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Friday, May 3, 2024

Takeover of water companies a bad idea

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President Rodrigo Duterte's warning to declare a state of emergency and take over the operations of the two water concessionaires in Metro Manila amid a supply shortage will not solve the situation in hand.

The shortage in Metro Manila and outlying areas stems from the swindling supply of the Angat and Ipo dams and the failure of the government itself to timely develop a new source of water despite offers from the private sector.

Takeover of water companies a bad idea

Rising population and economic expansion have caught up with the limited water supply in the capital region. Authorities, including the Metropolitan Waterworks and Sewerage System, already knew of a supply deficit of 57 million liters a day as early as 2016. The supply gap, according to a University of the Philippines National Engineering Center study, could balloon to 624 MLD in 2021 unless the present administration vigorously pursues water security infrastructure projects.

President Duterte is empowered by the 1987 Constitution to declare a national emergency and order the state to temporarily take over the operation of privately-owned public utility or business affected with public interest.

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The option, however, will merely bring the situation back to square one. The same water shortage will persist because the government cannot draw much further on Angat Dam's resource.

The state, as proven in the past, is also a bad business manager. The MWSS ceded its control over water distribution in the capital region because of funding problems and budgetary constraints. The agency grappled with non-revenue water, or water pilferage, and failed to efficiently run the distribution business.

The government, thus, had to privatize water distribution in the capital region. MWSS, for one, cannot handle the huge investment outlays required in upgrading water pipes and putting a stop to water pilferage.

But Duterte can use his powers to push for the speedy construction of the long-delayed 600 MLD Kaliwa Dam and other similar water infrastructure projects to address the over dependence of concessionaires on the Angat Dam that supplies 97 percent of the needs of Metro Manila and nearby provinces.

The Kaliwa Dam and other infrastructure projects that address the basic needs of consumers should receive national priority and be treated as “projects of national significance.”

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