Tag Archives: maynilad

DUTERTE OKAYS 25-year franchises for Maynilad, Manila Water

President Rodrigo R. Duterte has signed laws granting 25-year franchises to water concessionaires Maynilad Water Services, Inc. and Manila Water Company, Inc.

Malacañang announced the development on Friday and released copies of the laws.

Signed on Dec. 10, 2021, Republic Act (RA) 11600 grants Maynilad a franchise to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the west zone of Metro Manila, including the province of Cavite.

RA 110601 grants Manila Water a franchise to operate in the east zone of Metro Manila and Rizal province.

The franchises shall have the right to bill and collect fees from end-users for water supply and sewerage services.

The concessionaires shall also be allowed to develop, finance, construct, install, maintain, and operate, as its operations may require, water sources, including new raw water sources, including deep wells, dams, aqueducts, tunnels, treatment plants, reservoirs, pump stations, and facilities for the transmission, conveyance and distribution of water, including pipelines, machinery, and other waterworks to supply water in the franchise area, for domestic, commercial, industrial, and other purposes. READ MORE

GOV’T, WATER CONCESSIONAIRES to sign revised water concession agreement

Concessionaires agreed to waive arbitral award and terminate all related proceedings against the government

Department of Justice (DOJ) Secretary Menardo Guevarra on Tuesday said two water concessionaires agreed to officially waive their arbitral award and terminate all related proceedings against the Philippine government under their earlier deals.

In a message to newsmen, Guevarra also said “the MWSS (Metropolitan Waterworks and Sewerage System) and Maynilad Water Services Inc. (MWSI) are ready to sign their revised water concession agreement today (Tuesday)”.

“Like the other concessionaire, Manila Water Co. Inc. (MWCI), “Maynilad will also sign an official waiver of its arbitral award to terminate all related proceedings,” he added.

The revised concession agreement between the MWSS and Maynilad contains essentially the same terms as those in the recently signed deal between the MWSS and Manila Water company, Guevarra said. READ MORE

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New concession deal ‘win-win’ for all stakeholders: MWSS

 May 19, 2021,

MANILA – Metropolitan Waterworks and Sewerage System (MWSS) Chairman and Acting Administrator Reynaldo V. Velasco said the new concession agreement between the government and the Maynilad Water Services, Inc. is “a big step towards water supply security”.“It’s a win-win… Read More

HARRY ROQUE: The case against oligarchs

President Duterte would prove beyond all doubt that he is serious in implementing the law, especially against the high and powerful

AYALA PANGILINAN

The case against the Ayalas and Manny Pangilinan, operators of water concessionaires Manila Water and Maynilad, respectively, revolves around three causes of actions, to wit:

First, the concession contracts are null and void ab initio, or from the very start, because it was extended up to 2037 prior to its expiration in 2022 without the benefit of public bidding;
Two, specific provisions in the 2017 agreements are patently disadvantageous to government, including but not limited to, transferring the burden to pay their income tax to the consumers and prohibiting government regulators, the MWSS (Metropolitan Waterworks and Sewerage System), from discharging its mandate to regulate the rate of charges that the companies will collect from the consumers;
Three, syndicated estafa for its continued collection of environmental fees intended to build water treatment facilities without actually building such facilities, resulting in the pollution of Manila Bay. READ MORE

DUTERTE: AYALA, PANGILINAN THE ‘BIG FISHES’ IN CORRUPTION

President Rodrigo Duterte slams owners of two private water concessionaires in Metro Manila, the Ayala family and Manny Pangilinan, and calls them  as the “big fish” in corruption.

“You’re asking, where is the big fish? Where is the corruption, the big ones? I will deliver them to you now. Ayala and Pangilinan.”
Manila Water Co. is a subsidiary of the Ayala family’s Ayala Corp., while Manuel V. Pangilinan-led Metro Pacific Investment Corp. owns a controlling stake in Maynilad Water Services.

 

WILL VILLAR’S PRIME WATER TAKE OVER MAYNILAD, MANILA WATER?

Justice Undersecretary Emmeline Aglipay-Villar. (Photo courtesy of DOJ Usec. Emmeline Aglipay-Villar Facebook page)

Department of Justice (DOJ) Undersecretary Emmeline Aglipay-Villar on Friday inhibited herself from the agency’s review of the water concessionaire contracts by the government, following reports that President Rodrigo Duterte was planning to disenfranchise Manila Water and Maynilad Water and award new water deals to his cronies and political supporters.

