The amendment of Ministry of Infrastructure which was included in an (unrelated) bill of the Ministry of Health, being yet another example of bad lawmaking, fools the unwary reader. For, under the reassuring title, «Renewal of the contract granting the exclusive right to provide water supply and sewerage services between the Greek public sector and EYDAP SA», the fourth article announces that water ceases to be a public good by definition and indefinitely. Three more years of the current form will be maintained. EYDAP and EYDAP SA, the maintenance and operation of the External Water Supply System (EWS) of the major metropolitan area is entrusted to EYDAP SA for a period of three years, which may be extended by agreement of the parties. After the expiry of this contract, the maintenance and operation of the EES of the major capital region shall be entrusted by the Ministry of Infrastructure and Transport to to a contractor selected through a competitive procedure in accordance with Law 3389/2005 (A’ 232)».
It is necessary to clarify that the External Water Supply System includes the lakes Mornos, Evinos and Ylikis as well as the network and extends to the prefectures of Aitoloakarnania, Fokida, Boeotia and Attica. It is also necessary to mention 3389/2005.
The choice of the Southwest government to use the PPP to privatise EYDAP, is interpreted in the light of two decisions of the Council of State. The first decision of the Council's plenary session, taken in 2014, characterized as unconstitutional the transformation of EYDAP into a private company. The second decision came from the Fourth Chamber of the Council and ruled as unconstitutional the transfer of the 50% of the shares of EYDAP and EYATH to the super-fund and the Hellenic Holding and Property Company. It is expected that the Plenary will also decide on this matter, due to the importance of the issue. Therefore, it's not that the government doesn't want to sell EYDAP to a private party, it's that it can't... Having said that, it is resorting to PPPs as a plan B, which may however be as disastrous as the more ... pure privatisation.
The three-year period chosen by the government to end the operation and maintenance of the EIS by EYDAP offers nothing but relief. «To understand why it chose this period of time and did not immediately announce the concession to a contractor, we must bear in mind the assignment of three consultants last year to carry out an equal number of studies on technical, legal and financial issues for the operation of the EIS. Obviously, this is the time, in their estimation, needed to prepare the studies and pave the way on the basis of the studies for the call for tender,» the representative of the employees on the Board of Directors of the company, George Alexandrakis, told us.
«The handover of the Water System to the private sector will cause huge environmental problems and will lead the company's tariffs to skyrocket», according to Petros Basteas, a trade unionist at EYDAP. «The expertise of EYDAP, which operates and supervises 40 km of network in an exemplary manner, is not transferable. Private operators will experiment and, worse, operating on the basis of cost reduction and profit increase, will drive up tariffs, in the absence of mechanisms to control them.».
The examples from abroad of the mismanagement of water companies by private individuals are too many not to be taken seriously. ’In Paris, where the city was divided in two and one part was operated by Suez and the other by Veolia, before the 25 years of the contract signed in 1985 had even been completed, the municipality took over water management in order to make the necessary investments that the private companies did not make«, adds Kostas Lyberis, a trade unionist. From the French example, let us note that nor has the notorious competition between private operators, which is supposed to always work in the consumer's interest, saved water quality. «In London, the municipality chose to pay £1 billion to the private sector to get the water back and stop the spiral of rising tariffs - falling water quality. And the most glaring example of the dangers of private speculation in water comes from the US, the Flint of Chicago. The dramatic deterioration in water quality was first noticed by paediatricians and dentists during the tests they carried out on children. Tests conducted subsequently, after overcoming the obstacles posed by the individuals, showed that the health problems were caused by the lead water pipes! The same will happen in Greece, let's not fool ourselves,» he said.
The next day, we can well foresee, if we consider electricity before and after the entry of the private sector and the privatisation of the PPC. Who could have imagined 20 years ago that tens of thousands of households would not have access to electricity? Or that a bill would cost half a minimum wage?; The entry of private companies into the capital's waters will make us nostalgic for the current cost of the bill, while thousands of households will be waiting like beggars for the municipality or the region to pay their bill so that they can cook and wash themselves.
We will call the water...water!
By Leonidas Vatikiotis
