President Rodrigo Duterte has signed laws granting 25-year franchises to operate to water concessionaires Maynilad Water Services, Inc. and Manila Water Company, Inc.
This is provided under Republic Act 11600 and Republic Act 11611 which Duterte signed last December 10 but was only released on Friday, January 7.
Under the new laws, Maynilad and Manila Water are mandated to conform to the ethics of honest enterprise and should provide water supply and sewerage services to its service areas in a “prudent, efficient and satisfactory manner.”
The water firms should submit a plan for “achieving one hundred percent (100%) water, sewerage, and sanitation coverage by 2037,” the laws added.
Likewise, the laws oblige the water concessionaires to modify, improve or change its facilities, pipelines, systems and equipment for the purpose of providing efficient and reliable service at reasonable cost whenever required by the Regulatory Office which is the Metro Manila Waterworks Sewerage System (MWSS).
In addition, the franchise grantees, their successors and assignees are required to comply with environmental and sustainability standards and should work with local government units to ensure safe and inclusive development.
The water concessioners are also tasked to adhere to the provisions of the Indigenous Peoples Rights Act.
Duterte earlier publicly protested a clause in the 1997 agreement with the two firms that holds the government liable if it interferes with the implementation of water rates and accountable to indemnify the companies for losses incurred.
In January 2020, Duterte asked the water concessionaires to accept the government’s proposal of a new deal that does not contain the provisions allegedly disadvantageous to the state and the consumers. He also threatened to arrest the owners of the water firms for alleged economic sabotage.
The two-decade-old concession deal went through scrutiny after Manila Water and Maynilad won in separate multi-billion peso arbitration cases abroad, infuriating Duterte.
The companies said last December 2019 that they were no longer pursuing the awards.—LDF, GMA News
Duterte grants fresh 25-year franchises to Maynilad, Manila Water
Source: News Panda Philippines
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