No more onerous provisions: Panelo says new deal with Maynilad ‘more equitable, fairer’

MANILA – The government’s new concession agreement with water firm Maynilad Water Services, Inc. is “more equitable and fairer,” Chief Presidential Legal Counsel Salvador Panelo said on Saturday.

“‘Yung mga maling probisyon eh binago ho natin. ‘Yung bagong kontrata, mas equitable ito, mas fair, mas makatarungan (The onerous provisions have been removed. The new contract is more equitable, fairer, and more acceptable),” Panelo said during his commentary show “Counterpoint.”

The government and Maynilad signed a new water deal on May 18. The signing came after the government also inked another revised concession agreement with Manila Water on March 31.

Panelo said the signing of the revised concession pacts with Maynilad and Manila Water came following a thorough review made by a government panel led by the Department of Justice (DOJ).

“At ‘yun pong revised concession agreement, talagang ito’y pinadaan sa isang repaso, pagaaral, pagsusuri (The revised concession agreement really underwent a thorough review and study),” he said.

Under the new agreement with Maynilad, the water concessionaire’s capital expenditure projects will rehabilitate and replace old pipelines, install new pipes in unserved areas, and construct new pumping stations, reservoirs and treatment facilities to improve its services to its customers.

With the signing of the water deal, Maynilad is also expected to impose a tariff freeze until Dec. 31, 2022.

Maynilad will also forego the PHP3.4 billion award it won in an arbitration case filed against the Philippine government before the Permanent Court of Arbitration in Singapore.

Panelo said the government revised the water agreements with Maynilad and Manila Water to ensure they would offer better services to consumers.

“Hindi naman pupuwedeng hindi makialam ang gobyerno. Public utility ‘to, public service eh. Kailangan talagang puwedeng mangialam ang gobyerno (The government can intervene because they are a public utility, public service. The government can really intervene),” he said.

Similar to the new agreement with Maynilad, the revised deal with Manila Water requires the public utility to impose a tariff freeze until the end of this year.

The new concession agreement with Manila Water also removes the Foreign Currency Differential Adjustment which will result in much lower tariff increases and protect customers from possible tariff spikes because of foreign exchange movements.

Revisions to the concession deals were reached after President Rodrigo Duterte threatened to revoke the contracts with the two water concessionaires and fire Metropolitan Waterworks and Sewerage System (MWSS) officials.

Duterte subsequently ordered DOJ to review and remove onerous provisions in the deals and discuss proposed revisions to the existing contracts.

On Wednesday, MWSS Chairman and Acting Administrator Reynaldo Velasco said the revised water deal is a “win-win” for all stakeholders. (PNA)

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