Gov’t completes renegotiation of water concession deal with Manila Water — Palace

MANILA, Philippines — The government’s renegotiation of the concession agreement with Manila Water Corp. has been completed, Malacañang said Monday.

In an online Palace briefing, presidential spokesperson Harry Roque said the revised concession deal is now “advantageous” to both the government and the consumers.

“Matapos po ang isang taon, kinukumpirma po natin na natapos na po ang renegosasyon ng 1997 MWSS [Metropolitan Waterworks and Sewerage System] concession agreement kasama ang Manila Water Corporation. At ang susunod naman po ay ang Maynilad,” Roque said.

(After a year, we confirm that the renegotiation of the 1997 MWSS concession agreement with Manila Water Corporation has been completed. Next will be with Maynilad.)

“Isang revised concession ang nabuo na nagbibigay ng mas magandang serbisyo ng tubig sa Metro Manila at advantageous sa pamahalaan at consumers,” he added.

(A revised concession was crafted which gives better water service in Metro Manila and is advantageous to government and consumers.)

Roque said among the salient points of the new deal is the removal of government non-interference clauses and recognition of Manila Water as a public utility “which makes it more accountable to the government and the public.”

Under the revised deal, Roque also said the Corporate Income Tax can no longer be charged to the consumer unlike the previous concession agreement.

“Dati nga po kaya po nagalit si Presidente, dati po kumita na nga, ayaw pa magbayad ng tax. Ngayon po, magbabayad na sila ng tax,” Roque said.

(The President got angry before because even if they earned money, they don’t want to pay taxes. Now, they have to pay it.)

The new deal also set a tariff freeze until December 31, 2022, to assist consumers amid the COVID-19 pandemic.

“Ang next na possible adjustment sa ating water rates will happen in 2023,” Justice Secretary Menardo Guevarra said in the same briefing.

Guevarra added that negotiations with Manyilad will “start immediately” where the same terms and conditions under the agreement with Manila Water will be proposed.

President Rodrigo Duterte previously slammed Manila Water and Maynilad for supposedly milking billions from the people and the government over the disadvantageous 1997 water contract.

The President had threatened to sue the water firms due to the “onerous” provisions of its contract with the government.

JE