Water firms don’t need loans–Palace

MANILA, Philippines — Malacañang on Thursday dismissed the concern raised by water concessionaires Maynilad Water Services Inc. and Manila Water Co. Inc. that their services would be affected because banks have stopped lending funds to them.The concessionaires in charge of water distribution in Metro Manila have raked in “billions of profits” in a “colossal ripoff” since 1997, presidential spokesperson Salvador Panelo said.

President Rodrigo Duterte earlier warned the two water firms against rejecting a government deal that would cancel what he said were onerous provisions in the 1997 concession agreement.

If they refuse the deal being crafted by government lawyers, he will cancel the existing contract and nationalize the water distribution system, Mr. Duterte said.

Justice Secretary Menardo Guevarra said it would take six months for the government to consolidate the final draft but the deal would “not kill” the water firms, he assured the public.Panelo said the new agreement would be published once it was transmitted to Maynilad and Manila Water, and when both concessionaires have accepted its terms and conditions.

The Gabriela Women’s Party criticized Mr. Duterte’s “backroom renegotiation” with the two water firms and said consumers, who have shouldered onerous water charges and poor services for a long time, were being “left in the dark” on the reported deal.Gabriela Rep. Arlene Brosas said Malacañang should release a copy of the proposed new contract to dispel doubts that the “backroom talks” come with “backroom benefits.”