Government OKs extension of Maynilad, Manila Water concessions

MANILA, Philippines — The Economy and Development (ED) Council chaired by President Marcos has approved the 10-year extension of the concession agreements of Maynilad Water Services Inc. and Manila Water Co. Inc.

During its inaugural meeting yesterday, the ED Council (formerly known as the National Economic and Development Authority Board), approved the request of the Metropolitan Waterworks and Sewerage System to extend the revised concession agreements of the two major water service providers.

The extension of the concession agreements from July 31, 2037 to Jan. 21, 2047, aligns with the legislative franchises of both concessionaires as mandated by Republic Acts 11600 and 11601.

The Department of Economy, Planning and Development (DEPDev) said the extension is expected to accelerate capital investments.

In particular, it said the extension is “projected to generate additional government revenues amounting to P50.3 billion.”

The extension will also minimize tariff pressures and ensure access to safe, reliable and affordable water supply for Metro Manila and surrounding provinces.

“Ensuring water security is fundamental to fostering economic growth and improving the quality of life for our growing population. By aligning the concession agreements with legislative franchises, we are promoting policy coherence and long-term investment planning in the water sector, which are essential for delivering clean, reliable and affordable water services to millions of Filipinos,” ED Council vice chairperson and DEPDev Secretary Arsenio Balisacan said.

During the same meeting, the council approved two new infrastructure projects for enhancing connectivity and agricultural development.

The approved projects also include the P27.7-billion Farm-to-Market Bridges Development Program of the Department of Agriculture.

The program involves the construction of 300 climate-resilient modular steel bridges across 52 provinces in 15 regions.

“By improving physical connectivity in farming and fishing communities, the Farm-to-Market Bridges Development Program addresses persistent infrastructure gaps that limit market access, increase post-harvest losses and hinder rural productivity. It also aims to uplift rural incomes and improve food logistics, particularly in geographically isolated and disadvantaged areas,” Balisacan said.

The P5.1-billion Liloan Bridge Construction Project of the Department of Public Works and Highways also secured ED Council approval.

The project involves the construction of a four-lane, 721-meter bridge connecting Panaon Island to mainland Leyte to replace the deteriorated existing structure.

It is also expected to improve mobility and access in the municipalities of Liloan, San Francisco, Pintuyan and San Ricardo, as well as promote economic activity and job creation.

The ED Council was established following the enactment of RA No. 12145 or the Economy, Planning and Development Act, which took effect on April 27.

The council retained the original members of the NEDA Board and added the Secretaries of the Department of Health, Department of the Interior and Local Government and Department of Labor and Employment as new members.