Kennedy Holt
Key Questions to Shape the
Argument
1) Do you think that safe/drinkable water is a right or a
privilege?
2) Is it the government’s responsibility to its citizens to
provide said water?
3) Do water utilities require private sector money in
order to upgrade and upkeep the ever expanding water
system?
4) Who should have access to water?
Now For Something Completely
Different…
While the private sector of the industry champions the
many “successes” that have occurred since their
involvement began, there have been just as many, if
not more, failures to contribute to their lapses.
Q:Why do countries continue to sell off water utilities
if the private sector has a bad track record?
A: The IMF and the WB, which necessitate the sell of
these utilities to western companies as a condition for
debt relief and loans.
Water privatization fails in Tanzania
This project, by City Water was supposed to be a model for other
developing nations by showcasing the ability to expand and improve
the existing system.
“‘It was expected that, by the end of the second year of service, a capital
investment amounting to US$8.5m would have been injected into the
project, but as of today, as we approach the end of that period, only
US$4.1m, which is less than 50 per cent of the target, has been
invested,' noted Lowassa. ”
http://www.ippmedia.com/ipp/guardian/2005/05/14/39435.html
This lack of invest led to pipes not being installed, thus no expansion,
and a decreased water quality to the residents already connected to the
supply.
According to City Water this lack of expansion was due to “unexpected
circumstances”
Walkerton, Ontario: The E. Coli
Disaster
7 people died and 2,300 others became ill as a result of
E. coli contamination in the drinking water.
Testing of the town’s water was passed onto the private
company A&L Laboratories. They discovered E. coli
contamination, but failed to alert public officials for
five days since regulations did not require it to disclose
its findings.
The UK meets the Scrooge of
Water
In 1989 the Thatcher government privatized the
regional water companies by selling their shares on the
stock exchange.
Since this time water cutoffs tripled in the first 5 years,
with 18,636 households disconnected in 1994.
Also these private companies have allowed for massive
leaks to develop in the piping. The reason for not
fixing them lies solely with ELLs.
More of the UK’s Problems
Water poverty in England and Wales 2004
Source: CCWater evidence to House of Lords
Evidence to House of Lords select committee p.142
http://www.parliament.uk/parliamentary_committees/lords_s_t_select/stwater.cfm .
South America’s Problems
Santa Fe, Argentina entered a privatization agreement in
September 1995 with Suez-Lyonnaise des Eaux.
In order to seal the deal the agreement fixed the limit value
of harmful substances to be found in the supplied drinking
water much above what established by Argentine law.
This was followed by price increases and less investment
than what was negotiated in the original contract.
Cordoba, Argentina had similar problems where the
company neglected to expand supply to low-income
communities due to lack of legal requirements.
Problems for Public Health
More exposures to micro-organisms
Potential for sewer gases escaping
Puts a strain on public health resources in small or less
developed areas not able to cope with these issues
Creates an issue with environmental justice when
these private companies make it impossible for lower
class individuals to afford water.
Micro-Organisms
Lack of safe drinking water connections for low
income groups forces them to look for other sources.
These other sources are not necessarily regulated or
protected from the pathogens that may enter them.
Creates the problem of increased cases of water borne
diseases
Sewer Gases
This problem concerns those who have their water
turned off and thus no way to refresh the water seal.
Gases include hydrogen sulfide, ammonia, methane,
carbon dioxide, sulfur dioxide and nitrogen oxides.
Pressure on the PH System
The combination of problems that can occur with the
previous two issues can put a strain on PH resources.
Smaller or less developed areas cannot cope with a
sudden influx of individuals afflicted by these
problems.
Environmental Justice Aspect
Most privatized water utilities drive up rates so poor
can’t afford it, or they fail to connect those low-income
individuals to the system. This results in an unfair
distribution of the water resource.
This again creates a problems because those that can’t
afford the water can’t afford the medical costs incurred
through the increased risk of disease.
Recap
Many of the private companies have failed to meet
investment and expansion promises they, themselves,
made.
Following a cancellation of these contracts many of the
companies have in turn filed lawsuits attempting to
recover “loss profits”
Even though privatization has served as a bad example
of water utility management an effective model has yet
to be found in many developing areas.
Key Questions to Shape the
Argument
1) Do you think that safe/drinkable water is a right or a
privilege? Right
2) Is it the government’s responsibility to its citizens to
provide said water? Yes
3) Do water utilities require private sector money in
order to upgrade and upkeep the ever expanding water
system? No
4) Who should have access to water? Everyone
Questions, Concerns, Innuendos
Food for thought: If power/energy are privatized, and
water becomes privatized…
+ = 10 X Profit
…and we all know what happens after that.