Daloy o Patak?: When Privatization Leaves Filipinos Thirsty

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The jarring reality of water scarcity confronts millions of Filipinos daily, as they awaken to find their taps running dry. This is not a fictional crisis relegated to dystopian narratives, but a tangible and persistent challenge that undermines the fundamental promise of clean, accessible water—a basic human right internationally recognized. This “bangungot” (nightmare), as it is acutely felt, stems from the intricate interplay of privatization policies and governance structures that have, despite initial intentions, often exacerbated the problem of water access and equity in the Philippines.

The issue of water service in the Philippines, particularly concerning PrimeWater Infrastructure Corp., has recently surged to the forefront of public discourse. President Bongbong Marcos Jr.’s order to investigate PrimeWater, Senator Tulfo’s Senate inquiry, and Vice President Sarah Duterte’s claims of political maneuvering all highlight the critical intersection of academic theory and practical administration. This column argues that the current issues with PrimeWater exemplify the pitfalls of poorly managed privatization, where the pursuit of profit overshadows the fundamental need for reliable public service. My unique perspective, drawn from research in governance and public administration, will break down these complex issues, offering insights into how we can ensure “kasiguruhan” (certainty) in our water supply.

An alternative perspective can be found in Stewardship Theory, suggesting that cultivating a sense of shared purpose and empowering PrimeWater may better align its actions with the public interest, potentially mitigating service delivery challenges. Stewardship theory suggests that individuals are intrinsically motivated to do what is best for the collective good, especially when given autonomy and support. PrimeWater, as a private entity, is incentivized to maximize profits, which can lead to cutting corners on infrastructure investments and maintenance.

As the Manila Times reported, Senator Tulfo pointed out PrimeWater’s poor compliance with capital expenditure commitments, directly illustrating this misalignment of interests. The theoretical implication is that without robust oversight and regulation, privatization can easily devolve into a situation where the public’s needs are secondary to corporate profits.

As a public administrator and academician, I’ve observed firsthand how these theoretical problems manifest in real-world scenarios. I recall a similar situation with a waste management company where the drive for profit led to illegal dumping and environmental degradation. The local government’s failure to enforce regulations allowed the company to prioritize its bottom line over public health. In the case of PrimeWater, the numerous complaints about lost water connections and continuous billing without service improvements mirror this pattern. The administrative insight here is that privatization requires a strong regulatory framework and proactive monitoring to ensure accountability and prevent service failures. “Hindi pwede ang puro salita lang” (words are not enough); there must be concrete action and enforcement.

Another crucial point is the fragmented and often individualistic (“kanya-kanya”) approach to water resource management in the Philippines. The proliferation of joint venture agreements (JVAs) between PrimeWater and seventy-five local water districts, as highlighted in the Manila Times report, exemplifies this issue. While JVAs can, in theory, bring much-needed investment and expertise to local water districts, they also create opportunities for exploitation and regulatory arbitrage.

Further substantiating this assertion is empirical evidence derived from dissertation research conducted by a doctoral candidate at the University of Perpetual Help System DALTA, Las Piñas Campus. This study, focusing on Batangas Province, revealed a significant variance in the effects of Joint Venture Agreements (JVAs) on consumers, with a subset experiencing demonstrably negative outcomes. Such inconsistency underscores the imperative for a more holistic and coordinated approach to water governance, ensuring equitable access and sustainable resource management. The academic analysis pertinently highlights the risk of regulatory capture, wherein the regulatory framework is subverted to prioritize private interests, thereby undermining the intended protection of the public good.

From an administrative standpoint, the prevention of regulatory capture necessitates the presence of transparency, independence, and specialized expertise within regulatory bodies. Empirical evidence from regulatory reform initiatives suggests that the implementation of measures designed to enhance transparency, such as public hearings and the online disclosure of financial information, can yield effective results.

A further strategic consideration involves the recruitment of experts possessing robust technical backgrounds and a demonstrated commitment to public service. These approaches are frequently cited as exemplary practices in the domain of public administration. With specific regard to the case of PrimeWater, the proposition advanced by Senator Tulfo, advocating for the establishment of a Department of Water Resources Management and a Water Regulatory Commission, represents a potentially constructive step. However, the ultimate efficacy of these entities will be contingent upon their capacity to withstand undue political and corporate influence and to prioritize the interests of the public.

The water woes surrounding PrimeWater highlight the critical need for a balanced approach to privatization, one that prioritizes public service over private profit. The principal-agent problem and the risk of regulatory capture are challenges that must be addressed through robust regulation, transparency, and accountability. As we move forward, let us remember that water is not just a commodity; it is a fundamental human right. We must ensure that every Filipino has access to clean, reliable water, so that “ang daloy ng ginhawa” (relief and comfort) truly flows for all.

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