Citizens concerned about Winnipeg’s move towards water privatization packed University of Winnipeg’s Eckhardt-Gramatte Hall on Monday, Sept. 21 to hear a speech on the topic by Maude Barlow, national chairperson for Council of Canadians.
Barlow, nicknamed “Water Woman,” is considered one of the foremost authorities in the world on water. Her credentials include eight honourary doctorates and she was senior advisor on water to the 63rd President of the United Nations General Assembly.

The City of Winnipeg is considering three corporations for the role of strategic partner in its waste-water utility. Barlow raised issues regarding the partnership, including the protection the North American Free Trade Agreement provides for private corporations. Chapter 11 of NAFTA allows a company to sue if its ability to make profit is obstructed.

“It puts profit over people,” said Michael Welch, Winnipeg chair of the Council of Canadians.

“There is the potential that if we want to boot them out of here and go back to a public system that they will sue us under Chapter 11 in NAFTA, if they go with one of the American corporations,” said Lynne Fernandez, researcher with Canadian Centre for Policy Alternatives.

The three companies competing for the spot are Veolia, CH2M Hill and Black & Veatch; three companies that are raising concerns of water watchers.

“I want to remind us that this is an American company and therefore, if they get this contract and the future city council changes its mind, under the terms of NAFTA, they have made an investment,” Barlow said, referring to Black & Veatch. “If the terms are changed they can sue for compensation of millions and potentially billions of dollars of lost future profits.”

“All of those corporations have problems,” said Fernandez. “They were very involved in the reconstruction of Iraq. You know the way the Americans just sold out contracts to their favourite companies… CH2M was one of those institutions that was in there.

“It’s disconcerting that corporations that have this sort of track record, we’re inviting them into our house.”

She said the city should seek an unbiased legal opinion on what our liabilities are under NAFTA and the World Trade Organization.

The private partnering strategy was passed in order for city council to ensure that the four-year deadline, set by the province, is met for $615 million worth of upgrades to the city’s water treatment system infrastructure.

A public-private partnership may not be the best option, said Welch.

“The government can always get a cheaper rate of investment than a private corporation … We could consider approaching the province and seeing if we can get an extension [on the deadline].”