Cavite Rep. Elpidio Barzaga. FILE PHOTO
MANILA, Philippines — The House of Representatives is urged to conduct an inquiry into the ruling of the Permanent Court of Arbitration in Singapore saying that the Philippine government has to pay Manila Water Co. P7.39 billion for losses incurred due to the non-implementation of rate hikes.
Cavite 4th District Rep. Elpidio Barzaga Jr. has filed House Resolution No. 572 directing the appropriate House committee to investigate the arbitration ruling, as well as the concession agreements of Manila Water and Maynilad Services Inc.
This is in light of President Rodrigo Duterte’s recent pronouncements threatening the water firms of economic sabotage over their alleged “onerous” concession agreements with the Metropolitan Waterworks and Sewerage System (MWSS).
In filing the resolution, Barzaga pointed out that while the P7.39 billion was for the supposed loss suffered by Manila Water from June 1, 2015 to November 22, 2019, the firm posed a gross income of P6.5 billion, which is a net income increase of 6 percent from the previous year.
He also noted that the P7.39 billion comes after the country went through a recent water shortage that affected tens of thousands of Filipinos in Metro Manila.
Aside from this, Barzaga said that both Manila Water and Maynilad still have to pay for a Supreme Court ruling when it was fined worth nearly P1 billion for violating the Philippine Clean Water Act when it failed to put up sewerage systems in their service areas 10 years ago.
The two firms have also been penalized by the MWSS for service interruptions in their respective markets earlier this year, he added.
“It is clear to every Filipino that Manila Water and Maynilad have failed to deliver efficient water services. Unfortunately, despite Manila Water’s dismal performance in its Manila concession, it has won 11 new projects in 2018 through its Manila Water Philippine Ventures,” Barzaga said in the resolution.
Manila Water and Maynilad distribute water in Metro Manila and parts of Cavite and Rizal provinces under agreements signed with the MWSS in 1997 during the Ramos administration following what was then called “the world’s largest water privatization.”
During Monday night’s Cabinet meeting, the Department of Justice (DOJ) reported to Duterte that it had found out that the government contracts with Manila Water and Maynilad were disadvantageous not only to the government but more so to water consumers.
For this, the President also ordered Solicitor General Jose Calida and Finance Secretary Carlos Dominguez III to come up with a new water concession contract that is favorable to the public and the government.