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DOJ sees 'win-win solution' in water deal reviews

By Benjamin Pulta

February 10, 2021, 7:39 pm

<p><em>(File photo)</em></p>

(File photo)

MANILA – Justice Secretary Menardo Guevarra on Wednesday said he sees a 'win-win' deal for all parties concerned under the revised water concession agreement being discussed by the government with water concessionaires.

“The review panel is currently discussing the draft revised water concession agreement with Manila Water. We will sit down with Maynilad soon after. Suffice it to say that the revised water concession agreement is a great improvement over the original agreement, as it does away with the onerous provisions of the latter, without making the concession less economically viable,” Guevarra said in a message to reporters.

Last year, Guevarra assured that the government's review of the contracts with water concessionaires to weed out onerous provisions will not be affected by changes in the corporate ownership of the firms.

Ayala-controlled Manila Water supplies water to Metro Manila's east zone, which covers 6 million people in the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, and some parts of Quezon City and Manila, as well as Rizal province's towns of Angono, Baras, Binangonan, Cainta, Cardona, Jalajala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay, and Teresa and the city of Antipolo.

The DOJ earlier said it will work with consultants from the Asian Development Bank (ADB) in the revision of the terms of the new concession agreement to be presented to Maynilad and Manila Water.

The revision process is eyed to do away with lopsided arrangements unfavorable to consumers which include provisions that left them with no choice but to shoulder billions of pesos in corporate income taxes.

President Rodrigo Duterte warned Manila Water and Maynilad officials of charges of economic sabotage over the onerous provisions of the 1997 contracts with the government.

Duterte's remarks came after the Justice department found the extension of these contracts to 2037 irregular, as its extension was granted 12 to 13 years before the original expiration of the 25-year concession agreements in 2022. (PNA)

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