This is the story of a city that said it would never privatize its water infrastructure. In 2007, Maynilad Water, a private consortium led by the French water giant Suez, succeeded in gaining control over the water supply for the Western half of Manila, Philippines. At the time, the Manila's City government claimed that this was not privatization, since only operation and management would be in private hands. All the pipes, sewers, and treatment plants would remain publicly owned. Enormous efficiencies would spring from allowing the private sector to handle the operation of the system. Corruption and politicization of water rates would become a thing of the past.

As it turned out, control over operation and management provided the private consortium substantial powers, especially once the City signed a 25 year contract. Annual rate hikes brought few of the gains predicted by city planners. Efficiencies were not to be found in the private sector. Maynilad produced misleading and falsified reports about how much it was improving water services. Any gains from reduced corruption were lost to profit taking and consultancy fees. Civic protest eventually led the City government to intervene and limit water rates. Without the ability to increase the flow of profits each year, Maynilad was headed towards bankruptcy. In 2002, the private partners pulled out. As described by Public Citizen: ‘Rather than express contrition to the water consumers that Maynilad had abandoned or just run for cover, the company turned around and promptly sued the Philippine government for over $300 million." They lost the case, but Manila residents have still not lost their distaste for private water services.

Yesterday, Winnipeg City Council approved a motion to set up a Municipal Corporate Utility for the City's Water and Waste system. It will be 100% publicly owned, they promise. Only the operation and management will be controlled by an undetermined, private partner. The satirist Horace once said, "Change the names, the story is told of you." The lesson of Manila rings familiar.