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Wednesday, October 23rd, 2019

Int’l tribunal orders govt to pay Maynilad P3.42B

by July 25, 2017 General

THE international tribunal in Singapore has ruled that Maynilad Water Services Inc. has the right to collect P3.424 billion in revenue losses against the Philippine government for the delay in implementing water rate adjustments.

In a disclosure to the Philippine Stock Exchange, investment holding company Metro Pacific Investments Corp. said the arbitral tribunal “ordered the Philippine government to repay Maynilad P3,424,690,000 for losses from March 11, 2015 to August 31, 2016, without impairing Maynilad’s right to seek recourse against Metropolitan Waterworks and Sewerage System (MWSS) for losses between January 1, 2013 and March 10, 2015.”

The three-man tribunal also ruled that Maynilad can recover losses from the government from September 1, 2016 onwards, and that the company may go back to the tribunal in case a disagreement crops up regarding the amount.

The Philippine government must indemnify Maynilad for any delay in increasing the standard rates, specifically after the enforcement of the concession agreement (CA) on February 21, 1997, according to the disclosure.

The agreement, which will end in 2022, gave Maynilad the right to manage, operate, repair, decommission, and refurbish all the facilities required to provide water delivery services and sewerage services in the East Concession Zone of the MWSS.

Maynilad President and Chief Executive Officer Ramoncito Fernandez said the international tribunal’s verdict affirmed the trust and confidence the company has placed in the agreement, which has been responsible for improving water and wastewater services in its concession area.

“We will continue to honor our commitments under the CA and pursue the capital expenditure projects that will improve further the quality of service to our customers, as well as support the government’s initiative in ensuring the sustainability of our country’s water resources,” Fernandez said.

Maynilad will coordinate with the government in looking for the most efficient way to enforce the ruling in the coming days, the company said.