‘Shape up or ship out’

The two water concessionaires already obtained foreign loans that could run up to billions of dollars to put up treatment facilities but have failed to do so.

PRESIDENT Duterte: Don’t wait for my action.

President Rodrigo Duterte on Monday made it clear that he will not hesitate to use “extraordinary powers” including a “takover” of firms, if only to assure there will be enough water for Filipinos.

“Let me be very clear to citizens and to all, you have the right to protest if it really would place your place in jeopardy. But if the safeguards are there, then between your concerns and the crisis that we are trying to avoid, I will use the extraordinary powers of the Presidency,” Mr. Duterte told reporters.

Pressed what specific powers he is considering, the President replied “police power of the state could be used.”

Should the current water shortage worsen, Mr. Duterte warned that he may even consider a “takeover” of the water distribution.

“I will go and operate it myself. I will take over and I will direct what to do,” the President said.

“I could not just allow people to go about without water even for drinking. You just place the safeguards. It might create some danger or damage but that is not my concern. My concern is the welfare, the greatest good for the greatest number. That is democracy,” he added.

Both Manila Water Company Inc. and Maynilad Water Services Inc. are being blamed for the ongoing water shortage after they failed to put up treatment facilities required of them by their contracts with the government.

The President, however, expressed confidence that government officials can address the water shortage issue.

“I have appointed enough men of equal talent to deal with the problem. I don’t know where they will get, but for me, ‘you produce water,’” Mr. Duterte said.

In a separate interview, presidential spokesman Salvador Panelo warned of drastic actions against Manila Water and Maynilad Water if the two service concessionaires are found to have failed in preventing the ongoing water shortage in Metro Manila.

Panelo stressed that the President could consider the ongoing four to 18 hours of water interruption in the metropolis in considering his move against the water concessionaires, including the termination of their contracts with the government.

“I suppose the fact that they have not undertaken corrective measures that will prevent the evolution of this upcoming crisis would be a factor that would make the President decide on drastic action against them,” Panelo said.

“If indeed they have not done anything, despite the fact that there was a crisis before and now it is being repeated, then the President may consider that factor,” he added.

Panelo explained the mere fact that there is a potential looming water crisis, it only showed the water companies have not done anything to prevent another one from happening. It will be recalled that there was also a water shortage in Metro Manila last March.

“I said if, if they have not and the consequence of that is this looming water crisis again, then they have not done anything and that factor may compel the President to do something drastic against them,” Panelo said.

“Obviously (they haven’t done anything to address the problem). Otherwise, there would not be a looming crisis,” he added.

Panelo maintained that the message is clear “’shape up or ship out.’ That’s the message of the President. If they are having a hard time, they should leave.”

Buhay Partylist Rep. Lito Atienza, for his part, blamed the failure of the two water companies to put up treatment plants as required by their contracts as the real causes of the current water shortage. He said it is not about the decreasing water level in the Angat Dam.

Atienza warned that under the existing contracts of the two companies and the government, the President can rescind the agreements anytime, if there are violations.

“At any time, the President can stop it. It’s an executive contract and the (Chief) Executive is the one who can cancel the whole contract,” Atienza said.

“I am happy, finally Malacañang is listening because based on what I read in the newspapers, the President is angry,” he added.

During his recent speech at the 45th Philippine Business Conference and Expo, President Rodrigo Duterte lashed out at the water companies for their failure to build water treatment facilities, an issue raised by Daily Tribune many times in the past.

The President did not explicitly name the water companies, but he was apparently referring to Maynilad and Manila Water.

“The failure of delivery on their side or service can merit the cancellation of the two. If you asked me, I really feel that it should be cancelled,” Atienza said.

Sen. Christopher Lawrence “Bong” Go vowed to suggest to Mr. Duterte the review of the water concession agreements.

Go said that he will carefully study pending bills regarding the creation of a Department of Water Resources (DoWR).

“For now, there are bills that my colleagues have already filed to create this department. Personally, I will continue to study the bills and I will consult my colleagues in the Senate along with the agencies of the government that are related to this,” Go told Daily Tribune.

“I support the bills creating the Department of Water so that there will be a government agency that will focus on the management of our water resources in the country. We need a faster, more efficient and more helpful response from the government when it comes to our constituents’ needs for clean and potable water,” he added.

Atienza stressed that apart from collecting fees from their customers, the two water concessionaires already obtained foreign loans that could run up to billions of dollars to put up treatment facilities but have failed to do so.

