Press Release
February 9, 2009

EXPECT PUBLIC UPROAR OVER UNEXPLAINABLE WATER RATE HIKE

Senator Bong Revilla expects public uproar over the scheduled water rate hike this month unless Metropolitan Waterworks and Sewerage System (MWSS) Administrator Diosdado Allado satisfactorily explain his decision to allow water concessionaires to such increase.

"Administrator Allado has a lot of explaining to do not only to the national government but primarily to the public. In the wake of the financial crisis that we are facing, increased water rate is clearly another unacceptable burden to every household in Metro Manila," said Revilla, chairman of the Senate Public Services Committee.

The senator explained that it is not enough that the hikes be blamed to inflation and foreign exchange factors, as what Allado reportedly asserted. "The public wants clear details, not shallow reasons. If the MWSS can not give clean justifications, if will be better if they reconsider their decision and recall the hike order," he pointed out.

Revilla recalled that during a briefing at Malacañang last month Allado assured that there will be no increase in water rates in the greater Metro Manila area at least for this year. "Based on news reports, Administrator Allado even explained the timing of any rate increase for a basic service such as water at this time would be "socially irresponsible and insensitive" and the two firms have to justify the need for a rate increase and that if they are found to have failed in fulfilling their previous commitments, then a refund for the customers would probably even be required," he stressed.

Last February 3, the MWSS reportedly approved the rate increases of P2.27 per cubic meter on the basic charges of the Manila Water Company Inc. It also approved a rate increase of P2.81 per cubic meter on the basic charges of Maynilad Water Services, Inc. Both rate increases will take effect later this month. "Palace approval on the rate adjustment may not be a requirement, but public understanding is. If the MWSS will continue to defy demand for clear explanation, expect public uproar. Last weekend, water supply was interrupted in some service areas of Maynilad in Metro Manila and Cavite . How could the public accept water rate increase if there is no improved services?" the lawmaker added.

Manila Water serves some 80,000 households or 700,000 individuals from the East Zone that include residents of Cubao, Marikina, Pasig, Taguig, San Juan, Mandaluyong, part of Quezon City, Makati, Manila and Rizal Province while Maynilad provides water supply for some 150,000 households or 1.35 million individuals from the West Zone that covers Pasay, Navotas, Caloocan, Malabon, Valenzuela, Parañaque, parts of Quezon City and Makati City, Imus, Noveleta, Cavite City, Bacoor, Muntinlupa, Las Piñas and Manila.

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