Cancellation of deal extension no reason to raise water rate

The decision of the Metropolitan Waterworks and Sewerage System (MWSS) to cancel the extension of contracts of water concessionaires should not be a reason to increase water rates, Senator Christopher Lawrence “Bong” Go said Thursday.

MWSS, the government agency in charge of water privatization in Metro Manila, revoked on 5 December a board resolution that extended the contracts of Maynilad and Manila Water until 2037.

The 25-year concession agreements were signed in 1997 and were to expire in 2022. In 2009, MWSS decided to extend the contract with Manila Water for 15 years more. The following year, Maynilad’s was similarly extended for another 15.

“Huwag ninyong gawing dahilan ‘yang pagkansela ng concession agreement para itaas ang water (rate),” said Go, addressing the officials of both concessionaires.

“Nangako sila sa ating Pangulo na hindi na sila sisingil doon sa arbitral ruling at ni-waive na raw nila. Hindi sila mag-i-increase sa January. So bakit ninyo tinatakot ang Pangulo at ang taongbayan na tataas kayo ng singil dahil po sa pagkansela?”

The companies drew the ire of President Rodrigo Duterte when a water shortage occurred in March and when the Permanent Court of Arbitration (PCA) in Singapore ordered the Philippine government in November to pay ₱7.39 billion to Manila Water for the company’s alleged losses due to the government’s decisions to stop water price hikes.

Since November, regular water interruptions are being implemented anew, citing inadequate dam supply. The companies have not indicated when regular supply will resume.

In a similar case in 2016, the PCA ordered the Philippine government to pay Maynilad P3.4 billion.

The President lashed out anew against the companies in a speech on 9 December. He threatened to charge their officials with economic sabotage and ordered the relevant government agencies to revise the “onerous” agreements.

In response, Maynilad and Manila Water decided to waive the awards by the PCA and cancel the rate increases scheduled for implementation in January 2020.

However, when MWSS informed the two companies on Wednesday of its decision to cancel its board resolution extending the contracts, an official of Manila Water hinted at the hearing of the House of Representatives of a possible water rate hike in order to recoup its investments within the shortened period.

Go said the companies must instead focus first on meeting their obligations.

“Di po makakatulong ‘yung takutin ang taongbayan. Ayusin niyo muna ang serbisyo ninyo. ‘Yun po ang inaantay ng mga mamamayan natin—maayos na serbisyo, walang water shortage, walang water interruption,” said Go.

The President wants clear answers regarding the original agreements, said Go.

“Interesado rin po ang Pangulo kung bakit nakalusot noong unang panahon ‘yung kontratang nilagdaan, ‘yung concessionaires agreement na hindi naman po pabor sa Pilipino,” said Go.

“Gusto naming nakalagay sa kontrata na interes ng bawat Pilipino ang mangunguna dahil kung gaano kaimportante ang tubig sa kanila, ganoon din po kaimportante sa kanila ang bawat pisong pinagpawisan nila na ibinabayad po diyan sa tubig.”