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A statement on the impending awarding
of the Bulk Water Supply Project

By Tongtongan Ti Umili -Cordillera Peoples Alliance

August 13, 2005

While the Baguio Water District Board of Directors contemplates on the awarding of the Bulk Water Supply Project (BWSP) to Benguet Corporation (BC), the water consumers in Baguio are feeling the anxiety as the real issue behind this controversial project becomes clearer.

The bidding of the BWSP had its twist and turns. In July 2004, the original BWD Procurement Bids and Awards Committee rejected the bid of BC but their decision was reversed by the Baguio Water District’s Board of Directors (BWD Board). On May 13, 2005, however, the BWD Board deferred the issuance of the project’s Notice of Award to BC due to mounting opposition. But now, the awarding of the project seems unavoidable as BC continues to play its tricks.

The BWSP’s case is not totally unusual. In fact, it is part of a global phenomenon to privatize the provision of water service and to allow profit-hungry corporations to take control of water sources. Consequently, it will lead to government’s abandonment of its responsibility to ensure the people’s fundamental right to clean, safe, free/affordable and sufficient water.

While pro-bulk BWD directors and other local personalities are claiming that the BWSP will solve the water crisis in Baguio, this dream can never be realized.

With this project, the consumers will be burdened by unhampered water rate increases. A BWD director even claimed that with the BC’s bid, water rate will increase to around P85.00 per cubic meter. This will cause disconnection among those who cannot afford to pay and will make it hard for them to access sufficient water.

In addition, BWD will head towards bankruptcy with its financial capacity to pay BC. It cannot rely on additional connection to be able to pay for the bulk water knowing the low paying capacity of its consumers. If this happens, the Local Water Utilities Administration (LWUA) will take over BWP. However, LWUA is also facing dissolution and is not receiving enough allocation from the national government. BWD then will end up being privatized and with the evident interest of Benguet Corporation in the water industry, it is likely for BC to take-over our water utility.

Behind the BWSP is BC’s interest to take-over our water utility to monopolize water distribution (in the city and the BLIST area in the future) and to profit out of it at the expense of the consumers. This has happened in Bolivia, the United Kingdom, and even in Metro Manila.

The dreaded privatization is not an abstract concept as impressed by pro-bulk water BWD directors and other personalities in Baguio. It has historically happened and has not only lead to unaffordable water rates and poor service but to massive retrenchment of government workers in these utilities.

Amid the alarming situation now, the opposition reiterates that the BWSP will not solve the Baguio water crisis. We condemn in the strongest terms the possible awarding of the BWSP to Benguet Corporation. The BWD Board should now heed the call to finally close this controversial bidding by declaring a failure of bidding.

We call on Baguio government officials to take a stand against this project and to exhaust all means to block the awarding of the BWSP. We commend Mayor Yaranon for his vocal opposition. However, the City Council should also act. We challenge the city council’s Committee on Public Utilities, Traffic and Legislation to come up with a report registering that BC never appeared in a public inquiry and in many invitations of the honorable council. By now, this committee should also take a position in order to give the appropriate signal to the majority of our councilors who are still undecided on this issue.

The Local Government of Baguio should resist privatization. Our LGU should instead focus on a comprehensive study of viable alternatives to resolve the city’s water problem. More importantly, this study should incorporate those alternatives that will benefit the lowly consumers of the urban poor who do not have access to basic social services.

We also challenge the BWD Employees Union to take a stand against the privatization of BWD. As a progressive union, it must not only fight for the job security of its members but more importantly, it must affirm its commitment to truly serve the public.

We call on the Baguio consumers and the public to stand on guard. The BWSP should be junked!
No to the Bulk Water Supply Project, No to Water Privatization! #

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