Malacañang identifies key features in new gov`t deal with Manila Water

Marje Pelayo   •   April 6, 2021   •   282

MANILA, Philippines – Malacañang  bared the key features of the new concession deal with Manila Water and Metropolitan Waterworks and Sewerage System (MWSS).

In particular, the agreement states the removal of government non-interference clauses which means the government will no longer be liable when fulfilling its regulatory functions to protect the consumer.

The deal also recognizes Manila Water as a public utility which makes it more accountable to the government and the public.

Provisions which unduly compromise medium and long term government liabilities have been also removed.

The Palace reiterates that the newly signed agreement is advantageous to the consumer such as the provision that corporate income tax cannot be charged to the consumer.

Tariff freeze will also be effective until December 1, 2022.

Also, the tariff adjustment for inflation will only be two-thirds of the consumer price index and the foreign currency differential adjustment has been removed.

“Dahil po dito sa bagong concession agreement, revised concession agreement sa Manila Water, protektado na po ang gobyerno at ang ating mga consumers,” said Presidential Spokesperson Harry Roque.

Meanwhile, the government will also renegotiate with another water concessionaire giant or Maynilad Water Services for a new concession deal.

President Rodrigo Duterte ordered the Department of Justice (DOJ) in 2019 to review the 1997 water concession agreements following the water crisis.

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Manila Water announces extension of water interruption in several barangays in Metro Manila

Aileen Cerrudo   •   April 12, 2021

 

MANILA, Philippines—The Manila Water on Monday (April 12) announced that the water service interruption in several barangays in Metro Manila will be extended.

The extension of service interruption is due to difficult conditions on the site of Manila Water’s damaged mainline at EDSA/Boni Ave. northbound.

Affected barangays will have no water service from 5:00 in the afternoon of Monday until 4:00 a.m. on Tuesday (April 13) as the company completes its permanent repair of the breakage.

The 600-mm mainline was damaged on Sunday evening (April 11), which resulted in a water service interruption to more than 30 barangays in Mandaluyong, Pasig, San Juan, and Quezon City.

The breakage, the Manila Water reported, was caused by AWIN Technology, a third-party contractor doing CCTV network installation.

Affected barangays:

MANDALUYONG CITY (16):
Highway Hills
Barangka Ilaya
Barangka Itaas
Malamig
Addition Hills
Greenhills
Wack-Wack East Greenhills
Mauway
Barangka Drive
Barangka Ibaba
Pleasant Hills
Plainview
Hulo
Hagdang Bato Itaas
Hagdang Bato Libis
San Jose

SAN JUAN CITY (12):
Addition Hills
Corazon de Jesus
West Crame
Pasadena
Onse
Halo-Halo (St. Joseph)
Maytunas
Santa Lucia
St. Joseph
Isabelita
Little Baguio
Valencia

QUEZON CITY (6):
Kaunlaran
San Martin de Porres
Bagong Lipunan ng Crame
Pinagkaisahan
Horseshoe
Immaculate Concepcion

PASIG CITY (1):
Oranbo

“Customers in these areas are encouraged to store just enough water for their needs within the water interruption schedule. This will also help avoid crowding around water tankers,” the Manila Water said in an advisory.

“While we apologize for the inconvenience these have caused thousands of our customers, we are working non-stop to restore water service as soon as possible,” Manila Water’s Group Head for Corporate Strategic Affairs Jeric Sevilla said. -AAC

Maynilad, Manila Water to extend no disconnection policy until end of MECQ in NCR Plus

Robie de Guzman   •   April 12, 2021

MANILA, Philippines – Water concessionaires Maynilad Water Services Inc. and Manila Water Company Inc. will extend the implementation of their no disconnection policy until the end of the modified enhanced community quarantine (MECQ), the Metropolitan Waterworks and Sewerage System (MWSS) on Monday said.

“This is to inform the public that the MWSS Regulatory Office (RO) has directed Manila Water Company, Inc. and Maynilad Water Services, Inc., to extend their suspension of all service disconnection activities (whether temporary or permanent) until such time that the modified enhanced community quarantine (MECQ) has been lifted,” MWSS chief regulator Patrick Lester Ty said in a statement.

Metro Manila and the nearby provinces of Cavite, Bulacan, Rizal, and Laguna have been placed under modified enhanced community quarantine (MECQ) from April 12 to April 30.

Water concessionaires are also directed to provide an uninterrupted 24-hour water supply in their service areas.

“This is to ensure that all customers receive clean and adequate water supply for their health and sanitation requirements, especially during this difficult time of the pandemic,” Ty said.

Meanwhile, the MWSS RO asked concerned local government units to assist water concessionaires as they conduct their meter reading and billing activities during the period of MECQ.

Manila Water, Maynilad to adjust rates starting April 1 – MWSS

Robie de Guzman   •   March 11, 2021

MANILA, Philippines – Customers of Manila Water Company Inc. will have to shell out more money to pay for the higher water bills, while those of Maynilad Water Services Inc. will expect lower bills in the second quarter of 2021, the Metropolitan Waterworks and Sewerage System (MWSS) announced on Thursday.

In an advisory, MWSS chief regulator Patrick Ty said the MWSS Board of Trustees has approved the recommendation of the regulatory office (RO) to implement the 2021 second quarter foreign currency differential adjustment (FCDA) effective April 1, based on its evaluation of the FCDA proposals of the concessionaires.

The FCDA is a quarterly-reviewed tariff mechanism that allows concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans that are used to fund the expansion and improvement of water and sewerage services.

It is a corrective mechanism formulated by the MWSS RO to avoid under-recovery or over-recovery caused by forex movements.

The MWSS said Manila Water, which services the east zone concession area, will implement an FCDA 0.84% or P0.24 per cubic meter of its 2021 Average Basic Charge of P28.52 per cubic meter.

“This is an upward adjustment of P0.05 per cubic meter from the previous FCDA of P0.19 per cubic meter,” the agency said.

West Zone concessionaire Maynilad, meanwhile, will apply an FCDA of negative 0.41% or negative P0.15 per cubic meter of its 2021 Average Basic Charge of P36.24 per cubic meter.

“This is a downward adjustment of P0.01 per cubic meter from the previous FCDA of negative P0.14 per cubic meter,” the MWSS said.

Ty explained that Manila Water’s FCDA increased as significant portions of the loans of Manila Water are in Japanese yen and in euros which appreciated against the Philippine peso.

On the other hand, the majority of Maynilad’s loans payable for this quarter are in US dollars. Ty noted that the peso appreciated against the US dollar which caused the rollback of P0.01 per cubic meter.

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