Maynilad: We’re ready to sit down with gov’t for concession review

Maynilad President and CEO Ramoncito Fernandez on Thursday said the firm is willing to sit down with government for a concession review amid Malacañang’s remark that the agreements with the two water concessionaires in Metro Manila is “onerous.”

Maynilad President and CEO Ramoncito Fernandez said that the water company is willing to sit down with the gov’t for concession review. @gmanews pic.twitter.com/VQ9aK7iqg4

— Dona Magsino (@donamagsino) December 5, 2019

“We have an idea of what the government wants reviewed. We’re just waiting for the formal communication to be sent to us but we’re willing to sit down and discuss with the government,” Fernandez said in an ambush interview in Taguig City.

Fernandez underscored that the existing concession agreement of Maynilad with the government was approved in 1996 and that the Metro Pacific Investments Corporation only won the concession in 2007. 

Maynilad chief operating officer Randy Estrellado echoed Fernandez’s statement that the water firm is open to discuss with the government its concerns about the concession agreement.

“We have not formally received any communication concerning the proposed amendment to our concession agreement. But we have heard the news reports and we are open to sitting down with government to address their concerns,” Estrellado told GMA News Online.

“The Concession Agreement is a contract between two parties and as long as both parties agree on the changes or amendments then I believe it is possible,” the Maynilad COO said.

Earlier,  Malacañang declared that government’s concession agreements with Maynilad Water Services Inc. and Manila Water Company Inc. were onerous.

President Rodrigo Duterte on Tuesday directed the filing of criminal charges against those behind the deals. An irate Duterte accused the concessionaires of of making billions of pesos from their customers while treating water as a commodity instead of public service.

“A review of the agreements with the Manila Water and Maynilad reveals that they are contrary to public policy and public interest, the same being onerous and disadvantageous to the people, relative the terms or periods, government non-interference, as well as concessionaire indemnification for losses,” presidential spokesperson Salvador Panelo said.

On Wednesday, Manila Water said an international court decision ordering the Philippine government to pay Manila Water Co. Inc. P7.39 billion to cover years of losses from unrealized rate increase stemmed from a breach of the concessional agreement committed by officials of the previous administrations.

“The arbitral award issued in our favor is for acts in breach of the procedure committed by officials of the previous administration, not the Duterte administration,” Manila Water said in a statement.

Maynilad likewise scored a victory two years ago as the arbitral court also ordered the government to reimburse Maynilad P3.424 billion in revenue losses from January 1, 2013 to March 10, 2015.

The water concessionaires separately brought the government to court after the Metropolitan Waterworks and Sewerage System (MWSS) denied their petitions to increase water rates in their respective concession areas and instead reduced the rates.

Though they won before an international tribunal, Manila Water and Maynilad are appealing a loss dealt against them by the Philippine Supreme Court (SC) last August. The SC ordered the companies to pay more than P921 million each for violating the Philippine Clean Water Act. — RSJ, GMA News