Maynilad seeks ‘way forward’ on tariffs

MANILA, Philippines — West zone concessionaire Maynilad Water Services Inc. is willing to settle with the government an arbitral court ruling requiring the latter to reimburse the Pangilinan-led firm P3.4 billion for losses from unimplemented hikes in charges awarded during a previous arbitration.

“That is being discussed with MWSS (Metropolitan Waterworks and Sewerage System). Should we come to terms with the tariff issue, then we are more than willing to drop the arbitration case,” Maynilad chairman Manny V. Pangilinan told reporters on the sidelines of the Putatan Water Treatment Plant 2 inauguration yesterday.

“We are trying to settle that. We don’t want to be in that situation with the government. We are willing to drop the case subject to agreement with government on how we move forward with the tariff,” he added.

Despite Maynilad’s pronouncement, Malacañang emphasized charges may still be filed against the water concessionaire if the government uncovers irregularity in the course of review of the concessionaire’s contract.

“If a crime has been committed, then we should prosecute regardless of whether the parties involved have withdrawn,” presidential spokesman Salvador Panelo said at a press briefing.

“Just like when you commit a crime of theft, you return the money, but you can still be prosecuted,” Panelo said. He added he is awaiting the justice department’s recommendation on the matter.

Maynilad president and CEO Ramoncito Fernandez maintained that there are many ways to settle the issue and these would be discussed with the government.

“It doesn’t exactly mean we will no longer collect. We will have to talk but we would like to cooperate with them on how to move forward,” he said.

It was in July 2017 when an arbitral tribunal in Singapore – acting on a case filed by Maynilad – ordered the government to reimburse the water firm P3.4 billion for losses from March 2015 to August 2016. The arbitral tribunal said Maynilad is entitled to recover losses from September 2016 onwards.

The losses were due to delayed implementation of relevant tariffs for the rebasing period 2013 to 2017.

The P3.4 billion is just a partial award as the company claims it continues to lose an average of P200 million monthly due to continued delay in the implementation of its alternative rate rebasing adjustment.

Pangilinan also told reporters he welcomed President Duterte’s order to prioritize the review of concession agreements, including the one with Maynilad.

“We welcome that review and we have indicated that to the President and we will cooperate in the review process. We are just waiting for advice as to whom we should speak with,” he said.

“It is hard to speculate on how that review process will turn out. But we expressed our faith and confidence with the concession arrangement and if the government wishes to review, then we will cooperate,” Pangilinan added.

Last week, Pangilinan and other private groups met with Duterte to discuss business matters and concerns of the business community.

The arbitral ruling, which became final last year, angered Duterte, who consequently directed agencies to review the concession deal, saying the government did not have a say on the contract terms.

The President also ordered a review of all government deals to determine if there are provisions disadvantageous to the public.

Also sparking his anger was the recent water service interruption in many areas in Metro Manila and Rizal serviced by Manila Water.

2 more plants readied

Meanwhile, Pangilinan said Maynilad plans to build two more water treatment plants as part of the firm’s target to process up to 600 million liters of water per day (MLD).

The P5.4-billion Putatan Water Treatment Plant 2 in Muntinlupa that was unveiled yesterday will source water from Laguna de Bay to lessen dependence on Angat Dam as water source.

The facility has a capacity of 150 MLD and uses a multi-stage process of dissolved air flotation, ultrafiltration, reverse osmosis and chlorination to treat water.

The plant has begun producing 100 MLD of potable water for some one million Maynilad customers in Muntinlupa, Parañaque, Las Piñas and Cavite.

“It took us a year to stabilize the supply situation here in Putatan. Our technology partners were challenged with the kinds of impurities that are in the lake,” Pangilinan said.

“But I think we have learned a lot and now we have fewer problems with respect to water quality,” he added.

He stressed water security is a “very serious commitment” of Maynilad.

“The third Putatan plant is being planned for construction two kilometers from this place,” he said, without elaborating.

Meanwhile, MWSS administrator Reynaldo Velasco lauded Maynilad for its latest project and cited the need to dredge Laguna de Bay to make it easier for water concessionaires to deliver clean water.

“We really need to clean up Laguna (de Bay) so it is not too difficult for Maynilad and the other water concessionaire to clean water and improve the (lake’s) water capacity,” he said.

“That will provide us more fresh water and less of salt water, and treating the water will not be a problem,” he added. 

Maynilad is the largest private water concessionaire in the country in terms of customer base, serving about 9.5 million people. It serves the areas of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon and certain portions of Manila, Quezon City, Makati and Cavite.

Maynilad is owned and managed by Maynilad Water Holdings Co. Inc., a joint venture among Metro Pacific Investments Corp., DMCI Holdings Inc. and Marubeni Corp.

It was granted a 25-year exclusive concession by the government to operate, maintain and invest in the water and sewerage systems in Metro Manila’s west zone. The concession deal was extended by 15 years in 2010. – With Alexis Romero, Ghio Ong