December 5, 2021


business is the world

Gov’t to forge new deal with water companies


THE Office of Justice will negotiate with two drinking water concessionaires in Metro Manila on the proposed new deal just after the President ordered their assessment thanks to alleged onerous provisions.

Justice Secretary Menardo I. Guevarra claimed President Rodrigo R. Duterte previous evening approved the proposed deal for Maynilad Water Solutions, Inc. and Manila Drinking water Co., Inc.

The new deal eliminated the “onerous” provisions in the preceding offer, Mr. Guevarra said.

“New provisions that will be included, that will by some means, that will make the h2o concession agreements far more equitable, additional transparent and will reduce contingent liabilities on the element of the authorities moreover bettering its governance system,” he claimed in the course of the Kapihan sa Manila Bay discussion board.

“In theory, the President has approved our advice so the subsequent phase will be to sit down with the two drinking water concessionaires in Metro Manila to go over the particular phrases and conditions of a proposed new drinking water concession arrangement with each individual of them,” he added.

Mr. Guevarra explained to reporters by using Viber message that the President did not give a deadline, but the critique panel intends to fulfill them as soon as attainable.

The Justice office in December last yr mentioned it located a dozen of onerous provisions on the contracts of the h2o concessionaires.

This incorporates the provision on the non-interference of the authorities in charge-setting and the liability of the authorities if the firms suffer losses. It also uncovered as irregular the extension of their contracts till 2037, a long time just before the initial expiration in 2022.

President Rodrigo R. Duterte in June said that he was wonderful with the contracts of the drinking water suppliers as extensive as they “pay back” to the buyers. He also stated that he would  file conditions from them if they do not approve the proposed contracts.

The concessionaires formerly won an arbitration scenario, which ordered the federal government to pay back them indemnity for the losses they suffered. Both equally the firms claimed they would not pursue the awards. — Vann Marlo V. Villegas