Palace on Manila Water, Maynilad warning of higher water rates: They can do their worst, President will do his best

(Eagle News)–The Palace has shrugged off the warnings by Manila Water and Maynilad that water rates would increase if the water concession pacts’ extension was revoked.

“These concessionaires can do their worst and continue with fleecing the consumers while the President will do his best in serving and protecting the interest of the people,” Presidential Spokesperson Salvador Panelo said.

Manila Water and Maynilad officials issued the warning after the Metropolitan Waterworks and Sewerage System revoked the extension of the pacts until 2037.

This was after the Department of Justice, which had been instructed to look into the pacts at the height of the water shortage in March,  found  “onerous” provisions in them.

The DOJ said these included the ban on the government from setting water rates, and a  clause that said government should indemnify the firms for losses incurred in the event of such a government intervention.

The DOJ said even the extension of the contracts way before they were set to lapse in 2022 was “irregular.”

High-ranking officials of both Manila Water and Maynilad have written President  Duterte to express what they said was their companies’ willingness to renegotiate the provisions.

But  Panelo, who released the letters on Friday, Dec. 13, said that President Duterte had not yet accepted or rejected the offers contained in the two Dec. 10  letters signed by Maynilad chair Manny Pangilinan and Maynilad CEO and President Ramoncito Fernandez; and by Manila Water chair Fernando Zobel de Ayala.

“The subject is still under review by the President,” Panelo said.

The President has vowed to take to court the people behind the concession agreements.

Earlier, the Permanent Court of Arbitration in Singapore ordered the Philippine government to pay around P11 billion to Manila Water and Maynilad for supposed losses incurred by the two firms when the state refused to impose higher water rates.

But a seething Duterte said he would not pay the amount.

In response, Manila Water and Maynilad officials said they would no longer pursue the arbitral award.