Manila Water, Maynilad swimming in billions of profits while Filipinos fume over water crisis
Water for the People Network (WPN) believes that it is “unacceptable”for millions of Filipinos to suffer from a water shortage while Manila Water Corp and Maynilad Water Services Inc. swim in billions of profits over the last 10 years.
WPN, which is advocating for the return of water Metro Manila’s water concession to state control, said net income of the 2 private concessionaires have increased exponentially in the last decade: Manila Water’s profits jumped 137 percent to P5.7 billion in 2017 from P2.4 billion in 2007; and Maynilad’s profits zoomed 444 percent to P6.8 billion in 2017 from P1.3 billion in 2007.
WPN claimed that the East Zone’s water woes was caused by Manila Water’s decision to inflate profits by not investing in the facilities needed for the ample water supply in Angat and Ipo Dams to be brought to consumers.
WPN said the two concessionaires raked in billions in profits after jacking up their water charges by 879 percent for Manila Water and 574 percent for Maynilad since they took over these facilities during 1997 until January 2019.
“The concessionaires have used their monopoly power to overcharge customers and make these excessive profits. These increases were four to six times as much as the inflation rate, or the increase in the general price level, over that same period.” said WPN.
“Corporate management of water services has been efficient in producing profits but inefficient in ensuring cheap, safe and secure water services to millions of consumers. Such large profits amid looming months of erratic water supply for so many consumers is grossly unacceptable,” it added.
Water corporations have raked in huge profits in last 10
years: Manila Water income up by 137% to Php5.7B; Maynilad’s up by
444% to Php6.8B from 2007-17 https://t.co/qfrlSZAuZf #MalalangEkonomiya
IBON Foundation (@IbonFoundation) March