Manila Water slammed for Cardona plant delays, fees

Ralf Rivas

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Manila Water slammed for Cardona plant delays, fees
The Cardona water treatment plant was supposed to begin operating in 2018 and could have prevented the shortage crisis. A senator also questions why consumers were charged for it as early as 2015.

MANILA, Philippines – Senator Panfilo Lacson slammed East Zone concessionaire Manila Water for the construction delays of its water treatment plant in Cardona, Rizal, which could have provided additional water supply and prevented the shortage crisis.

In a Senate probe on the crisis on Tuesday, March 19, Manila Water chief executive officer Ferdinand dela Cruz said the Cardona plant was supposed to be finished in 2018, but it is only set to begin operations by the end of March this year.

The plant will initially provide 20 million liters per day (MLD), and eventually 50 MLD by April. Once fully operational, it will provide a total of 100 MLD.

Lacson also questioned why the Ayala-led company charged consumers prior to the construction of the facility.

Manila Water started collecting funds for the project in 2015, but construction only began in 2016. For Lacson, the additional charges should be suspended.

“Kung hindi makaprovide ng tubig, at least isuspend ‘nyo ‘yung additional charges (If you’re unable to provide water supply, at least suspend the additional charges)…. Just to show good faith, just to show good will,” he said.

Lacson then went on to ask how much was being collected per customer for the Cardona plant. However, neither Dela Cruz nor the Metropolitan Waterworks and Sewerage System (MWSS) could provide the figures during the hearing.

Lacson told them: Pera ‘yan, kinokolekta. Hindi ‘nyo alam pare-pareho?” (That’s money being collected from consumers. All of you don’t know how much?)

‘Highway robbery’

Lacson also scrutinized the concession agreement entered into by the government and Manila Water in 1997.

He said the agreement, in general, placed consumers at a disadvantage.

“It’s tantamount to government-sanctioned highway robbery. It seems that way. Why is that?” Lacson said in a mix of English and Filipino. 

MWSS Chief Regulator Patrick Ty said he heard that the government had to “sweeten” the deal to entice investors at the time the agreement was crafted.

Manila Water has a current allocation of 1,600 MLD from the Angat Dam. The company said demand has already reached as high as 1,750 MLD.

Refund?

Similar to the queries of the House of Representatives, Senate public services committee chairperson Grace Poe asked Manila Water whether it is open to giving customers a refund because of the inconvenience.

“Are the consumers going to be compensated or will their bills be lower for this month?” Poe said.

Dela Cruz said they will look into the possibility of a rebate.

“What I’ve instructed my team is to explore ways to provide some relief to those affected and the easiest there is an adjustment on the water bill,” he added.

Dela Cruz also said the adjustment would be on top of the possible penalties the Ayala-led company may face.

Ty said Manila Water could also see a reduction in its tariff once this is reviewed in 2022. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.