DOJ set to sign new deals with Manila Water, Maynilad

MANILA, Philippines — The Department of Justice (DOJ) is set to sign new deals with Manila Water and Maynilad Water Service after it has settled major issues in the draft revised water concession agreements with the two firms.

At yesterday’s Laging Handa press briefing, Justice Secretary Menardo Guevarra said the water concession agreement review committee threshed out the major issues in the accord, but a follow-up meeting is still needed on Wednesday.

“We would have another meeting, so I suppose if there are any leftover minor points, we would be able to iron them out on Wednesday. After that, we shall be ready to sign a new water concession agreement with Manila Water and this would be followed with a discussion with the other concessionaire, Maynilad,” Guevarra said.

Last month, the DOJ chief reported that they had started the discussion on the draft revised water concession agreement with the two private firms.

While Guevarra did not reveal the contents of the revised agreement, he earlier said it is “a great improvement over the original agreement as it does away with the onerous provisions, without making the concession less economically viable.”

In 2019, President Duterte ordered the DOJ to review the concession agreements after discovering onerous provisions in the existing contracts and after the Permanent Court of Arbitration in Singapore issued a decision stating the Philippine government should pay P7.4 billion to Manila Water and P3.4 billion to Maynilad for the losses they suffered from unenforced water rate hike.

The government had been occupied in the preparation of new contracts as the existing 25-year water contracts, forged in 1997, with the two water companies would expire next year.

Guevarra said the draft contracts would be fair and equitable and benefit the clientele of Manila Water and Maynilad.

In November, he presented to the President their proposed new water concession agreements, explaining that these would eliminate onerous provisions in the previous contracts.

“We described to him (the President) in general the provisions that will have to go and new provisions that will be incorporated that will make the water concession agreements more equitable, more transparent and will lessen contingent liabilities on the part of the government, plus improving its governance system,” Guevarra said.