The Tribunal ruled that Manila Water has a right to indemnification for its actual losses on account of the government’s breach of its obligation.
The Philippine government may have to pay billions to water concessionaire Manila Water Co. Inc (MWC) for losses incurred due to 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 losses after it failed to implement rate hikes.
“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 east concessionaire said the indemnity covers losses MWC suffered from 1 June 2015 until 22 November 2019.
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This was the period when water regulators did not implement water rate hikes that were supposed to have taken effect 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 Daily Tribune reached out to the Metropolitan Waterworks and Sewerage System Regulatory Office, which approves or rejects water rate adjustments, for clarification but there was no response as of press time.
