MANILA, Philippines— President Rodrigo Duterte has approved the Department of Justice’s recommendation on the terms and conditions for water concessionaires, which include giving the government a say in setting water rates, Justice Secretary Menardo Guevarra said Wednesday.
“In principle, the President has approved our recommendation, so the next step will be to sit down with the two water concessionaires in Metro Manila to discuss the specific terms and conditions of a proposed new water concession agreement with each of them,” Guevarra said at the weekly Kapihan sa Manila Bay.
According to Guevarra, the new water concession agreement, which was presented to the President Tuesday evening, “is more equitable, more transparent and will lessen contingent liabilities on the part of the government plus improving its governance system.”
The President reportedly did not mention any deadline for the concessionaries to finalize and approve the proposed new contact.
When asked about the specific changes made in the agreement, Guevarra said: “The non-interference clause, and its twin provision on indemnification for damages arising from such government interference, will have to go.”
Aside from the onerous provisions, Guevarra earlier said that the DOJ found the extension of these contracts to 2037 irregular, considering that the extension was granted 12-13 years before the original expiration of the 25-year concession agreements in 2022.
The concession agreement took effect in 1997 during the term of President Fidel Ramos and covers a 25-year period, which ends in 2022. President Gloria Macapagal-Arroyo extended the concession agreement for another 15 years in 2009 or until 2037.
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