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Water agreement with Maynilad almost a done deal – Guevarra

Published May 4, 2021 01:35 pm

Maynilad Water Services, Inc.

Negotiation on a new water concession agreement (CA) between the government and Maynilad Water Services, Inc. “was smooth and easy,” Justice Secretary Menardo I. Guevarra said on Tuesday, May 4.

“Except for a few matters pertaining to Maynilad's business plan, JICA (Japan International Cooperation Agency) loans, and public listing of shares, the parties are in agreement on the rest of the proposed new concession agreement with Maynilad, which takes off from a similar concession agreement with Manila Water” (Manila Water Company, Inc.), Guevarra said.

The meeting between representatives of the government and those of Maynilad Water’s was held last Monday, May 3.

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

President Duterte had pushed for the revision of the pre-existing water concession deals with the two companies as early as December 2019 after a Department of Justice (DOJ) panel of reviewers found numerous onerous provisions.

Manila Water had signed a new CA with the government last March 31 and the agreement will be enforced six months from the date of signing.

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

He said the most important feature of the new agreement is the removal of the non-interference clause which prevents the government from having a say concerning water rates.

Also, the new provisions included a ban on water rates increase until Dec. 31, 2022, he added.

“Definitely the revised water concession agreement will be beneficial to the consumers because this concession has been deemed as a public utility and therefore all the things associated with an enterprise being considered a public utility will now be applied to this water concession agreement,” he stressed.

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

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