Is the private sector the best solution to respond to the Philippines population demands?
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In 1994, as the water resources became insufficient in the region of Manila and all the government strategies weren't effective enough, president Fidel Ramos called out for privatization. By 1997, Manila's water operations were divided into two sectors:
- The Eastern halve, owned by Maynilad (a joint venture controlled in majority by the french group Suez).
- The Western halve, owned by Manila Water (a partnership between different companies controlled mostly by the American corporation Bechtel).
This operation was the biggest sector ever privatised to date, as the metropolitan area of Manila (metro Manila) gathered more than 12 million people in the political, economic, social, cultural and educational centre of the Philippines.
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But by 2003, privatisation in Manila was extremely controversial. On one hand, it increased water supply and sanitation. On the other, it multiplied severely water prices (up to ten times higher in 15 years).
A further analysis is made on the two factors of this situation, Suez and Bechtel, the situation of Manila and reasons of such a change.