Maynilad Concession Agreement Extension

Both dealers had previously said they were open to a review of the concession agreement, but President Rodrigo Duterte opposed it. The water dealers declined to comment. THE MWSS Board of Directors met on Friday. Meanwhile, Jennifer C. Rufo, Head of Corporate Communications for Maynilad Water Services, Inc., said the western area water concessionaire would first like to see the new conditions. MANILA, Philippines – The Metropolitan Waterworks and Sewerage System (MWSS) has revoked the renewal of the concession agreement with Maynilad Water Services and Manila Water. In a mobile message, Manila Water Co., Inc. Corporate Strategic Affairs Head Nestor Jeric T. Sevilla said the company would await the government`s invitation to begin discussions on changes to the terms of its concession agreement. The extension of concession contracts until 2037 was approved by MWSS in a 2009 Board decision. “Ngayong umaga lang po namin tinanggap `yang Board Resolution (We only received the Resolution of the Board of Directors this morning), but we would like to react with very serious concern that we see this action and we also believe that it is not appropriate to unilaterally revoke the agreement,” Fernandez said. In a statement to the Philippine Stock Exchange on Wednesday, Manila Water Company, Inc. said they received a letter from the Metropolitan Waterworks and Sewerage System (MWSS) informing the company that the Council of Regulators is revusing a resolution on the renewal of the concession agreement.

However, Manila Water said the contact extension was in place. Concession contracts were due to expire in 2022 as part of the original agreement, but these were extended until 2037 during the term of then-President Gloria Macapagal-Arroyo. In early November, the two water dealers decided to forego their water price increases for 2021 as part of the adaptation of the tariff reference system approved by the Metropolitan Waterworks and Sewerage System (MWSS) as an aid to their customers. MWSS Deputy Engineering Administrator Leonor Cleofas unveiled the cancellation of the extension at the joint hearing of the House of Representatives of Good Government and Public Accountability and Public Finance Committees. Justice Minister Menardo Guevarra had previously banned the extension of contracts until 2037 from being deemed “irregular” before the agreement expires in 2022, as it will be 12 to 13 years before its initial expiration. He did not respond to the question of what provisions the East Area water concessionaire was negotiating and what was non-negotiable. Officials from Maynilad and Manila Water said they were willing to sit down with the government to amend the concession agreement. “We still count, but it will certainly be very high, because the justification for the extension at the time was to mitigate the increase in tariffs,” said Ramoncito Fernandez, president of Maynilad. However, due to the revocation, the concession of water companies will end in 2022. On Wednesday, Justice Minister Menardo I Gueverra announced that Duterte had approved the proposed new treaty, which lifted the supposedly burdensome provisions of the previous agreement. From a legal point of view, the integrated lawyer for Philippine President Domingo Cayosa also stated that the revocation of the board`s decision did not mean revoking the renewal of the contract.

Metro Manila (CNN Philippines, December 13) – Metro Manila Water Dealers can still provide services after 2022, the area is Manila Water dealership said. “The Executive Chef will read the letters from Maynilad and Manila Water to the public to ensure transparency and show that all measures taken by the government to resolve this issue with the two Manila water dealers are overboard and legitimate,” he said. In December 2019, the Ministry of Justice stated that it had established provisions for the charge, which are specified in the water contracts, such as the provision relating to the non-interference of the government in setting the amount and the responsibility