Palace: Gov’t won’t pay over P10B compensation to Manila Water, Maynilad

MANILA, Philippines — The government will not pay the over P10-billion compensation for water concessionaires Manila Water Co. and Maynilad Water Services Inc. as ordered by the Singapore arbitration, Malacañang said Thursday, stressing that the court decision stemmed from an “onerous” deal with the private firms.

Asked in an interview over DZXL if the government would pay the compensation, Panelo said: “Hindi, kasi nga onerous ‘yung kontrata eh, masyadong disadvantageous sa gobyerno.” (No, because the deal is onerous. It’s really disadvantageous for the government.)

The Permanent Court of Arbitration in Singapore has ordered the Philippine government to pay the Ayala-owned Manila Water P7.39 billion to compensate it for losses suffered between June 2015 to November 2019. Last year, the government was also ordered to pay the Manny V. Pangilinan-led Maynilad P3.4 billion by the same Singaporean court due to the Philippines’ refusal to allow it to increase prices from 2013 to 2017.

But President Rodrigo Duterte has slammed the owners of Manila Water and Maynilad for allegedly milking billions from the people and the government over disadvantageous 1997 water contracts. He also ordered agencies to draft new utility contracts acceptable to the government.

Maynilad and Manila Water distribute water in Metro Manila and nearby provinces under agreements signed with the Metropolitan Waterworks and Sewerage System (MWSS) during the Ramos administration.

The Department of Justice (DOJ), however, has reviewed the deal and found out that a dozen of “onerous” provisions were stipulated in it.

Panelo said the President can revoke the deal as it is detrimental to the public.

Edited by KGA