Ruling on water contract seen in next two months

MANILA, Philippines — Ayala-led Manila Water Co. Inc. expects a decision on the government’s review of the concession agreement as early as next month.

In its virtual annual stockholders’ meeting Friday, Manila Water president and chief executive officer Jose Rene Almendras said the company has been working closely with the government to arrive at a solution that will be beneficial not just for the customers but other shareholders as well.

“We see it moving quite well and that by May or June, there might be a resolution on this issue already. We see the effort of the government to meet this deadline,” Almendras said.

“The government is giving a priority to bring this matter to a close. Even with the lockdown, they are doing a lot to keep discussions with the ADB (Asian Development Bank) moving,” he said.

ADB has been enlisted for the economic and financial aspects of crafting the draft contracts of the Metropolitan Waterworks Sewerage System with water firms Manila Water and Maynilad Water Services Inc.

Last January, Justice Secretary Menardo Guevarra said the new contracts that would replace the existing ones which allegedly contained onerous provisions will be ready after six months.

“We remain open with the government on the review of the concession. The involvement of the ADB sends a positive signal that discussions will be comprehensive and balanced,” Manila Water chairman Fernando Zobel de Ayala said.

“The completion of the negotiations with the government will provide a great deal of stability and make our banks more comfortable. All is proceeding well and we hope to get results very soon,” he said.

Manila Water has been submitting pertinent documents to the Department of Finance including past historical records, financial statements and other service obligation records.