FILE CLEAN WATER FOR EVERYONE A barangay public safety officer checks leaks on pipes and water meters in Philcoa, Quezon City on Wednesday, December 11, 2019. The Metropolitan Waterworks and Sewerage System (MWSS) revoked the extension of the concession agreement with companies Manila Water and Maynilad Water Services after the two water concessionaires waived billions of pesos in claims. INQUIRER PHOTO / GRIG C. MONTEGRANDE
MANILA, Philippines — President Rodrigo Duterte recently signed laws granting 25-year franchises to Maynilad Water Services Inc. and Manila Water Company, Inc.
Duterte signed the franchise laws on December 10 last year, labeled Republic Act No. 11600 and Republic Act No. 11601, copies of which were released to the media on Friday.
Maynilad is currently servicing the west zone of Metro Manila and Cavite while Manila Water is servicing the east zone of Metro Manila and Rizal.
The laws granted the two water concessionaires franchises to “establish, operate, and maintain, for commercial purposes and in the public interest, a waterworks system to ensure an uninterrupted and adequate supply, and distribution of potable water for domestic, commercial, and other purposes, and for the establishment and maintenance of sewerage system and sanitation services” in their respective areas.
“The grantee shall ensure adequate protection of consumer interests. The grantee shall act with dispatch on all complaints brought before it,” the laws said.
Under the laws, the two grantees are required to ensure that service interruptions are “minimal” and shall observe the standards imposed by the regulatory office—in this case, the Metropolitan Waterworks and Sewerage System (MWSS).
“The grantee, its successors or assignees, shall conform to the ethics of honest enterprise and shall provide water supply and sewerage services to its service area in a prudent, efficient, and satisfactory manner,” the laws also stated.
Further, Maynilad and Manila Water are mandated to submit to the MWSS a “completion plan for the establishment and operation of water, sewerage and sanitation projects” covering a period until 2037.
The plan, according to the laws, should include “periodic five-year completion targets with the end goal of achieveing” 100-percent water, sewerage and sanitation coverage by 2037.
Under the laws, the franchise given to the two water concessionaires shall be valid for 25 years “unless sooner cancelled or revoked by Congress when public interest so requires or when the grantee fails to reasonably comply with regulatory standards.”
“This franchise shall be deemed ipso facto revoked in the event the grantee fails to operate continuously for two years, or in case of default, as provided for in the grantee’s Concession Agreement,” the laws stated.
The laws also require the two firms to “hold the national, provincial, city, and municipal governments of the Philippines free from all claims, liabilities, demands, or actions arising from accidents causing injury to persons or damage to properties, during the construction or operation of the waterworks and sewerage system facilities of the grantee.”
The laws further contain a provision on the commitment of the grantees to provide and promote the creation of employment opportunities.
The grantees are required to “create employment opportunities and accept on-the-job trainees in its franchise operations,” provided that “priority shall be accorded to the residents of the place where the grantee holds office or operates.”
Further, the grantees “shall comply with the applicable labor standards and allowance entitlement under existing labor laws, rules and regulations, and similar issuances.”
Maynilad and Manila Water are mandated under the laws to submit to Congress an annual report on their compliance with the terms and condition of their franchise and on their operations on or before April 30 of every year during the term of their franchises.
“Failure to submit the requisite annual report to Congress shall be penalized by a fine of [P1 million] for each working day of noncompliance,” according to the laws.
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