The Metropolitan Waterworks and Sewerage System has revoked the resolution extending the concession agreement with Maynilad Water Services Inc. and Manila Water Co.
MWSS Deputy Administrator for Engineering Leonor Cleofas confirmed the cancellation during the joint hearing of the House Committees on Good Government and Public Accountability and on Public Accounts.
Cleofas said the decision to revoke the resolution adopted in 2008 was reached during a board meeting last Dec. 5. The board resolution extended the concession agreements with the water companies by another 15 years from 2022 to 2037.
“It was on the agenda that the board tackles the resolution on the approval of the extension of the concession agreement. That was brought about by the directive of the President tackled in the Cabinet meeting…they are now revoking the board resolution adopted in 2008,” Cleofas said.
Anakalusugan Rep. Mike Defensor initially asked MWSS to clarify if the extension of the concession agreement was scrapped.
Lawyer Howard Azardon of the Office of the Government Corporate Counsel also relayed to the joint panel that the two board resolutions on the renewal and extension of the concession agreement were revoked. He said the concessionaires were given three days to file their position on the matter.
Maynilad president and chief executive officer Ramoncito Fernandez and Manila Water former president Tiny Aquino said they only received the notice during the hearing.
Fernandez expressed Maynila Water’s “grave concern” over the MWSS’ supposed “unilateral” revocation of the extension agreement. “It is not proper to unilaterally revoke the agreement,” he said, citing that it was the president of the Philippines who signed the agreement through the Department of Finance.
Aquino said he is one with Fernandez in expressing serious concern over the revocation of the extension agreement.
The Department of Justice earlier said an onerous provision in the contract is the extension of these contracts to 2037 considering that the extension was granted 12 to 13 years before the original expiration of the 25-year concession agreements in 2022.
Manila Water is a subsidiary of Ayala Corp., while businessman Manuel V. Pangilinan’s Metro Pacific Investments Corp. owns a controlling stake in Maynilad.
The two private concessionaires supply water in Metro Manila and nearby areas under agreements signed with State regulator Metropolitan Waterworks and Sewerage System in 1997.
President Duterte lashed out at the water concessionaires after a review conducted by the DoJ showed the water contracts were “onerous and disadvantageous to the people, relative the terms or periods, government non-interference, as well as concessionaire indemnification for losses.”
During the previous House hearing, both Manila Water and Maynilad decided not to collect the arbitral awards worth more than P10 billion from the government as compensation for losses and damages in the non-implementation of water rate hikes a few years ago. (Charissa L. Atienza)
