JUSTICE Secretary Menardo I. Guevarra said over the weekend that the government’s review panel is likely to proceed with its meeting with Maynilad Water Services Inc. on Monday to discuss the revision of its concession agreement.
Guevarra said the review panel has already sent a copy of the water concession deal the government forged with Manila Water Company Inc. to Maynilad officials.
“The meeting will push through tomorrow [Monday]. Until we hear the initial comments of Maynilad, we can’t say if we’ll have a concession agreement that is not too different from the concession agreement with Manila Water,” he said.
Guevarra said certain provisions that are in the revised concession agreement with Manila Water would be included in the deal being hammered out between the government and Maynilad.
“There are certain provisions which, I believe are non-negotiable. The removal of the non-interference clause, the non-chargeability of corporate income tax to consumers’ water bills, no government guarantees for future debts, Commission on Audit audit, and a more transparent governance mechanism are some of these,” he said.
The Justice Secretary could not ascertain how long the negotiation for the new concession agreement with Maynilad would last but noted that the parties need to finish the discussions before the original water deal expires next year.
“The ball is in Maynilad’s court. Note that its original concession agreement will expire in 2022,” Guevarra said.
It can be recalled that in 2019, President Duterte ordered the Department of Justice 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 that the Philippine government should pay P7.4 billion to Manila Water and P3.4 billion to Maynilad for the losses they suffered from an unenforced water rate hike.
Last March, the government through the Metropolitan Waterworks and Sewerage System and Manila Water signed a new concession agreement which is expected to pave the way for “better overall service and more reasonable charges to consumers.”
Guevarra, however, could not say if the government would no longer pursue criminal action against the executives of the water concessionaires and government officials behind the “onerous” 1997 contracts.
“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 [as] there are many factors to consider.”
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