MWSS, MWC extend anew concession effectivity

Metropolitan Waterworks and Sewerage System (MWSS) and Manila Water Company, Inc. (MWC) have signed a Fifth Amendment to the Revised Concession Agreement (RCA) covering the operation of the waterworks and sewerage services in the Service Area East.

In a disclosure to the Philippine Stock Exchange, MWC said this amendment further extends the Effective Date of the RCA to the date of receipt by MWC of the signed Undertaking Letter from the Republic.

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It noted that, “The Undertaking Letter is the remaining condition precedent to the effectivity of the RCA.” The Revised Concession Agreement (CA) confirms the continuation of the concession until July 31, 2037.

The Revised CA removes recovery of the Corporate Income Taxes and adjustment for foreign currency differential (FCDA).

The rate rebasing mechanism under the original CA is retained. Thus, the rates for water and sewerage services provided by Manila Water shall be set at a level that will permit it to recover over the term of the concession expenditures efficiently and prudently incurred and to earn a reasonable rate of return.