The talks between Malacanang
and the two giant water concessionaires Maynilad
Water Services and Manila Water Co. is far from being finished as President
Rodrigo Roa Duterte himself admits that they are having a hard time making a
new contract.
“How can
you now craft a new contract? Because I would insist that you pay the billions
and billions that you collected,” said Duterte in his fifth State of the Nation
Address (SONA).
“For
example, water treatment. O nandiyan sa kontrata. It’s in the billing, they are
being collected since 1997. Ilang bilyon na nga wala ni isa, not even a faucet
was built for a water treatment facility,” he added.
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| President Rodrigo Roa Duterte (photo credit to owner) |
Duterte was talking
about the 10 percent environment fee charged by Maynilad and Manila Water in
their monthly bills since they won the 25-year contract in 1997. The fees were
supposed to be used to build sewerage treatment and sanitation facilities. But
up to now, their consumers in Metro Manila and adjoining provinces of Rizal and
Cavite still use septic tanks connected to their toilets to dispose of their
water wastes.
The Supreme Court in
2018 fined Maynilad and Manila Water P921
million each for violating the Philippine Clean Water Act after failing to
connect all existing sewage lines in establishments and households to an
available sewerage system within the five-year period set by law.
Both firms have appealed the decision of the
Supreme Court.
Last year in
December, the President ordered a review of the contracts of the two giant water
concessionaires after the two demended the payment of P11 billion as against
the Philippine government this is in connection to the latter’s denying their
water hikes.
It was this instance
that President Duterte threatened the with military takeover of their
respective facilities, review of their contracts, and to be charged with
plunder for their billions of worth of environment fee collections.
The MVP and Ayala
companies then both agrees to waive the compensation and review their contracts
to amend the 1997 contracts, including a liability clause which bars the
government from blocking water rate adjustments and forcing it to pay for
losses incurred.
Since then the Chief
executive has received the proposed revisions made by a committee led by the
Department of Justice last June.
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