17 September 2008
– The Freedom from Debt Coalition today criticized Maynilad Water Services, Inc. (MWSI) and Manila Water Company, Inc. (MWCI) for practicing ‘business without risk’ and ‘milking consumers dry’ as the two water concessionaires announced their plans of water rate hikes starting October to cope with the weakening of the peso against the US dollar.
In a statement, the water rights advocates also criticized the so-called Foreign Currency Differential Adjustment (FCDA) mechanism for prioritizing the financial standing of the concessionaires. FCDA is an added component of the concessionaires’ water bills which is used to cover for foreign exchange gains and losses in the foreign-denominated loans acquired by Manila Waterworks and Sewerage System (MWSS) and the concessionaires.
Edwin Chavez, FDC vice president, said the FCDA is an unwarranted safety net provided to the concessionaires at the expense of Metro Manila consumers.
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