Bechtel is one of the top ten water privatization companies in the world. Globally, it is involved in over 200 water and waste water treatment plants. When Bechtel privatized water in Manila in 1997 it was the biggest water privatizations in the world. They made many promises such as to lower rates, reduce leakages and expand the water availability. But after five years, although the two companies claim that more than 2 million more people are connected to the water system the government regulators dispute that number.
Promises made by Bechtel in 2001 to 2006:
-Increase the water supply from 87,4% to 97,1%.
-Increase the sewer coverage from 16% to 20%.
-Reduce the non-revenue water.
These promises seemed reasonable and very promising, the Philippines had no other choice than put their faith in Bechtel.
WHY...?
Metro Manila had very bad experience with state-run water utility which favored the water privatization.
Privatization promised better service, more connections, cheaper water, less wastage.
The initial price drop made privatization look like a success.
Finally, the Philippine government had no resources to finance the project for water systems...
And so they left it to Bechtel...
Bechtel and partner Suez took advantage of the liberty and responsibility they had...they controlled all the water in Metro Manila, they were monopolizing the situation.
They rose prices and reduced services resulting in the biggest water privatization in the world affecting 12 million individuals.
Maynilad (Suez) covered 6.5 million residents, only 4.3M of whom had water connections.
Manila Water-Bechtel covered 4.5M people, only 3M had water connections.