Wednesday, March 05, 2008 DCWD board, management not in favor of privatization By Carlo P. Mallo
THE Davao City Water District (DCWD), contrary to claims by its workers' union and union supporters, are strongly against privatization and are trying to revive a Senate bill that has sought for the privatization of the water utility company.
In an interview Tuesday with DCWD general manager Engineer Rhodora Gamboa, she said it has been the stand of the company not to approve any plans for privatization.
"Even the board, we passed a resolution that showed our disapproval for the privatization of the company," Gamboa said.
Sometime last year, Senate Bill 2595, a bill that enforces the privatization of DCWD was proposed. The bill, however, was not acted on and failed to get sponsors from the senators.
"There might be another attempt this year to pass a similar bill, but we will definitely oppose it again, just as what we did the last time," Gamboa said.
She however expressed fears about the way things are going with regards to financial status of the water company. With an average of 30 percent non-revenue water for 2007, the company lost more or less about P270 million.
"Non-revenue water comes from the water that does not produce revenues for the company," Gamboa said, adding that examples of non-revenue water include the water used in fire fighting and wasted water due to leaks.
"But the water used in fire fighting accounts for only a very small percentage," Gamboa said.
On the global scale, the acceptable percentage of non-revenue water is pegged at 25 percent. The DCWD has an average of 30 percent.
"No water district in the world has zero non-revenue water, but it must be kept at a minimum," Gamboa said.
Although the non-revenue water in 2007 has decreased by two percent compared from 32 percent in 2006, Gamboa is still apprehensive that if the non-revenue water will not be addressed, it might continue to increase.
"If it reaches 50 to 60 percent, the company will be more susceptible to privatization," Gamboa stressed.
Citing the stories of other water district companies, Gamboa said there is a need to immediately address this problem lest DCWD go the way of Manila water suppliers.
"Maynilad had non-revenue water of about 60 percent, kaya madali napasok ng private companies, which could pull down the non-revenue water to 40 percent," she said.
"If we are able to change the pipes, we would be able to cut down the non-revenue water by at least 10 percent or P90 million will be saved," added Gamboa.
The P100 million loan of the company has been stalled last year as the employees union strongly opposed such, citing that it might be an excuse of the board to privatize the company. The board, for its part, has explained over and again that it will not allow the company to be privatized.
