Chambers back privatization gains for water

THE Makati Business Club (MBC) said the privatization of water delivery in the Philippines resulted in “indisputably better” services, with the process “considered a model around the world.”
In a statement, the MBC defended the concession system for water delivery even as it joined in the call for “accountability” for the water crisis as well as “long-term solutions” to ensure sustainable water supply for Metro Manila, on both the supply and demand side and measures to speed up the approval process for water projects.
“Makati Business Club supports the efforts that (Metropolitan) Waterworks and Sewerage System, other authorities, and Manila Water Co. are taking to investigate the water shortage that occurred this month in order to alleviate the situation, take steps to avoid or limit a repeat, and determine accountability and responsibility,” it said in a statement.
“MBC recognizes that it is critical for the government, the concessionaires, and other stakeholders to develop long-term solutions for both supply and demand. MBC stands ready with other business organizations to gather business sector inputs and support for these efforts. The most important among these solutions are to prioritize the development of and streamline the approval process for new water sources, but also include more efficient usage.”
“MBC reiterates its confidence in public-private partnerships in general and, in particular, the privatization of Manila’s water system, which is considered a model around the world. Our members suffered with the rest of public, from the shortage of water in our homes and our businesses. But service is indisputably better than before privatization. We are confident in the resolve of the concessionaires and regulators to make all efforts to improve reliability in the months and years ahead.”
The club’s statement was one of two issued Monday by major business groups on the water crisis, after services started to fail in early March in the east zone of Metro Manila, the concession granted to Ayala-controlled Manila Water Co.
In a joint statement issued Monday and signed, among others, by the American Chamber of Commerce, Inc. (AmCham) and the Foundation for Economic Freedom, whose members consist of retired technocrats and economic managers, business groups said they “welcome and fully support the directive of President Duterte to solve the water service disruption in the east zone concession within 150 days.”
“Accordingly, we are encouraged and confident that these interim measures will adequately resolve the water shortage and bring relief to consumers in the shortest possible time,” they added.
The signatories to the statement also included the Asia Pacific Real Estate Association; Financial Executives Institute of the Philippines; the Institute of Corporate Directors; the Management Association of the Philippines; and the Philippine Institute of Certified Public Accountants.
The signatories also noted that the privatization model in the water sector remains a “good” scheme, citing the huge improvement from nearly two decades when the water services were privatized.
“The volume of water saved from leakage is said to be equivalent to the output of a dam such that the great expense in constructing one in the past to cover that same volume was rendered unnecessary. Happily, gone are the waterless days of old. In fact, this privatization is being regarded as a good model before the international community for others to emulate,” they said.
They also urged the government to secure a secondary water source to address the growing needs of Metro Manila and its surrounding areas.
“Many lessons can be learned from this unfortunate episode and, hopefully, they will be employed to further improve the service and avoid a recurrence in the future,” they added. — Janina C. Lim