MANILA, Philippines — Justice Secretary Menardo Guevarra announced yesterday a new water concession agreement, which has been signed between the government and the Manila Water that will progress better service and result in the enactment of the reasonable charges to its consumers.
Guevarra cited that the passing of the new contract with Manila Water was done last Holy Wednesday, alongside with the Metropolitan Waterworks and Sewerage System (MSWSS), who signed in behalf of the government.
Meetings and conferences with Maynilad Water Services will start after the Holy Week.
He highlighted that before the new agreement with Manila Water will be implemented, certain metrices should be met within the six months from the date when the contract was signed
Maynilad is the concessionaire for the west zone of Metro Manila, and Manila Water is the water provider for the east zone.
Secretary Guevarra gave a guarantee with this contract of the government with Manila Water and Maynilad would be highly valuable to the public. “The new water deals would offer a better service with more reasonable charges to the consumers,” he added.
In 2019, President Duterte ordered the DOJ to review the concessionary agreements of Manila Water and Maynilad with the government after onerous provisions have been revealed in the existing contracts after the Permanent Court of Arbitration in Singapore had issued a verdict stating that the Philippine government should pay P7.4 billion to Manila Water and P3.4 billion to Maynilad for losses sustained due to unenforced water rate climbs.
The government had been engaged in formulating new contracts because the prevailing 25-year 1997 water contracts with the two water companies will expire on 2022.
“The new agreement is a lot more reasonable than the original one. But I can’t say with any certainty that the government will still pursue any legal action from the old agreement. There are many factors that has to be considered,” Guevarra added.
