Duterte paving the way for allies into the water industry? Nonsense! – Malacañang

MANILA, Philippines – Malacañang vehemently denied alleged reason behind President Rodrigo Duterte’s rants against water concessionaires Maynilad and Manila Water.
Reports alleged that the Chief Executive is making a move to place his allies into the water industry.
“That’s nonsense. Si Presidente pa, walang ally-ally kay Presidente (That’s nonsense. Knowing the President, he doesn’t care for allies),” said Presidential Spokesperson Salvador Panelo.
The President earlier warned to file charges of economic sabotage against the two firms and their cohorts who were behind what he calls as onerous water concession agreements.
Such was his reaction after the Permanent Court of Arbitration in Singapore favored the water concessionaires against the government, ordering it to pay billions for not approving water rate increase under the previous administration.
The Palace scrutinized what seemed to be ‘unfair’ provisions of the water concession agreement including allegations that the government was giving the water concessionaires a cold shoulder and the intent to extend the agreement up to 2037 even prior to the contract’s expiration.
Malacañang opened the idea of a possible government take over only to ensure that water distribution service would not be cut in case none in the private sector intends to handle it.
“Initially government muna then most likely after that there will be biddings for a private company to take over,” Panelo said.
It was in 1997 when the Metropolitan Waterworks and Sewerage System (MWSS) signed water concession contracts with Manila Water Services Inc. and Maynilad.
It was a decision made after the government-owned facility delivered poor services and only a few investors were willing to invest their billions in improving the facility’s services which, Manila Water and Maynilad accepted through a bidding. MNP (with details from Rosalie Coz)