Manila Water slapped with P1-B fine for supply shortage

Robie de Guzman   •   April 24, 2019   •   1832

MANILA, Philippines — The Manila Water Co. Inc. is facing fines amounting to P1.5 billion in connection with the supply shortage being experienced in the east zone concession.

The Metropolitan Waterworks Sewerage System (MWSS) said in a statement that penalties include P500 million for customers’ refund, P600 million for the company to develop a new water source, and the remaining fine is for failing to meet service requirements.

The sanctions are on top of the voluntary full bill waiver imposed by the Manila Water, which it said earlier would cost the company nearly P500 million.

In a separate statement, Manila Water assured it will abide by the sanctions imposed by the MWSS.

“While we are not the root cause for the inadequacy of the raw water supply coming from Angat Dam which we are mandated to treat and distribute, Manila Water, as agent and contractor of water services of MWSS, hold ourselves accountable for our inability to provide our consumers with the usual uninterrupted water service,” company president and CEO Ferdinand dela Cruz said. — Robie de Guzman

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

Marje Pelayo   •   December 12, 2019

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)

Senators find ‘unfair’ provisions in water concession deals

Marje Pelayo   •   December 10, 2019

MANILA, Philippines – Several provisions of the concession agreement with Maynilad and Manila Water seem unfavorable to the government, according to some senators.

Senator Christopher ‘Bong’ Go noted Manila Water’s violations in the provisions of the contract which the water company must adhere to, such as providing efficient wastewater treatment facilities across the metropolis.

“Manila Water has yet to comply with its contractual obligation to provide for sewerage and wastewater treatment facilities in Metro Manila, which clearly constitutes a breach of the concession agreement,” he said.

Even Senator Cynthia Villar believes scrutiny of the concession agreement is very much necessary particularly the provision that deals with the water rate adjustments.

Iyong sinasabi na (the part where they said) we have no control over water concessionaires and if the government doesn’t agree to the rate increase, then the government will have to pay, dapat pinag-uusapan iyong rate. Dapat dyina-justify mo iyong rate (the rate must be discussed. You have to justify your rate,)“ Villar argued.

The two senators expressed support for recommendations to review all contracts entered into by the government and make sure that they do not compromise the welfare and rights of the Filipino people. MNP (with details from Nel Maribojoc)

Maynilad, Manila Water rate to spike in 2020

Maris Federez   •   December 6, 2019

MANILA, Philippines – Manila Water and Maynilad Water Services will affect a rate hike in January 2020.

This is at the height of President Rodrigo Roa Duterte’s directive to review the contract between the government and the two water concessionaires. 

Maynilad and Manila Water will implement around P3.00 per cubic meter price hike.

Add to this is the increase in the Foreign Currency Differential Adjustment (FCDA) and other foreign currencies that the two water concessionaires use in their loan payment.

In 2018, the Metropolitan Waterworks and Sewerage System (MWSS) has approved Maynilad and Manila Water’s rate increase petition.

For Maynilad, the approved rate hike is P5.73 which will be applied on a staggered basis for five years or until 2022.

Manila Water, on the other hand, had been allowed a rate increase of P6.22 to P6.50.

Meanwhile, with the expected rate hike, water service interruption will still be experienced by Maynilad and Manila Water consumers as the National Water Resources Board (NWRB) has yet to increase Metro Manila’s water allocation despite the rising water level in Angat Dam.

As of Friday morning, the water level in Angat Dam was at 195.03 meters.

This, however, is still far from the dam’s normal operating level of 210 to 212 meters.

Authorities advise the public to continue to conserve water to maintain sufficient water supply in Angat Dam until the next dry season. (from the report of Harlene Delgado) /mbmf

REACH US

The Philippine Broadcast Hub

UNTV, 915 Barangay Philam,

EDSA, Quezon City M.M. 1104

(+632) 8396-8688 (Tel)

(+632) 8920.8336 (Fax)

info@untvweb.com (General inquiries)

support@untvweb.com

UNTV News and Rescue Emergency Hotlines:

LANDLINE (+632) 8396-8688

ADVERTISE WITH US

(+632) 8 442.6244 Loc. 143, 144, 162, 164

advertising@untvweb.com

ABOUT UNTV

UNTV is a major TV broadcast network with 24-hour programming. An Ultra High Frequency station with strong brand content that appeal to everyone, UNTV is one of the most trusted and successful Philippine networks that guarantees wholesome and quality viewing experience.