Go will suggest to President Rodrigo Duterte to review Maynilad’s and Manila Water’s contracts noting that these private firms are penalizing consumers.

Concessionaires Manila Water Company Inc. and Maynilad Water Services Inc. were asked to show a multi-year masterplan for the improvement of water services or risk their contracts with the government being revoked.

At least three pro-administration senators are seeking accountability from the two water concessionaires operating in Metro Manila as residents suffer from the new wave of service interruptions.

Senators Christopher Lawrence “Bong” Go, Francis Tolentino and Imee Marcos made statements indicating their inclination to revisit the concession agreements of both firms after both implemented water rationing in Metro Manila due to the claimed falling water level at Angat Dam.

The former presidential aide and now Sen. Go reiterated that he will suggest to President Rodrigo Duterte to review Maynilad’s and Manila Water’s contracts noting that these private firms are penalizing consumers.

“I do not believe that there is a shortage. Do not pass the burden to the people. You entered into that business, you should have an answer for that. You should have not signed the contract if you cannot comply with (your commitment) to supply water,” Go said.

“The President should have those (concession agreements) reviewed. I will suggest to the President to review the contracts that are not in favor of our countrymen,” he said.

In a statement, Marcos demanded the release of comprehensive master plans from the two water companies in which solutions to the yearly water shortage will be stated.

She pointed out that the Metropolitan Waterworks and Sewerage System (MWSS) had granted Maynilad and Manila Water 37 years to facilitate the operations, repair and refurbishment of movable assets and sewerage services in the west and east areas, respectively.

“With the long period given by the MWSS to these two water companies, they should think of ways that will not disturb and interrupt our countrymen especially in hospitals that need enough supply of water,” she said.

Previously, Marcos said she is considering an investigation of the concession agreements.

“Remember, they were already warned by President (Rodrigo) Duterte last March that their concession agreements will be terminated due to their failure, but until now they can’t still provide solutions to the problem in the water supply?” she said.

This was affirmed by Tolentino, saying the review of concession agreements should not be limited to their failure to give solutions to the water interruptions, but they must also answer their failure to build the required water sewerage facilities, which were also part of the monthly bill paid by the consumers.

“The concession agreements should be revisited not just because of the water shortage but the failure to establish the water treatment plants required and part of the environmental fees the consumers pay,” Tolentino told Daily Tribune.

Last August, the Supreme Court slapped both water concessionaires with a total of P921,464,184 in fines and the government-run MWSS was also held jointly liable for violating the Clean Water Act.

A fine of P322,102.00 per day was also assessed for non-compliance with the Clean Water Act, stemming from a case filed by the Department of Environment and Natural Resources (DENR) during the term of former President Gloria Macapagal-Arroyo.

The case stemmed from the failure of Maynilad and Manila Water to put up sewage lines and sewage treatment facilities despite charging millions of households for such service. According to reports, the fines piled up because the law imposes a daily fine for each infraction.

Both Maynilad and Manila Water have filed separate motions for reconsideration before the SC contesting its ruling even as they threatened to pass the penalties imposed against them to the customers.

During his recent speech at the 45th Philippine Business Conference and Expo, Duterte lashed out at the water companies for their failure to build water treatment facilities.

The President did not explicitly name the water companies, but he was apparently referring to Maynilad and Manila Water.

“So, let us not forget the environment. Like these… I am not sure what. I think these guys do not like me and I do not like them… We’ve been paying, the Filipino people, Manila, we have been paying for water treatment fees, which have not been delivered by the water companies,” Mr. Duterte said.

“Up to now, there is no water treatment. The water in the canal, it passes through a nylon mosquito… but there is no water treatment and yet we are paying,” he added.

In an exclusive interview with Daily Tribune, the President had already threatened to terminate the agreements with the private firms. He even suggested that these companies may be committing plunder for collecting fees on services that they are not delivering.

Chief Presidential Legal Counsel and presidential spokesman Salvador Panelo stressed Malacañang will find ways to avert a looming water crisis.

“We will find ways to prevent it from getting serious. If there is a problem, we will find a solution,” Panelo said in a radio interview.

“So, I think those people who are responsible for that will have to do their job,” he added.

The official also assured the public that President Rodrigo Duterte is expected to take the necessary steps to prevent a water crisis from happening.

The President had threatened to fire officials of MWSS and to terminate the concession agreements due to the poor water services.

“All of that will be studied by the President and he will do the necessary steps in order to fulfill his previous statements that there should not be any water crisis in the country,” Panelo said.

When asked if the Chief Executive will summon MWSS and officials of the water concessionaires for another meeting, he said he is still not sure.

They may have problems meeting their obligations to deliver round-the-clock water service to their 14 million customers and to establish sewerage systems, but the concessionaires are definitely not having any difficulties producing profits for their stockholders, Buhay Rep. Lito Atienza added.

“Based on our scrutiny of publicly available financial filings, we’ve gathered that Manila Water Co. and Maynilad Water Services Inc. raked in an aggregate of P138 billion in net profit from 2006 to June 2019,” Atienza, former three-term mayor of Manila, said.

“Both firms also rewarded their shareholders a combined P49 billion in cash dividends over the same period,” he added.

“It has become abundantly clear they’ve been making a lot of money. This is why they have no excuse whatsoever for failing to meet their obligations, including their obligation to put up adequate sewerage networks and wastewater treatment facilities,” he further said.

The solon also disputed the threat made by the water firms that rates could shoot up by 780 percent or by as much P26.70 per cubic meter if they are forced to connect all their customers to a sewage collection, treatment and disposal system, as mandated by Section 8 of the Clean Water Act.

“There’s absolutely no need for them to jack up water rates. They’ve clearly been making a lot of money over the years and some of those profits came from the 20 percent environmental charge and 30 percent sewer charge they’ve been collecting from customers,” Atienza said.

“They should have fully invested the revenue from these charges to build sewerage networks and wastewater treatment facilities, but they clearly chose to do something else with the money,” he stressed.

“In fact, over the years, they’ve invoked their need to provide sewerage networks and wastewater treatment facilities to borrow cheap funding from abroad for ‘green’ projects. We don’t know what they did with the money,” he added.

The Supreme Court in August upheld a 2009 DENR order penalizing the two water suppliers and the MWSS with P1.84 billion in combined fines for violating Section 8 of the Clean Water Act. Atienza himself issued the 2009 order when he was DENR head.