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Tuesday, August 30, 2005
Consumer group to bar water rate hike
By Ben O. Tesiorna
DAVAO CITY -- A group of concerned Dabawenyos questioned Monday the water rate increase that will be implemented by the Davao City Water District (DCWD) starting September.
Consumer Alert! lambasted the decision of the Local Water Utilities Administration (LWUA) in granting the petition of DCWD to increase rates by 30 percent.
The group, in a press statement, said: "LWUA Resolution 151 did not present to the public the real reasons or basis why it approved the 30 percent water rate hike."
"To the dismay of Davao consumers, the DCWD officials in connivance with LWUA are pursuing to increase the rates even though majority of the Dabawenyos are opposing it as manifested by walkouts and protests during public hearings," the statement added.
The DCWD workers' union and the City Council also came out with resolutions opposing the move.
"We suspect that the approval has something to do with a deal between DCWD and LWUA officials. It is known that DCWD decided to withdraw the P4.2 billion loan offered by LWUA last 2003 due to massive protests from the local union and consumer groups since it is perceived as a prelude to privatization of the water firm," the group said.
"Now, the DCWD has to pay P42 million as consultancy charge to the LWUA. However, what's the point of paying it when it is an unsolicited offer from LWUA to the DCWD. The payment of the questionable consultancy charge could be used as a pre-condition of LWUA to grant the 30 percent water rate hike."
Consumers march
The group said they are not taking this unjustifiable rate hike sitting down.
"We are now preparing our battery of lawyers for the immediate filing of motion of injunction in order to provide breathing space for the suffering consuming public. However, this could be complementary to direct people's actions through street protests to pressure the DCWD and LWUA to heed the demands of the people," the group said.
On September 1, the group said it will launch a "Consumers' March" to dramatize the strong opposition of Dabawenyos to the water rate hike.
This will be participated by barangay officials and functionaries, various people's organizations, religious leaders, and consumer rights advocates, they said.
The group accused DCWD of various questionable decisions in the past.
"The DCWD officials have no economic and moral justifications for such increase since they are not transparent in their financial statements and details on the proposed Capital Expenditures (Capex) and that they have a lot to explain on the delay of construction of Panorama 2 Reservoir and various controversies such as the purchase of P140 million Magnolia lot and building in Matina and questionable cash advances/perks of about P8 million that violates Commission of Audit's rules and regulations and Presidential Decree (PD) 1145," the group said.
"Further, they have to explain the pending petition of the Board of Directors (BODs) before the LWUA to increase their honorarium from P12,000 per meeting to P20,000. The BODs reportedly conduct a maximum of four meetings every month, as provided by PD 198, the law that created local water districts, increasing the water rates would mean higher income and honorarium for the BODs," it added.
The consumer group also accused DCWD and LWUA officials of being insensitive to the condition of the majority of poor Dabawenyos.
"It is the height of callousness of the LWUA and DCWD officials not to consider the worsening economic conditions of Dabawenyos. About 25 percent of the total 144,000 active connections are receiving red bills from range amount of P198 to P245 a month. If 30 percent rate hike were implemented this September more and more concessionaires will be receiving red bills or even disconnection notices," the statement added.
Lots of money
The group chided the claims of DCWD chair Eduardo Bangayan that the water district is losing due to the rising cost of operational expenses like power. It said the water district is having an average net profit of 25 percent from 2000 to 2004.
As a government-owned and controlled corporation, DCWD is only allowed to gain an average net profit of 12 percent.
"It means that DCWD has a lot of money and it can absorb the inflation without raising its rates," the group said.
In a telephone interview Sunday morning, DCWD spokesperson Dominador Lopez said LWUA already approved their petition for a 30 percent water rate increase, and they have started posting notices of the water rate hike in public places Friday last week in accordance with law.
"So by law, the new rate will take effect seven days after our notice to the public," Lopez said.
The minimum charge of P80 will be increased to P104 and succeeding rate to P10.4 per cubic meter.
Lopez said the rate hike will provide better water service for the Dabawenyos considering the numerous projects the DCWD has lined up for this year.
Next month, three projects are to be completed. These are the Malagamot-Panacan reservoir worth P4.5 million, the well drilling at Wangan, Calinan worth P4 million, and the Indangan/Cabantian reservoir worth P4.5 million.
Four other well drilling projects at Los Amigos (Mintal), Dumoy (Toril), Malagamot Panacan, and Dacoville Subdivision are to be completed this year. The four drilling projects cost DCWD about P20 million.
Lopez added that within two-year's time they expect to finish constructing the Panorama reservoir with 6.2 million gallons capacity and worth P72.6 million.
He said these are just some of their projects in the pipeline.
Lopez said more projects will follow so that better, safer and a more efficient water service will be provided to Dabawenyos.
(August 30, 2005 issue)
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