Manila Water: Arbitral award issued for acts in breach by ‘previous admins’

MANILA, Philippines — “The arbitral award issued in our favor is for acts in breach of the procedure committed by officials of the previous administration, not the Duterte administration.”

Manila Water Co. Inc. said this Wednesday following the Permanent Court of Arbitration in Singapore’s order for the Philippine government to pay the water concessionaire P7.4 billion for losses and damages.

President Rodrigo Duterte on Tuesday night then threatened to file a case of economic sabotage against Manila Water as well as Maynilad Water Services.

In a statement, Manila Water said its chairman, Fernando Zobel de Ayala, and other senior officers of the company met with Finance Secretary Carlos Dominguez to discuss the matter upon the receipt of the information regarding the award.

The said meeting happened even before the arbitral award was publicized, Manila Water said.

“We informed him that we are willing to come up with a mutually acceptable manner of implementation of the arbitral award considering that this case was filed due to a violation incurred not during this administration,” Manila Water said.

“Secretary Dominguez acknowledged our proposal to work very closely with his office to find a mutually acceptable scheme to address the award,” it added.

Manila Water said that they are “more than willing” to work with the Duterte administration to come up with a “workable solution” to address the arbitration decision.

The 1997 agreement 

Manila Water said the Philippine government solicited bids for concession agreements with the Metropolitan Waterworks and Sewerage System (MWSS) “to address the water crisis in Metro Manila that existed due to the incapability of the MWSS to maintain viable operations due to technical inefficiencies and enormous financial debts.”

“The Government unilaterally determined the terms of the agreements, which were bidden out on a take it or leave it basis,” Manila Water said.

After offering the lowest fee to serve as concessionaire of MWSS, Manila Water was awarded the concession agreement for East Zone.

Manila Water said MWSS “decided to pay the fee with the water tariff to be collected by the concessionaire.”

“Because MWSS decided to pay our services and reimburse our costs with the water tariff that we collect, the Concession Agreement contains a procedure for the adjustment of water rates in accordance with the MWSS Charter,” Manila Water said.

“The Republic of the Philippines undertook to respect the procedure, which is under the full control of MWSS from beginning to end,” it added.

However, Manila Water said officials of the previous administration committed acts in breach of the procedures, which lead to the arbitral award.

During the Cabinet meeting on Monday, the Department of Justice  (DOJ) reported that the government contracts with Manila Water and Maynilad were disadvantageous for both the government and water consumers.

“I will file this, economic sabotage, and I will arrest them all. I will let them taste of a prisoner’s life,” Duterte said, speaking partly in Filipino.

INQUIRER.net has contacted Maynilad for a comment on the issue but has yet to receive a reply as of posting time.