MANILA, Philippines — The government is now looking at renegotiating its concession agreements with Manila Water Company, Inc. and Maynilad Water Services, Inc. after its regulatory office revoked the 15-year extension of the deals with the private water firms.
The agreements were originally set to expire in 2022 but it was extended until 2037 by the Arroyo administration.
On President Rodrigo Duterte’s order, the Metropolitan Waterworks and Sewerage System (MWSS) has nullified the extension. This means that the original period of expiration of the water concession deals in 2022 will push through.
At the hearing of the Senate committee on public services on Wednesday, Senator Grace Poe asked what would happen now that the extension had been revoked.
“With that Ma’am, consistent to the instruction of the President, that will pave the way for renegotiation with the concessionaires,” MWSS Administrator Emmanuel Salamat said.
“You can assure that there won’t be any interruption in service?” Poe asked again.
And the senator got the assurance from the MWSS official that the cancellation of the extension would not in any way disrupt the water supply service.
Poe later inquired about the basis of the government’s decision to cancel the water concession deals.
“It’s consistent with the instruction of the President,” Salamat quickly said.
He added that their decision was also consistent with the findings of the Department of Justice that the extension has no legal basis.