.

Reacting to my column, a reader pointed out it was not accurate and rather “unpleasant” of me to simply regard the Marcos administration’s investigation into PrimeWater as a political move.

But it cannot be ignored that politics is at play here, as it is with many businesses.

On the other side of the story, I believe that it was the Villars’ strong ties with the Duterte administration that enabled them to expand PrimeWater during those years.

Politics aside, Tony Gutierrez, a letter-sender, however said that PrimeWater’s service is simply bad. I am sharing his comment here, and that of other readers, in the interest of fairness.

“Politics or not, your overriding concern should be the complaints of the public (that PrimeWater) should serve,” he said, pointing out that the company was “remiss, incompetent and dishonest in the discharge of its franchise.”

He called the circumstances by which the company obtained its franchise dubious, linking it to Senator Mark Villar’s term as Department of Public Works and Highways secretary.

Senator Mark has clarified this, saying, “during my tenure as secretary of Public Works, I did not participate in any capacity whatsoever in any transactions or potential transactions between PrimeWater and any of its partner districts.”

Just the same, the reader said that had PrimeWater fulfilled its mandate efficiently and faithfully, the circumstances surrounding its franchise would have been “forgivable and justified.”

I received comments from other readers, mostly complaining about PrimeWater’s services.

One reader, a colleague, said that in her mother’s residence in Cavite, the water bill goes as high as P1,400 for a month’s consumption of only 35 cubic meters. For context, a Manila Water bill for a month’s consumption of 19 cubic meters amounted to P338.

Another reader said: “It seems the company did not invest enough to improve and modernize the water supply. I think the company lacks the technical knowledge to run this business. The same can be said about its failure to supply enough electricity in Siquijor.”

Alex Serrano, a regular reader of The STAR, also gave this comment:

“I sincerely believe that former Senate president and speaker of the house Manny B. Villar is right in wanting to dispose of PrimeWater which has been having problems for some time now, much of which I agree is beyond their control.”

“The service is really bad and consumers are having a difficult time,” said another.

Against this backdrop, consumers are hoping that the sale would push through and that a new service provider will provide better water service in their areas.

Cautionary tale

The experience of PrimeWater should serve as a cautionary tale for companies that want to enter into industries imbued with public interest, such as water and electricity.

As I earlier reported, investors are eyeing to buy out PrimeWater in some of the joint ventures it entered into across the country.

If the buyout pushes through, these new investors must make sure that they will indeed provide better service to consumers.

And this is where the regulators should come in and do their jobs better.

The Local Water Utilities Administration (LWUA), for instance, should make sure that a water utility company’s investment commitments materialize.

In fact, LWUA’s review of PrimeWater’s and other water firms’ contracts must be done regularly and proactively and not just when the taps run dry.

It is not fair for consumers to be charged for inefficient water supply or worse, no water at all. LWUA should be more proactive as a regulator.

Privatization shouldn’t be a nightmare. In fact, there are success stories such as the water concessionaires in Metro Manila.

The Razon-led Manila Water, which is the provider in our area, for instance, has been doing a great job, building on the success of the company previously led by the Zobels. In fact, I noticed that the water pressure is even stronger now.

Maynilad of the MVP Group and DMCI has also significantly improved services with massive investments. It has even reduced its water losses to 36.2 percent as of the first quarter of the year, from 66.4 percent in 2006 – the year the company was re-privatized.

Water security

In the long term, authorities and our water firms must continue to invest in water-security infrastructure for Metro Manila and the rest of the country.

As for PrimeWater, what the Marcos administration will do next is anyone’s guess. It must take action, if necessary, to send a message to the private sector.

At the end of the day, consumers deserve better from our government and the private sector – whether it’s water, electricity, health, education or flood control.

*      *      *

Email: [email protected]. Follow her on X
@eyesgonzales. Column archives at EyesWideOpen on FB.