Easing foreign ownership to benefit water sector

MANILA, Philippines - A delegate of the European Union is urging the Philippines to relax its foreign ownership rules in the water sector to attract more investments into the country.

In a briefing following the morning session of the Water Challenge Forum organized by the European Chamber of Commerce of the Philippines (ECCP) yesterday, EU delegation to the Philippines head of economic and trade section Walter Van Hattum said the country’s water sector is in need of more investments.

“Getting more countries in Europe to come to the Philippines will be part of the solution to the challenges (of the water sector),” Van Hattum said.

Among the main challenges that plague the water industry is the looming water crisis, particularly the lack of access to water in some areas; the degenerating water quality and the management of flood water.

Van Hattum said welcoming other countries to invest in the Philippines’ water sector would help increase competition in the market, which creates a “level field” among stakeholders.

He said foreign players should also be allowed to participate in the government’s procurement of water facilities.

“You can actually increase this (water infrastructure) not only by bringing in more money, but by getting more competition in the bidding process,” Van Hattum said.

“You’ll probably get better services for lesser price partly because you have new stakeholders coming in, but partly also because the existing stakeholders reduce their bids,” the EU delegate added.

However, in order to attract these foreign companies to invest in the Philippine water industry, the government must provide them a sense of security.

“One way of making them feel secure is allowing companies to have majority ownership,” Van Hattum said.

ECCP president Guenter Taus echoed Van Hattum’s sentiment as he pointed out that as foreign companies invest in the water sector, more technologies to address the problems of the industry would be available to the country.

“Let’s open it a bit. You don’t need money or investment for technologies to come into the Philippines, all you have to do is allow foreign companies to compete here,” Taus said.