‘Provisions in concession agreements not the fault of water firms’

MANILA, Philippines - Sen. Juan Ponce Enrile said yesterday that the water concessionaires should not be blamed for the provisions in their concession agreements since it has the blessing of the Metropolitan Waterworks and Sewerage System (MWSS).

Enrile said the only remedy to the situation is for the Maynilad Water Services Inc. and Manila Water Co. to agree to renegotiate their contracts with the government.

He said Congress has no role to play in the issues raised by the consumer groups against the two water concessionaires, as he noted that their contract is with the MWSS. He said Congress only deals with the grant of franchises.

“They are governed by their contract. They do not have any franchise because the franchise holder is MWSS. They were given a contract and the one that governs that contract is not a law, not the franchise of MWSS, but the contract between MWSS, representing the government, and the Ayalas in the case of Manila Water,” Enrile said in an interview with TV-5.

The senator said whatever charges collected by the two firms – including the tax exemptions – are contained in their respective contracts or concession agreements with the MWSS.