Maynilad, MWSS sign revised water concession agreement

Maynilad Water Services, Inc. has signed a new concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS).

Justice Secretary Menardo I. Guevarra said the new deal removed “onerous provisions,” as previously claimed by President Duterte, such as the non-interference clause and its ability to charge corporate income tax to consumers.

The revised concession agreement between the MWSS and Maynilad contains essentially the same terms as those in the recently signed revised concession agreement between the MWSS and Manila Water Company, Inc.

Contingent liabilities of the government have been substantially reduced, and a framework for better service to the public has been put in place.

Maynilad also signed a waiver on Tuesday terminating all related proceedings to its 2017 arbitral award which directed the government to pay ₱3.4 billion to the company,” said Guevarra.

Manila Water signed a waiver when the revised contract was finalized on March 31, terminating all proceedings related to its 2019 arbitral award which directed the government to pay the company ₱7.3 billion.

Signing the waivers means that the government will no longer pay for the compensation stated in the arbitral award and that it cannot be enforced by execution or by any judicial process anywhere.

Mr. Guevarra also confirmed that both Maynilad and Manila Water agreed to a tariff freeze until Dec. 31, 2022, to assist poor customers and aid the country’s economic recovery after the COVID-19 pandemic.

SOURCE: Business World