Kennedy Holt

Key Questions to Shape the Argument1) 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 TanzaniaThis 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 Disaster7 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 WaterIn 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 ProblemsSanta 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 HealthMore exposures to micro-organismsPotential for sewer gases escapingPuts 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-OrganismsLack 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 GasesThis 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 SystemThe 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 AspectMost 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.

RecapMany 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 Argument1) Do you think that safe/drinkable water is a

right or a privilege? Right2) Is it the government’s responsibility to its

citizens to provide said water? Yes3) 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