He claimed that the water companies were granted loans amounting to “hundreds of millions of dollars, probably even billions of dollars” to provide safe and continuous water supply.

Atienza, who once served as secretary of the Department of Environment and Natural Resources (DENR), said that 20 percent of the water bills being collected by Manila Water and Maynilad were allotted for the construction of wastewater treatment facilities.

He lamented that instead of offering solutions, Manila Water and Maynilad even threatened to pass on the penalties imposed by the Supreme Court (SC) for violating the Clean Water Act.

“If we have the facilities that should have been put up by these two contractors, even Laguna de Bay could supply water to the entire Metro Manila, we will never run out of water,” Atienza reiterated.

“Now, the problem in Angat Dam, why are these businesses not doing anything? My point is, if there’s a problem in Angat Dam, we should hear from Manila Water and Maynilad. What we are hearing are threats to raise prices, not solutions,” he added.

Atienza further said: “There is collection and more collection… they should not be fooling us.”

Earlier this month, Manila Water and Maynilad threatened to impose a 780 percent increase in water rate if the SC decision is implemented.

Currently, Manila Water and Maynilad are implementing water service interruption from four hours up to 18 hours. Both blamed the decreasing water level at Angat Dam, the main water source for Metro Manila.

At the same time, Atienza said the two water concessionaires should be challenged if they can still abide by their contracts or not.

“Where did the 20 percent you have been collecting for 22 years go? And now, you are asking for extension that will last up to 2035,” Atienza said.

“We should ask the two concessionaires, can they deliver or not? If you cannot, you just return them to the government,” he also said.

Sought to comment on the report of Daily Tribune on the absence of a multi-year masterplan to improve water services, Manila Water maintained that it is not responsible for developing new sources of water.

“The concessionaires are responsible for the operation and distribution of available supply as well as the rehabilitation of existing facilities. The government is responsible for the development of new water sources,” Jeric Sevilla, corporate head of Manila Water told Daily Tribune.

“However, we are closely coordinating with the government for medium-term water sources while the long-term water sources are yet to be online,” he added.

Sevilla added that the Metropolitan Waterworks and Sewerage System (MWSS) was in charge of government projects involving water facilities.

“In the case of Kaliwa Dam project, it would be best to talk to the MWSS as it is the one implementing the government project. MWSS also has a water resource roadmap for water sustainability for Metro Manila in the succeeding years,” he said.

For his part, MWSS chief regulator Patrick Ty said that the MWSS Regulatory Office has already submitted recommendations on how to improve water supply and services to the Board of Trustees.

“It’s up to the MWSS Board to decide. I am not at liberty to disclose it since I don’t know if all of it will be approved and referred to the DoJ (Department of Justice),” Ty told Daily Tribune.

Last August, the SC slapped both water concessionaires with P921,464,184 in fines and the government-run MWSS was also held jointly liable for violating the Clean Water Act.

A fine of P322,102.00 per day was also assessed for non-compliance with the Clean Water Act, stemming from a case filed by the DENR during the term of former President Gloria Macapagal-Arroyo.

The case stemmed from the failure of Maynilad and Manila Water to put up sewage lines and treatment facilities despite charging millions of households for such service.

Both Maynilad and Manila Water have filed separate motions for reconsideration before the SC, contesting its ruling even as they threatened to pass the penalties imposed against them to the customers.

In an exclusive interview with Daily Tribune, the President had already threatened to terminate the agreements with the private firms.

Mr. Duterte even suggested that these companies may be committing plunder for collecting fees on services that they are not delivering.

The group Water for All Refund Movement earlier accused Maynilad and Manila Water of collecting more than P50 billion in advance from customers for the establishment of facilities that have not constructed up to now.

WARM said the water companies already collected for the P732 million Wawa Dam project, the P45.3 billion Laiban Dam, the P4.3 billion Laguna Lake water supply project, the Tinugay sewerage treatment plant worth P800 million, the P130 million Novaliches aqua dam project, and the P5.4 billion Angat replacement project and earthquake contingent projects.

Maynilad denied any advance collection while Manila Water did not reply to Daily Tribune queries.

Meanwhile, Senate President Vicente Sotto III said that he will push for a more immediate solution before considering the creation of DoWR that was marked as a priority bill by the President.

“It’s still an option but I will insist on the building of desalination plants,” Sotto told the Daily Tribune when asked about legislating a measure that will create the new department.