New water agreement with Manila Water ‘advantageous’ to gov’t, consumers: Palace

By Prince Golez

Malacañang on Monday said the government’s renegotiation of concession agreement with Manila Water Company, Inc. has been completed.

The revised agreement with Manila Water was “advantageous” to the national government and water consumers, according to Spokesman Harry Roque.

“Isang revised concession agreement ang nabuo na nagbibigay ng mas magandang serbisyo ng tubig sa Metro Manila at advantageous sa pamahalaan at consumers. Patunay ito ang interes ng mga Pilipino ang nasa isip at puso ng ating Presidente,” Roque said in a televised briefing.

The new contract include the following provisions:

• Removal of government non-interference clauses
• Recognition of Manila Water as a public utility
• Removal and addition of provisions that unduly compromise medium and long term government liabilities
• Corporate Income Tax cannot be charged to the consumer
• There is a Tariff Freeze until December 31, 2022
• The tariff adjustment for inflation will only be 2/3 of the Consumer Price Index unlike the previous contract which had a 100% inflationary impact
• Removal of the Foreign Currency Differential Adjustment which will result in the much lower tariff increases and protect the consumer from possible tariff spikes because of foreign exchange movements

“Kampante po kami na dahil dito sa revised concession agreement sa Manila Water eh protektado na po ang gobyerno at ang ating mga consumers. Susunod pong magkakaroon ng renegosasyon ang Maynilad Water (Services, Inc.),” said Roque.

Source: Latest Politics News Today (Politics.com.ph)