from www.stopcorporateabuse.com Please read the document for more detail and references.
It started in 1977 when, burdened by a heavy load of international debt, the Filipino government
turned over the management of Manila’s water supply to two private corporations. More than 3
million residents had no access to water. The system desperately needed improvement. To deliver the
city’s water, two new corporations were created, as joint ventures of local Filipinos and
Corporation (IFC), the World Bank’s private-sector arm, designed the privatization plan and worked
closely with the government throughout the bidding and implementation of the contracts. The IFC
also invested directly in Manila Water, loaning $110 million to the new company and acquiring a $15
million equity – ownership – share in the new venture. Which is a perfect description of the phrase,
“conflict of interest.”
increases between 450% - 850%. Quality has decreased. Public Health is more of an issue. What
the organization has done is to rigorously investigate and diminish the amount of unbilled water.
bidding, Manila Water was awarded a 15-year contract extension. As the Freedom from Debt
Coalition summarized in extending the current arrangement through 2037, “accounts of pervasive
corruption practices within the water system put to doubt whether these project funds were fully and
strictly applied to necessary infrastructure projects.”
with just 10% of the obligation. An Asian financial caused devaluation of the Peso by half relative to
the United State Dollar. Legally the debt is defined in dollars. In 2004, the government spent over 8
billion pesos to bail them out, in order to “preserve the integrity of the country’s water privatization
also exempt from the limit of 12% on profit margin utilities can accrue. Maynilad was taken over by
DMCI Holdings and Metro Pacific Investments in 2006, with promises to restructure the
underperforming utility. Manila Water has been churning out cash since its inception.