Usec Villar inhibits from DOJ review of water deals

HEYDARIAN: D UTERTARD OLIGARCHS TAKING OVER PHILIPPINE WATER BUSINESS

The President wants old business elites identified with the opposition kicked out  and replaced by his own business cronies, according to scientist, academic, book author and columnist Richard Heydarian.

Heydarian, a Duterte critic,  claims that the President is targeting “traditional business ‘oligarchs’ while promoting his own class of ‘Dutertegarchs.”

In an article  titled “Duterte replacing old elite with new in the Philippines,” published on Asia Times, Heydarian also wrote that: “Duterte has singled out liberal-leaning business elites known to be more aligned with the ‘yellow’ political opposition. Among them are the Ayala and Pangilinan clans, both of which maintain sprawling and profitable business interests across the country.”
The Palace, however, dismissed Heydarian’s claim.
President Rodrigo Duterte is not trying to kick out Maynilad Water Services Inc. and Manila Water Co. to replace them with new business allies who are dependent on his political patronage, according to Presidential Communications Operations Office (PCOO) Secretary Martin Andanar. Read More

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“To eliminate any cloud of doubt on the impartiality of the Department’s review and renegotiation of the water concession agreements with the Metropolitan Waterworks and Sewerage System that my affinity to the owners of PrimeWater Infrastructure Corp. have brought, I am inhibiting from any involvement in the Department’s review and renegotiation of the said agreements,” Aglipay-Villar said in her memorandum to Justice Secretary Menardo Guevarra.

The justice undersecretary, a former Diwa Party-list representative and daughter of former national police chief Edgar Aglipay, is the wife of Public Works and Highways Secretary Mark Villar, whose family runs Prime Water Infrastructure Corp.
Meanwhile, Guevarra confirmed that Aglipay-Villar made the move in compliance with his request.
“I requested Usec. Villar to inhibit herself to dispel suspicions that the DOJ contract review may not be completely objective due to an alleged possible conflict of interest. It’s unfair to Usec Villar who has always acted with professionality, but the circumstances call for it. One thing I can say, any good lawyer will come to the same findings and conclusion,” Guevarra told reporters.
Guevarra publicly said while the government has enough basis to take over the operations of water concessionaires, it is currently more concerned at amending the onerous provisions in the agreements, which were originally signed in 1997 between the government and concessionaires Manila Water and Maynilad.

Palace: Water firms didn’t lose money over canceled deals

Manila Water is a subsidiary of the Ayala Corp., while businessman Manuel V. Pangilinan’s Metro Pacific Investments Corp. owns a controlling stake in Maynilad.
The two private companies distribute water in Metro Manila and other parts of the country under agreements signed with state regulator Metropolitan Waterworks and Sewerage System (MWSS) in 1997.
In March, supply interruptions started in various areas serviced by Maynilad and Manila Water due to increased demand and reduced water levels of dams amid a scorching dry season in the country.
President Duterte lashed out at the water concessionaires after a review conducted by the DOJ showed the water contracts were “onerous and disadvantageous to the people, relative the terms or periods, government non-interference, as well as concessionaire indemnification for losses.”
Due to the two provisions, the government was ordered by the Singapore arbitration court to pay about PHP3.6 billion to Maynilad and recently, PHP7.4 billion to Manila Water as compensation for losses and damages.
Guevarra said another onerous provision is the extension of these contracts to 2037, considering that the extension was granted 12 years to 13 years before the original expiration of the 25-year concession agreements in 2022. (ROGER M. BALANZA with PNA report)

Firms’ corporate income tax included in water deal review: DOJ

MANILA — Justice Secretary Menardo Guevarra on Monday said the review of the 1997 agreements with water concessionaires Maynilad and Manila Water Inc. will take up the issue of how the firms’ corporate income tax is passed on to consumers.”The team will surely consider the issue of passing on the… Read More

Duterte’s approach on water concession deals ‘effective’

MANILA — President Rodrigo Duterte’s tough approach in demanding for more favorable water concession agreements has been “effective”, Malacañang said on Monday.Presidential Spokesperson Salvador Panelo shrugged off the recommendation made by Vice President Leni Robredo to… Read More

Duterte: Military to take over Maynilad, Manila Water operation

duterte-in-marawi

FOR ECONOMIC SABOTAGE

President Rodrigo Duterte is considering ordering the military to take over the operations of water concessionaires Manila Water and Maynilad, in case of revocation of the two firms’ agreements with the national government.

