THE majority of regional water utility companies (PDAMs) are in extremely dire straits. Despite a captive market, they cannot reach economic scale in their operations, are burdened by debts, and hence are on the verge of bankruptcy. The Department of Settlement & Regional Infrastructure stated that merely 9 percent of the 243 PDAMs can operate in a healthy manner (see table).

Bad management is cited as the root of all PDAM evils. Mismanagement is