The Metropolitan Waterworks and Sewerage System (MWSS) on Tuesday expressed confidence that the government will soon reach a new concession agreement with Maynilad Water Services Inc. (Maynilad).
MWSS Chairman and Acting Administrator Reynaldo V. Velasco’s optimism stems from the recent approval and signing of the revised concession agreement between the government and Manila Water Services Inc.
The concession agreement entered into by the government with Maynilad in 1997 is currently undergoing review by a government panel.
Velasco said he expects the new concession agreement will be, like that of Manila Water’s—“a win-win solution” that will benefit consumers, the government and the concessionaire.
The concession agreement with Maynilad was sealed during the term of President Fidel V. Ramos between the government and the partnership of Benpres and Lyonnaise des Eaux of France and covers the west zone of the concession area.
In 2007, during the Arroyo administration, it was re-privatized and the west zone was placed under the consortium of DMCI and Metro Pacific Investments Corp.
The west zone concession area is composed of the cities of Manila (certain areas), Quezon City (certain areas), Makati (certain areas), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon—all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario in Cavite province.
Reports quoting Justice Secretary Menardo I. Guevara said the government panel “will be proposing essentially the same terms and conditions as those that were contained in the revised agreement with Manila Water.”
The Manila Water concession agreement is patterned after the New Clark City Water and Wastewater joint venture agreement of the Bases Conversion and Development Authority that was developed with the advice of the Asian Development Bank. The agreement protects the interest of government and retains the economic viability of the concession.
“But of course, we recognize the fact Maynilad is differently situated compared to Manila Water so there will be probably a lot of discussions also with respect to possible modification of the terms and conditions,” Guevara was quoted as saying.
The signing of a new concession agreement with Maynilad is critical to the water security projects of MWSS, said Velasco.
Maynilad’s capital expenditure projects will rehabilitate and replace old pipelines, install new pipes in unserved areas, construct new pumping stations, reservoirs, and treatment facilities, among others.
Velasco added that a new concession agreement will boost investors’ confidence as many of the investors have adopted a wait-and-see attitude pending the signing of a new concession agreement.
Maynilad is the largest private water concessionaire in the Philippines serving over 1.4 million customers. It maintains and operates some 6,831 kilometers of primary, secondary, and tertiary pipelines. It has 35 pumping stations, 32 water reservoirs, and 28 in-line boosters across its service area.
Its reservoirs have a total holding capacity of over 700 million liters of potable water. Maynilad has 4 world-class water treatment plants: La Mesa Treatment Plants 1 & 2 and Putatan Water Treatment Plants 1 & 2 that produce water according to the Philippine National Standards for Drinking Water of the Department of Health.
To prevent the pollution of waterways and bodies of water, Maynilad processes wastewater and sludge through 19 sewage treatment plants, 2 joint sewage and septage treatment plants, and one septage plant. The combined treatment capacity of these plants is around 664,000 cubic meters per day.
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