(Eagle News)–The Metropolitan Waterworks Sewerage System has revoked the extension of the water concessionaire contracts with “onerous” provisions until 2037.
The announcement of the cancellation of the extension of the contracts with Manila Water and Maynilad was made by Deputy Administrator for Engineering Leonor Cleofas during the joint House of Representatives hearing of the good government and public accountability and public accounts committees.
Without the extension until 2037, the contracts will lapse in 2022.
President Rodrigo Duterte has threatened to take over water services following the discovery of “onerous” provisions in the contracts entered into by the government in previous administrations.
According to the Department of Justice, these onerous provisions include a prohibition for the government to settle water rates, and a provision for the government to indemnify the water concessionaires in the event of such an interference.
The DOJ said the extension of the contracts way before they were set to lapse was also irregular.