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. The 15-year extension of the concession contract, as indicated in a Memorandum of Understanding and Confirmation, was completed in October 2009 and Manila Water stated that it had been approved by the then President. “We still count, but it will certainly be very high, because the justification for the extension at the time was to mitigate the increase in tariffs,” said Ramoncito Fernandez, president of Maynilad. “… 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. 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 The extension of concession contracts until 2037 was approved by MWSS in 2009 in a board decision. 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. “The Executive Chef will read the letters from Maynilad and Manila Water to the public to ensure transparency and show that all measures taken by the government to resolve this issue with the two Manila water dealers are overboard and legitimate,” he said. Officials from Maynilad and Manila Water said they were willing to sit down with the government to amend the concession agreement. However, due to the revocation, the concession of water companies will end in 2022. It added that the decision to revoke the extension was taken at a meeting of THE MWSS board of directors last Friday, December 5. THE two water suppliers of METRO Manila are awaiting the opening of negotiations with the government after the Ministry of Justice confirmed that President Rodrigo R. Duterte had approved the proposed contract for their water concession. By removing this extension, Cleofas confirmed that new operators could enter after 2022. “Ngayong umaga lang po namin tinanggap `yang Board Resolution (We only received the Resolution of the Board of Directors this morning), but we would like to react with very serious concern that we see this action and we also believe that it is not appropriate to unilaterally revoke the agreement,” Fernandez said. Chris Chuegan, MWSS`s deputy financial regulator administrator, said the concession was likely rebidded or likely to compete with other potential operators.
Meanwhile, Jennifer C. Rufo, Head of Corporate Communications for Maynilad Water Services, Inc., said the western area water concessionaire would first like to see the new conditions. From a legal point of view, the integrated lawyer for Philippine President Domingo Cayosa also stated that the revocation of the board`s decision did not mean revoking the renewal of the contract. 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. The final step came when President Rodrigo Duterte reprimanded the companies for allegedly incriminating provisions in the concession agreement.