MWSS privatization defended
LIKE anything big, the privatization of the Metropolitan Waterworks and Sewerage System (MWSS), has come under suspicion.
But as ABS-CBN's Pia Hontiveros reports, the involvement of big business players was inevitable. Speaker Jose de Venecia, says the privatization of the MWSS may signal the return of the oligarchs. But he believes it may be necessary for now.
If the 25-year deal has its critics, it also has its defenders among those who believe the MWSS is still better off in private hands. De Venecia agrees with privatization. But he had hoped small companies were given a chance to compete. But this may not have been possible. Only the big and established companies have the resources to bid in the privatization of MWSS, the world's biggest privatization of a water utility. Over the last few days the Palace itself has consistently defended the results of the bidding.
Public Works Secretary Gregorio Vigilar, says there is always a way out of the deal. The Ramos government had devoted its early years dismantling the monopolies in the banking and the telecom industry. Why should it now allow one or two families to control the capital's water supply?
Water pricing scheme
WHAT makes the MWSS the world's biggest privatization of a water utility. The task of upgrading the MWSS is not going to be easy. The winning bidders, Benpres-Lyonnaise and Manila Waterworks, will invest billions of dollars in the next 25 years.
That's why at the outset, government and the international finance corporation set stringent qualifications for local companies to bid for the project. They had to have financial muscle and experience in either water supply, communications, power and energy, construction, real estate and property development. They were also required to get a foreign partner with experience in managing a water utility.
The concession agreement between MWSS and the consortia provides no increase in water rates for the first five years. The current average water tariff is P8.78. When the concessionaires take over in May, it will go down to P4.97 in the west, and P2.32 in the east. That's on day one, even without any improvements in the system.
To be profitable, they'd have to address MWSS system losses. An estimated 56 percent of its water is lost to leaks and pilferages. Leaking pipes and faulty meters will have to be replaced. But the big investments will come on the sixth year when a sewerage system will be set up. At present, only seven percent of Metro Manila is covered by a sewerage system. Benpres says that's when tariffs will have to go up, but assures these will only return to their former level and only after ten years, granting inflation remains stable. Ayala Corporation expects to incur losses in the first years of its concession period.
Still, lawmakers want an investigation saying the new pricing system will be anti-poor.
Yet today, only 67 percent of Metro Manila are connected to the system. Those unconnected, mostly poor, pay 10 times what an MWSS customer pays.
In five years, coverage will be increased to 87 percent. In 10, universal coverage is expected. Both concessions promise better service at lower rates. As for the MWSS, it says contracts will be rescinded if they fail to live up to their commitments.
Army troopers, MILF agreed to halt hostilities
IN MAGUINDANAO, Moro Islamic Liberation Front rebels and army soldiers have finally agreed on a ceasefire. Under the terms of the ceasefire, both sides will stop deploying forces outside areas they control, and the MILF will dismantle its checkpoints leading to Buldon town.
The ceasefire agreement was signed by Army Major General Joselin Nazareno, and MILF official Lannang Ali. The deal puts an end to the fighting in Buldon, in which both sides claim to have caused heavy casualties. The Ustadz tells the faithful the gates of heaven are wide open to those who die defending Islam, especially in this season of Ramadan.
Many MILF fighters have already died in the fighting in Buldon, about half a day's hike from an MILF camp. Darul Aman is part of the defense perimeter of Camp Abu Bakr. The MILF believes its the strategy of the army to lay siege on camp Abu Bakr by concentrating its forces on the area.
Al Hadj Murad, the MILF's vice chairman for military affairs, believes the army's assault on Buldon is meant to weaken the MILF's position in the coming peace talks. Murad says the army has about a thousand soldiers in the area, backed by tanks, heavy artillery, helicopter gunships and bomber planes. The MILF's heaviest firepower is the rocket-propelled grenade.
From the air Buldon seems peaceful. Just beyond the mountains is Camp Abu Bakr, the MILF's main headquarters. An army officer says their objective is containment of the MILF to prevent the rebels from controlling areas outside their main camp. Today the government and the MILF agreed to suspend hostilities. The MILF will dismantle its checkpoints near Buldon, and the army will withdraw its forces.
