“The Tribunal ruled that Manila Water has a right to indemnification for actual losses suffered by it on account of the (government’s) breach of its obligation,” MWC said. #ManilaWater #PermanentCourtOfArbitration

The Philippine government may have to pay P7.39 billion to water concessionaire Manila Water Co. Inc (MWC) for losses incurred due to the non-implementation of rate hikes.

In a disclosure to the Philippine Stock Exchange (PSE) on Friday, the Ayala-led water firm said the Permanent Court of Arbitration (PCA) in Singapore ruled that the government must indemnify the company P7.39 billion for the losses.

“The Tribunal ruled that Manila Water has a right to indemnification for actual losses suffered by it on account of the (government’s) breach of its obligation,” MWC said.

The eastern Metro Manila water service provider said it suffered the losses from 1 June 2015 until 22 November 2019.

This was the period that water regulators did not implement water rate hikes that were supposed to be implemented in the previous rate rebasing period.

Moreover, the Tribunal also ordered the government to pay 100 percent of the amounts paid by MWC to the PCA and 85 percent of the company’s other claimed costs.

MWC said it will work with the government “for an orderly and managed satisfaction of the Award.”

Previously, the tribunal also ruled on a similar case filed by Pangilinan-led water firm Maynilad Water Services.

The Metropolitan Waterworks and Sewerage System Regulatory Office refused to comment on the issue as it was against the national government and not the MWSS.

The water firm decided to sue the Philippine government before the PCA after MWSS won a case against it in 2015.