‘Razon’s stake in Manila Water won’t change government stance’

MANILA, Philippines — Regardless of who holds shares in Manila Water, onerous provisions of its contract with the government will be revised and put in order, the Department of Justice (DOJ) said yesterday.

In this context, Justice Secretary Menardo Guevarra said the fact that 25 percent of Manila Water’s shares of stock are now owned by business tycoon Enrique Razon Jr. would have “no effect whatsoever” to government’s stance.

Razon has invested P10.7 billion in Manila Water, equivalent to a 25-percent stake in the Ayala-owned water firm that operates the east zone.

The sale happened at a time when President Duterte ordered a review of the existing government concession agreements (CAs) with the two water firms, Manila Water and Maynilad.

“The CA will be revised for the benefit of the consuming public, regardless of the ownership of the water company,” Guevarra said. 

The DOJ secretary is part of the team tasked with revising the contracts, which the President views as heavily favored to the two private water concessionaires and disadvantageous to the public.

The government has been preparing the draft contracts that would be offered to the two firms before their 25-year contracts expire in 2022.

Guevarra assured the water firms that the draft contracts would be fair and equitable for the benefit of their clientele.

“Inputs on the financial and commercial provisions are now being incorporated in the draft. Once consolidated, we may start discussions with the concessionaires in March,” he said. 

The draft revisions on the contracts are expected to be completed sometime in June this year.