Maynilad chides MWSS for sowing ‘confusion, misinformation’

Maynilad Water Services Inc. has chided the Metropolitan Waterworks and Sewerage Authority (MWSS) for allegedly sowing confusion and misinformation to the public on the dispute in their concession agreement.

"The MWSS cannot claim that Maynilad has been found to be in breach as this prejudges the outcome of the case," Maynilad president Rafael Alunan III said.

He said while the case is still pending be-fore the internationally-recognized Major Dispute Panel, MWSS cannot draw on the performance bond posted by Maynilad.

The Major Dispute Panel has directed Maynilad to extend the validity of its $120-million performance bond from Aug. 1, 2003 to July 31, 2004. The same panel also required Maynilad to post an additional bond of $20 million covering the same period, although Alunan said this would still be clarified.

He said should the dispute with the MWSS remain unresolved by April 15, 2004, Maynilad must extend the validity of the $120-million bond until July 31, 2005 and post an additional bond of $65 million for the same period.

Maynilad served a notice of early termination of its concession agreement with the MWSS on Dec. 9, 2002 to expire on Feb. 7, 2003 but the MWSS sought and was granted a stay order by the Panel.

However, Alunan said with the performance bond, the Panel has ordered the concession to continue with both parties performing their respective obligations until a final award is made.

"Except the MWSS interprets it to mean that Maynilad should stop everything it is doing while MWSS is free to do what it wants," Alunan stressed.

He said the MWSS now wants Maynilad to reduce its tariff by over P8.28 per cubic meter after increasing it unilaterally by P4.32/cum in January which Maynilad, however, has not implemented due to the termination of the concession agreement.

"In effect, Maynilad is being penalized for undercharging." Alunan said, adding that these actions by the MWSS are "not only confusing but also absurd."

"Maynilad will continue to exercise its legal rights in defense against MWSS’s predations."