MANILA – The government panel reviewing the agreement with water supply concessionaires has submitted its proposals to Maynilad Water Services Inc. (MWSI) for scrutiny.
Department of Justice (DOJ) Secretary Menardo Guevarra told newsmen Wednesday that Maynilad was also furnished with a copy of the revised agreement recently concluded between the government and Manila Water Co. Inc. (MWCI).
“As starting point for discussion, the government panel sent a copy of the revised concession agreement with Manila Water to Maynilad for its consideration. I understand that Maynilad has referred the said concessionaire agreement to its principals and is presently awaiting their comments. Thereafter, the two sides will come together and commence their discussions,” Guevarra said.
Guevarra added it is now up to Maynilad to complete the renegotiation of the concession agreement which expires next year.
A meeting is tentatively scheduled on Monday, May 3.
“The ball is in Maynilad’s court. Note that its original concession agreement will expire in 2022,” he said.
The revised agreement between the government and MWSI was signed last month.
The government panel is composed of the Office of the President, Department of Finance, Department of Justice, Office of the Solicitor General, Office of the Government Corporate Counsel, and Vince Dizon, who is the Presidential Adviser on Flagship Programs and Projects and president of the Bases Conversion and Development Authority.
‘Onerous’
A review by the DOJ showed the water contracts were “onerous and disadvantageous to the people, relative to the terms or periods, government non-interference provisions, as well as concessionaire indemnification for losses”.
Another onerous provision is the extension of the contracts to 2037, considering that the extension was granted 12 years before the original expiration of the 25-year concession agreements in 2022.
In March 2019 when water service interruptions hit Metro Manila and nearby areas, President Rodrigo Duterte threatened to fire Metropolitan Waterworks and Sewerage System officials and revoke the contracts with Manila Water and Maynilad.
Duterte directed the DOJ in November last year to discuss with the two water concessionaires the proposed revisions of their existing contracts.
MWCI and Maynilad get their water supply from Angat Dam for delivery to customers in service areas that include Metro Manila and parts of Cavite and Rizal provinces.
MWCI is a joint venture led by the Ayala Corporation. Its franchise area includes Mandaluyong, Marikina, Pasig, Pateros, San Juan, Taguig, Makati, and parts of Quezon City and Manila.
It also services Antipolo City and the Rizal towns of Angono, Baras, Binagonan, Cainta, Cardona, Jala-Jala, Morong, Pililla, Rodriquez, Tanay, Taytay, and San Mateo. (PNA)