AYALA PANGILINAN

Still infuriated by the alleged “onerous” provisions of the government’s concession agreements with the two firms, Duterte floated the idea during the inauguration of The Tent at Vista Global South in Las Piñas City on Thursday night.
The President said he might be compelled to suspend the writ of habeas corpus, a move he deemed fit to go after Manila Water and Maynilad, as well as other errant firms.
Huwag niyo akong laruan na takut-takutin ninyo ako, ‘Sige, mag-sibat kami, bahala ka wala kayong tubig’ (Do not play dirty tricks and threaten me, ‘Fine, we will cease our operations but no one can supply you water.’) I will order the armed forces to operate your water,” he said.
O sige, sundalo mag-take over kayo (To the soldiers, take over their operations). Then I will declare a suspension of the writ of habeas corpus, but only against economic sabotage,” Duterte added.
The President made the pronouncement, as he censured Manila Water and Maynilad for putting water consumers at a disadvantage by letting them carry the burden of their concession deals with the government.
Article 3, Section 15 of the 1987 Constitution stipulates that the writ of habeas corpus can be suspended, “in cases of invasion or rebellion when public safety requires it.”
Article 7, Section 18 of the 1987 Constitution also states that the President, “whenever it becomes necessary, he may call out such armed forces to prevent or suppress lawless violence, invasion or rebellion.”
Duterte said the concession agreements apparently “mirrors” the Anti-Graft and Corrupt Practices Law or Republic Act 3019.
Hindi ko talaga maintindihan kung bakit itong mga u***, pumasok diyan sa kontratang ‘yan (I do not understand why these stupid people entered into a contract with them),” Duterte said.
Sabi ko (I said), if you get a copy of the contract and ilagay mo face-to-face with the Anti-Graft and Corrupt Practices Law which is Republic Act 3019, it mirrors what is in the anti-graft and the anti-graft mirrors the contract.
The Metropolitan Waterworks and Sewerage System (MWSS) on Tuesday revoked the approved 15-year extension of concession agreements with Manila Water and Maynilad that are supposed to expire in 2037.
The revocation means the two firms only have until 2022 to operate since the 2009 resolution extending the 25-year concession deals signed in 1997 is already considered ineffective.
The latest development came after Duterte learned that the contracts with Manila Water and Maynilad are disadvantageous to both the government and the Filipino people.
The Singapore-based Permanent Court of Arbitration issued separate decisions, compelling the Philippine government in 2017 to pay PHP3.4 billion to Maynilad and in November 2019 to compensate PHP7.39 billion to Manila water for the losses the two water firms allegedly suffered due to non-implementation of increases in water rates.
Duterte slammed the ruling that favors the two water concessionaires.
Ngayon (Now), if for any reason, they incur losses, we have to pay for their losses. Ang una, ‘yung PHP3 billion plus kasi na-delay ang increase because the regulator, ang MWSS, pinag-aralan pa (First, the government was forced to pay PHP3 billion due to the delay of increase in water rates because the water regulator, MWSS, conducted a study first),” he said.
“Saan ka makakita, sila ang may karapatan (When did that happen that they have the right to do that)? And in that contract, ang tubig (the water), for purposes of interpreting the contracts in case of conflict, water will be treated as a commodity, only water, not a natural resource,” he added.
On Dec. 10, Manila Water and Maynilad wrote separate letters to Duterte, expressing their intent to settle the issue by allowing the review of and possible amendments to the existing water concession deals.
Duterte, however, said he would let MWSS Administrator Emmanuel Salamat negotiate with the two firms.
“I’m not talking. You go to Salamat, General Salamat. He’s the MWSS (administrator). Mag-usap kayo. Bahala kayo diyan (Talk to him. Settle the issue with him),” he said.
“I will just prepare the charges. Kapag hindi tayo nagkaintidihan tayo dito, economic plunder then there is no bail (If we fail to reach an agreement here, I will file economic plunder, then there is no bail),” Duterte added. (PNA)