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Bawi puhunan muna: Maynilad, Manila Water reject revocation of concession extension

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Water concessionaires Maynilad and Manila Water have raised opposition against the decision of the Metropolitan Waterworks and Sewerage System (MWSS) over it unilateral revocation of the extension of concession agreements entered by the two water firms.

During the second day of the joint inquiry of the Blue Ribbon Committee and the Committee on Public Accounts in the House of Representatives, officials of the two water firms have stood firm against the decision of the MWSS after the agency has revoked the 15-year extension of concession agreements pf Salim-Consuji’s Maynilad Water Services and the Ayala-owned Manila Water Company.

Maynilad CEO Ramoncito Ferdnandez said they view MWSS’ decision to revoke the board resolution extending the concession agreement with “grave concern.”

“We would like to react, that it is with very grave concern that we view this action,” said Fernandez.

“We believe also that it is not proper to unilaterally revoke and agreement,” he added.

The extension of the two concession agreements until 2037 was approved by the MWSS through a board resolution in 2009.

With the revocation of the extension agreement, MWSS Deputy Administrator for Engineering Leonor Cleofas told to joint House panel that the water firms’ concession will end in 2022.

Meanwhile, Manila Water Board Member Antonio Aquino shared the same sentiments of his counterpart in Maynilad, adding that the extension was designed so they would be able capitalize their investments in the water concession.

“Base po doon sa approval ay ginawa po namin yung spending plan—that presumes na mababawi po namin ang investments for that extended period of time.

On Tuesday, the two water firms have waived its respective arbitral victories in the Permanent Court of Arbitration (PCA) against the Philippine government amounting to about P11 billion after it ordered to pay losses stemming from rejected water rate hikes.

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