Maynilad and Manila Water are heeding the call of the President and are willing to revisit the concession agreements for amendments. #Maynilad #ManilaWater

Manuel V. Pangilinan (left) and Fernando Zobel de Ayala.

Metro Manila water concessionaires Maynilad and of Manila Water are setting aside their combined P10.8 billion damage claims against the government awarded by the Permanent Court of Arbitration (PCA) in Singapore and deferring their increase in water charges.

In a letter to President Rodrigo Duterte dated Tuesday, 10 December 2019, Manila Water stated it will no longer pursue its P7.39 billion claims against the government and defer its water rate increase. The letter is signed by Manuel V. Pangilinan, chairman of the Metro Pacific Investments Corp. which owns Manila Water.

In the letter from Maynilad signed by Fernando Zobel de Ayala, president and COO of Ayala Corp. which owns the water concessionaire, the company waives the PCA award.

Maynilad President and Chief Executive Officer Ramoncito Fernandez also said in a legislative hearing that they will no longer pursue its P3.4 billion arbitral award against the government.

The PCA awarded the indemnity to Manila Water and Maynilad after the government disallowed their water rate increases that allegedly resulted to huge losses by the two firms.

“The separate letters of Maynilad and Manila Water basically state that they are heeding the call of the President and are willing to revisit the concession agreements for amendments or revisions of the provisions which are onerous to the government and ultimately, their consumers,” Presidential Spokesman Salvador Panelo said in a statement issued Wednesday.

“The Filipino people have just been protected from paying a total amount of at least P10.8 billion, an obligation which has no legal basis, to private entities. These companies not only have inefficiently delivered water to the households but exacted unconscionable amounts from the taxpayers,” Panelo added.

“Once again, the President exercising political will, coupled with his ability to ascertain inequities in contract law as well as his character to identify with the plight of the ordinary Filipinos, has protected their interest, in obedience to the constitutional command to serve and protect the people,” said Panelo.

“The President will evaluate this development, as well as study the practical and legal consequences of the situation, before making any decision on what measure to undertake next. PRRD wants to speak first with all the lawyers involved in the preparation, negotiation and drafting of the present concession agreements and determine the reason why they allowed the incorporation of onerous provisions,” he said.

Meanwhile, Panelo said Duterte will read the letters of Maynilad and Manila Water before the public for transparency and to show that all the steps being undertaken by the government in resolving this issue with the two Metro Manila water concessionaires are aboveboard and legitimate.