After more than a week, the fighting has only resulted in a stalemate. Now both sides are once again considering peace as an option.
NBI says case vs Jaloljos coddlers strong
NBI Director Santiago Toledo, says they now have a strong case against the coddlers of Congressman Romeo Jalosjos. But they will come up with a list as soon as they have gathered enough evidence, probably within the week. Toledo says those under suspicion claimed Jalosjos forced them to take him in.
Meanwhile, the 27-year-old tricycle driver from Capiz, who claims to be the illegitimate son of Congressman Jalosjos says he's not after money. But he'd appreciate it if Jalosjos helps him finish college. The Panay News says Melchor Gabais has become some sort of a celebrity in Capiz. His mother, Ofelia had told the young Melchor he is handsome like his father. His mother was a 15-year old housemaid when Jalosjos allegedly raped her. Melchor arrived in Manila this evening to meet the father he never saw.
Meanwhile, Malacanang has approved the recommendation of the Philippine National Police leadership seeking to dismiss former Mindanao Task Force Chief Manuel Pepino.
PNP Chief, Recaredo Sarmiento, has formed a 5-man panel to begin the dismissal proceedings. Pepino is accused of violating police procedure on intelligence information when he announced that Jalosjos had fled to Indonesia.
Intensified campaign vs measles ordered
THE PRESIDENT has ordered health officials to intensify the campaign against measles. The health department says 64 percent of children nationwide have not been immunized.
Another child has died of measles today, raising the death toll to 44. At least 776 children are now in hospitals. The health department has launched a house-to-house immunization drive to combat measles especially in squatter areas. DOH Secretary Carmencita Reodica met with local health officials to map out plans to contain the disease. But Reodica insists there is still no epidemic.
FVR wants a modern electoral process in place for 1998
THIS EARLY, President Ramos wants to put in place safeguards that would make the polls in 1998, clean and credible. The President opened today a symposium on electoral systems in Asia.
The next national elections is still 17 months away. But President Ramos believes the country has barely enough time to get ready. Ramos wants to modernize the election process and do away with the excruciatingly slow methods of casting and counting the votes. The President wants a voter's card that would help eliminate election fraud. A faster tabulation of results would also make the elections more credible.
The government plans a computerized election process by next year. A similar one was tested in the ARMM elections last year. The Comelec says it needs the budget now to get things ready for 1998. Mr. Ramos says a modernized election is for the good of democracy and not his presidency. After all, he says, he won't be a candidate in 1998.
RP is moving to become a global financial center
THE PHILIPPINES is making plans to evolve into a global financial center.
Socio Economic Planning Secretary Cielito Habito, says the Philippines fully satisfies the criteria for a model financial service center. Habito adds, uncertainties over Hongkong's impending handover to China provides an opportunity to invite Hongkong-based investors into Philippine financial markets. But the country must first lay the groundwork, such as modern infrastructure, to be internationally competitive.
Meanwhile, the Philippine Amusement and Gaming Corporation has raked in a record P11.2 billion in revenues last year, 19 percent higher than the P9.4 registered in 1995. PAGCOR Chairman Alice Reyes is expecting a 7.24 percent growth this year for total revenues of P12.07 billion. Reyes atrributes the growth to an intensified marketing campaign in neighbouring Southeast and East Asian countries. PAGCOR operates 12 casinos throghout the country.
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Windsurfing
ED FAJERMO ended the reign of Europeans and Koreans at the Boracay International Funboard Cup. He topped 2 of the 5 heats, 4-to-count final, to become the first Filipino to win the over-all title in the Cup's nine-year history.
Fajermo, the 1991 Southeast Asian Games gold medalist and the current assistant coach of the Philippine Team, finished 2nd and 3rd in the other heats. Bruno Kaspers of Germany was 2nd. Coming in 3rd was another Filipino and a member of the national team, German Paz. As many as 126 sailors from 13 countries took part in the 6-day event.
The 4th Philippine International Hot Air Balloon Festival in Pampanga, was a huge success. More than 30 balloonists from several European and Asian countries participated in the event. The balloons came in different sizes and shapes. The biggest delegation came from Japan with nine entries.