Consumer group opposes DCWD’s P100 million loan
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Subscribe: Bayan Muna wants DCWD’s 30% water rate hike nullified, warns of new increase
Consumer group asks City Council to stop DCWD 100-million peso loan
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The consumer group has been opposing DCWDs plan to loan. They fear that it would result to an increase in the water rate — like what happened in the ’80s and ’90s — when the DCWD borrowed heavily from the Local Water Utilities Administration (LWUA).
LWUA required DCWD to increase its rate as a precondition for the loan. But Engr. Rodora Gamboa, DCWD general manager, said there is no reason to fear because this time, the LWUA did not require the water firm to increase its rate. “They know that we can pay the amortization even without increasing our rate,” Gamboa said.
Consumer Alert! said that the plan to privatize quasi-government utilities, like DCWD, is included the 2004-2010 Medium Term Development Plan for government to generate higher revenues.
“The scheme aims to convince water districts across the country to avail of LWUA’s loan package,” Aranjuez said. He added that ADB, WB and JBIC where LWUA sources most of its funds are banks that are the world’s strongest proponents of utility firm’s privatization.
On February 2007, President Arroyo certified Senate Bill 2595 for immediate enactment. The bill called for the privatization of water districts within five years.
The national federation of water unions and employees in the water districts, the Water System Employees Response (WATER), opposed the bill. The group cited the case of Metropolitan Waterworks and Sewerage System, which privatization in 1997, led to the worsening of the water services and the unprecedented increase in water rates. Its privatization also resulted to the mass lay-offs and the implementation of various labor contract schemes.
But Gamboa said the DCWD Board has always been against privatization. “We even oppose the Senate Bill 2595,” she said, explaining that the DCWD has been among the Mindanao water districts opposing it.
“We are against all forms of privatization,” Braganza also said.
The hearing for DCWD’s proposed P100 million loan started at the City Council’s committee on government enterprises last year.
Councilor Louie Villafuerte, committee head, asked DCWD to appear in the Council next session to justify their proposal to consumers. “In the name of transparency, you have to explain everything not only to the Council but to the consumers as well,” he said. (Marilou M. Aguirre/davaotoday.com)
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