Water Utility Loan Opposed In Southern RP

June 20, 2007 at 4:18 pm | Posted in Uncategorized | 1 Comment

DAVAO CITY (Mindanao Examiner / 20 Jun) – A proposal by the local water utility for a P100 million loan to finance a pipeline project has allegedly drew strong criticisms from the public, an independent consumer group said on Wednesday.

The Davao City Water District (DCWD) has proposed to borrow money from the Local Water Utilities Administration to fund a pipeline replacement project. But the Consumers Alert!, a broad alliance against commercialization and privatization of basic social services, said the loan will be an added burden for water consumers and could also open the way for the privatization of the DCWD.

“Consumers coming from the various sectors in the city together with the union of the local water district today pledge allegiance to campaign against threats of water privatization looming with the Davao City Water District’s proposal to loan P 100 million.”

“The DCWD’s proposal of loaning P100M from the Local Water Utilities Administration (LWUA) is part of the scheme to lay the requirements for private take-over of public water service system which the DCWD is considering to undertake,” Rudy Aranjuez, co-convener of Consumers Alert and chairperson of the Nagkahiusang Mamumuo sa DCWD, said.

The DCWD said the loan will be used to finance the Comprehensive Mainline Replacement Program (CMRP).

The CMRP includes the development of the pipelines in the Dumoy Water System such as those in Magsaysay Avenue, Maa Road, C.M. Recto Street, Mamay Road, R. Castillo and Lapu-lapu Streets, Sasa, San Pedro Streets, and Quirino Streets.

“But this will pave way for the added burden among the consumers who will bear the payment of the interest through water rate hikes,” Aranjuez said.

Frankie del Rosario, also a convener of the alliance, said that “broad and active participation of the people against threats of commercialization and privatization of basic social services implemented by the government and big capitalists should be felt”.

“People should register its opposition against regressive and anti-people policies and the only way is to forge our unity,” Del Rosario said. (Mindanao Examiner)

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  1. It’s important to keep an eye on the long-term success of a water utility in the area, even if the short-term financial costs are potentially high-risk.


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