Water service fees to be hiked
The privatization of public utilities will result, not in reduced, but in increased, prices of basic services. This is being proven by the people's experience with Maynilad Water Services, the private concessioner that has been servicing western Metro Manila since the Metropolitan Waterworks and Sewerage System was privatized in 1997 on the IMF's orders. Maynilad Water Services is a joint venture of the Lopez-owned Benpres Holdings Corp. and Suez des Lyonnais des Eaux, a French company.
The ink had hardly dried on the Power Reform Act signed by Gloria Macapagal-Arroyo when Malaca�ang entered into a Memorandum of Cooperation on June 9. The memorandum calls for a P5 hike per cubic meter in water service bills. This is equivalent to a 73% increase in the basic water bill of P6.58. It is the second hike requested by Maynilad this year. In January, it raised its fees by 45 centavos per cubic meter.
Due to fierce criticism from the people, Malaca�ang temporarily revoked its consent on June 13 allowing Maynilad to abruply hike its water service fees. The increase will nonetheless be allowed, albeit gradually, supposedly to avoid the people's strong resistance.
Meanwhile, Maynilad employees are strongly opposed to a management plan to slash 10% off the salaries of all workers and supervisors and the cancellation of their vacation pay. Maynilad has threatened to lay off employees opposed to the scheme.
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