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Water Privatization

Entitlement for Water, the Provision for Privatization in Sri Lanka

Hemantha Withanage
Environmental Foundation Ltd

Water in its political role
Whether it is urban or rural sector, water services play a major political role in Sri Lanka. In this regard many government agencies are created to deal with water.

Local authorities, i.e. Pradeshiya Saba, Municipal and Urban councils supply water for domestic, commercial and industrial sector in retail. For those who cannot afford priced water are provided with community water pipes.

Sri Lankan water policy
The local water policy supported by the ADB states that only the private sector has the capacity to meet the water needs of the country. It considers water as a economic good. This is a major conceptual shift towards private sector involvement. This allows public water and sanitation services be in the hands of the private sector.

Impacts of privatization
Privatization means that the management of water resources is based on principles of scarcity and profit maximization rather than long-term sustainability. Privatization has not delivered high environmental standards, but has brought an increase in the price to the consumer.

According to International Water Management Institute :IWMI, which is actively working in Sri Lanka, the most important aspect of water pricing and privatization is that it encourages people to use water wisely, not to waste it.

When privatized the accessibility and affordability of water to women and children are greatly reduced. More than five million people, most of them children, die every year from illnesses caused from drinking poor quality water. Women and children, who bear most of the burden of daily household chores, have to work harder to collect water- often resorting to water from polluted streams and rivers.

Privatization reduces the democratic involvement of both citizens and governments in water management decision-making. As a result the public's access to information from corporations is restricted. The nature of the water industry is such that only one corporation can be involved in the management of water in a given region. Once private monopoly is established it is extremely difficult to reverse it.

Water Entitlements; What implications?
Currently, all water sources are public property. But if one owns a land one can draw water from the underground. The proposed water entitlement gives a transferable water right (entitlement) to the bulk water users. This will allow those bulk water users to sell their water entitlements to an outsider. Non-entitlement holder will have no rights to oppose this ventures but he or she will be the one who suffers.

The Sri Lankan water policy has been strictly focusing on water right allocation, i.e. entitlements. But the Policy does not specify who are not eligible for water entitlements.

There is a large number of multinational companies involved in water industries of the country. Although the new policy specifies that the people of Sri Lanka own water through entitlements, the policy is silent on how they handle the foreign companies in the water sector. Transferable Water entitlements could be an opening for the private water companies to get hold at the nation's water resources. There is no doubt that this policy is to serve as a water pricing mechanism.

To obtain water entitlements there is an initial payment under this policy and from time to time a fee should be paid to renew the entitlement. Otherwise water rights are automatically cancelled. This greatly affects farmers because their income is indefinite due to unexpected causes. If the entitlements are not renewed, they will not get water for the next season. Will this situation ensure food security?

When the price of water increases, it becomes less accessible to poor and they are forced to drink water that is unfit for human consumption.

Conclusion
The involvement of MDBs in the water sector is very harmful for the local water rights. This could give opportunity for private water companies to get hold of the local water resources. The transferable entitlements will be the tool to hand over this water ownership to the private sector. Decisions-making about allocation and distribution should be democratic and based on everyone's fundamental right to a clean, healthy water supply. Management of water resources needs to be based on long-term sustainability rather than on profit maximization The right to access water for life of people, animals, and trees should not be allowed to be violated by any policy.


The problematic areas with the policy draft prepared on July 2002(*1)

The first water policy was approved by the Cabinet in March 2000. Under this policy the Governments owns the water resourses and the public needs to have water entitlement in order to obtain water from any water sources.

The public protest against this policy began in November 2000 and the policy was changed after several months of protesting. Environmental Foundation conducted awareness programs and assisted public to organize against of this unjust policy. Most of the participants were farmers. As a result of these activities a new draft of the water policy has been released by the Water resources secretariat on 25th July 2002.

Water pollution:
If we really want to protect our water, there should be an active policy to control large scale water pollution by industries. It is known fact that industries are getting water for lower price, and that they contribute to extensive pollution by releasing untreated waste water to open water ways. There should be a strict policy process to cancel the entitlements of theses misuses. Though already there are rules and regulations regarding this, they are notenforeced.

Ancient Tank System:
Water sovereignty is the key factor of the economic sovereignty. Sri Lanka owned many traditional technologies to bring the water sovereignty to the country in the ancient times. This policy has completely forgotten our ancient tank system, which supplied water irrigation throughout the year. Historically, Sri Lanka has being a self-sufficient nation, and the tanks were the best method to collect rainwater. Watershed areas that are identified to have significant affects on the national water resources, this should be conserved and protected from being destroyed by urbanization.

Water for life:
Water is an issue, which should be looked beyond the human perspective. Water management needs to have environmental protection agenda, such as : protecting water from pollution, making necessary amount of water available, ensuring water sovereignty and protecting the water from being taken illegitimately. Furthermore, water is the basic need of the ecosystem and all other life forms. Therefore, water cannot be totally owned by the human.


(*1)This box is excerpted from Neththipola, Rathnawalee."Sri Lankan Water Policy: Pricing, Privatizing and Entitlements" Environmental Foundation, Ltd.) .

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