The Good news is
that both water giant Maynilad and Manila Water would no longer pursue the
P10.8B arbitral award from the Philippine government.
This is
something President Rodrigo Roa Duterte did not want to pay anyway, since he
has called the water concession agreement between the government and the two
firms being onerous.
But what made
the two firms think otherwise and heed the call of President Duterte? It’s the
fear of being seized by government.
The President made the a threat that both Manila Water Company and Maynilad Water Services would be taken over by government, for reasons that the firms have an “onerous” 1997 water concession agreement they entered with the government.
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| President Rodrigo Roa Duterte (photo credit to owner) |
The President made the a threat that both Manila Water Company and Maynilad Water Services would be taken over by government, for reasons that the firms have an “onerous” 1997 water concession agreement they entered with the government.
“I will
expropriate everything. I will seize everything. File charges until you want.
Anyway, I will be out in two years,” Duterte said in Malacanang during his
speech for the oathtalking of newly appointed government officials.
The Chief
Executive also instructed the filing of economic sabotage charges against those
involved in the government’s water concession agreements with the two giant
firms, which to the detriment of the former.
“I will feel the pulse of the people,” he said.
“If they say, ‘Mayor, go after them,’ then I’ll
file an economic sabotage case. My case is airtight. If you evaluate the
[expletive] contract with the anti-graft law, it is a mirror of the Anti-Graft
and Corrupt Practices Law,” he added.
It might be recalled that the Singapore based Permanent
Court of Arbitration ordered the Philippine government to pay the two firms for
a the amount of P3.6 billion to Maynilad and in November to compensate P7
billion to Manila Water for losses suffered by the water firms due to
disallowed water rate increases from 2013 to 2017.
The water concession agreements were signed in 1997 during the Ramos administration and extended in 2009 through the Arroyo administration until 2037 – long before their expiration in 2022.
The agreement was for 25 years.
The water concession agreements were signed in 1997 during the Ramos administration and extended in 2009 through the Arroyo administration until 2037 – long before their expiration in 2022.
The agreement was for 25 years.
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Report from PDI
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