New concession agreement signed with Manila Water – Guevarra

MANILA, Philippines — Justice Secretary Menardo Guevarra yesterday said a new water concession agreement has been signed between the government and Manila Water that would improve service and result in the implementation of reasonable charges to its consumers.

Guevarra said the signing of the new contract with Manila Water was completed on Holy Wednesday, with the Metropolitan Waterworks and Sewerage System (MSWSS) signing in behalf of the government.

Meetings with Maynilad Water Services will begin after the Holy Week.

He added that before the new agreement with Manila Water takes effect, certain conditions should be met, “but in no case shall the effectivity date be beyond six months from signing.”

Manila Water is the concessionaire for the east zone, while Maynilad is the concessionaire for the west zone of Metro Manila.

The Department of Justice (DOJ) secretary gave assurance that the new deals of the government with Manila Water and Maynilad would be beneficial to the public. The new water deals would offer “definitely better overall service and more reasonable charges to consumers,” he added.

The government panel handling the new water concession agreement is composed of the DOJ, Office of the President, Department of Finance, Office of the Solicitor General, Office of the Government Corporate Counsel and Bases Conversion and Development Authority president and chief executive officer Vivencio Dizon.

In 2019, President Duterte ordered the DOJ to review the concession agreements with Manila Water and Maynilad after discovering onerous provisions in the existing contracts, and after the Permanent Court of Arbitration in Singapore issued a decision stating the Philippine government should pay P7.4 billion to Manila Water and P3.4 billion to Maynilad for losses incurred due to unenforced water rate hikes.

The government had been occupied in preparing new contracts because the existing 25-year 1997 water contracts with the two water companies expire next year.

“The new agreement is a lot more equitable than the original one. But I can’t say with any certainty if the government will still pursue any legal action arising from the old agreement. There are many factors to consider,” Guevarra added.