Manila Water seeks overturn of P2B fine ruling

The water firm pointed out that even Congress recognizes the “immensity” of the task to provide complete and centralized sewerage system under the Clean Water Act. #ManilaWaterfine

Manila Water has asked the Supreme Court to reverse its decision directing the company and Maynilad Water Services to pay a fine amounting to almost P2 billion for violation of the provisions of Republic Act 9275 or the Philippine Clean Water Act.

In a 55-page motion for reconsideration, the Manila Water, through lawyer Alejandro Alfonso Navarro, said the Court may also consider remanding or referring to the Court of Appeals or the Office of the Secretary of Environment and Natural Resources or any appropriate government agency the case for a determination of factual issues, their liabilities and correct fines to be imposed.

In their petition the water firm argued that contrary to the findings of the Court, the petitioner complied with the provisions of Section 8 of the Clear Water Act (CWA).

The Court in August affirmed the Court of Appeals’ ruling which found Metropolitan Waterworks and Sewerage System, Maynilad and Manila Water liable for violation of Section 8 of the Philippine Clean Water Act.

MWSS and the two concessionaires were to provide wastewater treatment facilities and to connect sewage lines in all establishments, including households, to an available sewerage system within five years upon the effectivity of R.A. 9275 on 6 March 2004.

But, Manila Water insisted that under Section 8 of the Clean Water Act, it’s obligation is simply to connect sewage lines existing at the time of the effectivity of the law to then-available sewerage systems within five years from the law’s effectivity on 6 March 2004.

The petitioner said the SC decision interprets Section 8 of the Clean Water Act to mean that it must unconditionally comply with all its obligations under the concession agreement within five years from the law’s effectivity.

“In other words, the Decision folded-in the 40-year period for petitioner Manila Water to comply with its obligations under the Concession Agreement to a mere five years, when the said period under Section 8 of the Clean Water Act was only intended for the interconnection of sewage lines to sewerage systems existing and available in 2004,” it noted.

The water firm pointed out that even Congress recognizes the “immensity” of the task to provide complete and centralized sewerage system under the Clean Water Act, by mandating not one but several government agencies to implement its provisions, namely, the Department of Enviroment and Natural Resources, Department of Public Works and Highways, and various local government units.

“Therefore, the only reasonable conclusion is that petitioner Manila Water, as a private entity, cannot be required to assume obligations beyond those set forth in its Concession Agreement. To require petitioner Manila Water do so will not only violate the principles of non-impairment of contracts but will also undeniably constitute arbitrary exercise of police power, contrary to the established tenets of due process.,” the water concessionaire said.

The Manila Water also warned that the accelerated establishment of a complete centralized sewerage system is expected to cause huge increase in water prices by P26.70 per cubic meter or 780.18 percent increase in current water rates.

“This exponential increase in water prices will eat into the already meager savings of the average Filipino household in Metro Manila (which stands at P6,333.34 per 2015 survey of the Philippine Statistics Authority). The situation paints an even dire picture if one is to consider the hefty fuel price hikes of recent days, the inflation which is projected to lie somewhere between 0.6 to 1.4 percent for September, and the current uptrend of the consumer price index…,” the statement added.

The Court said that as of 31 December 2018, Manila Water has reportedly spent a total of P38.5 billion for wastewater projects, higher than the P36.9 billion collected in sewer charges.

The concession agreement stated the Manila Water is allowed to recover operating, capital maintenance and investment expenditures efficiently and prudently incurred from its customers.