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Manila Bulletin devider Philippines devider National devider New water concession agreement with Manila Water to take effect 6 months from March 31 – DOJ

New water concession agreement with Manila Water to take effect 6 months from March 31 – DOJ

Published Mar 31, 2021 12:39 pm

Justice Secretary Menardo I. Guevarra said the new water concession agreement with Manila Water Company, Inc. will take effect six months after its signing on Wednesday, March 31.

(MARK BALMORES / MANILA BULLETIN)

Guevarra said “there are conditions precedent that need to be met before the new concession agreement takes effect.”

“But in no case shall the effectivity date be beyond six months from signing,” he stressed.

The new water concession agreement was signed with Manila Water by the government, represented by the Metropolitan Waterworks and Sewerage System (MWSS).

Guevarra said the new agreement will provide “definitely better overall service and more reasonable charges to consumers.”

A copy of the signed water concession agreement was not available.

Guevarra said the government will hold talks with Maynilad Water Services, Inc. also for a new agreement after the Holy Week.

Manila Water and Maynilad Water are two water concessionaires in Metro Manila and some nearby provinces.

The government panel in the negotiations on water concession agreements is composed of Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Vivencio B. Dizon and representatives from the Office of the President (OP), Department of Finance (DOF), Department of Justice (DOJ), Office of the Solicitor General (OSG), and the Office of the Government Corporate Counsel (OGCC).

President Duterte himself pushed for the revision of the water concession deals as early as December 2019 after a DOJ panel of reviewers found numerous onerous provisions in the existing agreements then signed with the two water concessionaires.

Last Nov. 10, the President approved the drafts of the revised concession agreements with Maynilad and Manila Water.

Among the onerous provisions found in the former agreement with the two water concessionaires include the non-interference clause which states that the government cannot interfere with the decisions of water concessionaires Manila Water and Maynilad in determining the water prices.

 The same provision also indicates that the water concessionaires should receive indemnification in the event the government stops any water price increase.

 The government panel had said that these provisions are contrary to the MWSS Law which states that the MWSS board of trustees determines the water rates which is either approved or disapproved by the Water Resources Board.

The previous agreements also required the companies to put up waste water treatment facilities and would be penalized if they failed to do so.

Published reports stated that both Manila Water and Maynilad have failed to erect waste water treatment facilities but neither have been penalized.

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