The House of Representatives committees on good governance and public accounts and public accounts resume the hearing on Metro Manila`s hydraulic concessions. @rapplerdotcom pic.twitter.com/YAmtRKWopZ – Mara Cepeda (@maracepeda) December 11, 2019 ” … MWSS Foundation Board Decision 2019-201-CO revoked the previous decision of the Foundation Board No. 2009-072-CO. The MWSS Board of Trustees Resolution No. 2019-201-CO does not revoke the renewal of our concession contract with LEMSS from 2022 to 2037,” said Manila Water. In a statement to the Philippine Stock Exchange on Wednesday, Manila Water Company, Inc. said they received a letter from the Metropolitan Waterworks and Sewerage System (MWSS) informing the company that the Council of Regulators is revusing a resolution on the renewal of the concession agreement. However, Manila Water said the contact extension was in place.
Metro Manila (CNN Philippines, December 13) – Metro Manila Water Dealers can still provide services after 2022, the area is Manila Water dealership said. The concession agreement between two equal parties, Metropolitan Waterworks and Sewerage System (MWSS) and Manila Water, is the structure and framework on which a private partner has been able to clean up and develop water and sanitation services in metro Manila`s east end. In 2009, in response to the Supreme Court`s mandamus for the rehabilitation of Manila Bay, which effectively redefined the water supply development objectives, the concession system extended the concession agreement by 15 years to ensure the affordability of sanitation services through a longer period of full cost coverage. A renegotiation of manila Water`s contract, in particular its 15-year extension until 2037, began after outbreaks by President Duterte. MANILA, Philippines – The Metropolitan Waterworks and Sewerage System (MWSS) has revoked the renewal of the concession agreement with Maynilad Water Services and Manila Water. [I assume that the administration expresses its feelings towards the terms of the concession agreement in this way.] In early November, the two water dealers decided to forego their water price increases for 2021 as part of the adaptation of the tariff reference system approved by the Metropolitan Waterworks and Sewerage System (MWSS) as an aid to their customers. During the hearing, it was indicated that it would always be the private sector that would take over the water supply companies, as Cleofas said, that MWSS employed very few staff. Both dealers had previously said they were open to a review of the concession agreement, but President Rodrigo Duterte opposed it. The water dealers declined to comment. THE MWSS Board of Directors met on Friday.
Manila Water announced in February a subscription contract with the Razon Group, whereby the latter, as a strategic investor, acquired a 25% stake in the company for 10.7 billion P. In addition, Manila Water stated that it had begun discussions with the regulator on the provisions of the concession agreement that were defined for renegotiations and amendments. At the end of 2019, the Philippine President issued public statements questioning the 1997 MWSS concession agreement, asserting the existence of incriminating provisions detrimental to the government and the people and indicating the intention to impose a new agreement with the dealers. As a result, MWSS`s Board of Directors had to revoke its 2009 decision to renew the concession contract for a period of 15 years. With the help of the International Finance Corporation and after studying the various public-private partnership models for water services around the world, the Philippine government developed a contract that it said contained the best arrangements to improve the extension and provision of water-related services, efficiency and affordable services, while ensuring the viability of an operating and financing model for potential private bidders.