THE Department of Justice-led review panel has already wrapped discussions on the provisions of the revised concession agreement that it would present to Manila Water Company Inc. (MWCI) for signing “in a few days.”
This was disclosed by Justice Secretary Menardo Guevarra, who expressed optimism that MWCI would be amenable to terms under the new contract.
The government panel handling the new water concession agreement is composed of the DOJ, Office of the President (OP), Department of Finance (DOF), Office of the Solicitor General (OSG), Office of the Government Corporate Counsel (OGCC), and Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer (CEO) Vivencio “Vince” Dizon.
“The government panel reviewing the water concession agreements … wound up yesterday their discussions on a new concession agreement with Manila Water Company, Inc. (MWCI); the panel will present the final draft to MWCI in a few days,” Guevarra said.
“We hope to conclude a new and better agreement with MWCI before the end of the month,” the DOj secretary added.
Guevarra noted that the final draft concession agreement would reflect key agreements on important financial and commercial terms that were discussed during several preliminary meetings between the panel and MWCI.
Once the agreement is signed, the panel will proceed with the negotiation for the revision of the government’s concession agreement with Maynilad.
President Duterte earlier ordered the DOJ to review the water concession agreements after discovering what the government deemed onerous provisions in the existing contracts. This, after the Permanent Court of Arbitration (PCA) in Singapore issued a decision saying the Philippine government should pay P7.4 billion to Manila Water and P3.4 billion to Maynilad, the other concessionaire, for the losses they suffered from an unenforced water rate hike.
Duterte lambasted Manila Water and Maynilad and threatened to file a case of economic sabotage against the two water firms over the “onerous” 1997 contracts with the government.
Guevarra earlier said among the provisions in the existing concession agreements that would have to go are the non-interference clause, barring government from the rate-setting mechanism between the two water firms and the Metropolitan Waterworks and Sewerage System (MWSS); and its twin provisions requiring government to pay indemnification to the private concessionaires if its interference in rate-setting causes them financial damage.