Water firms going for arbitration

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MANILA, Philippines–The two water utility concessionaires in the Greater Manila Area have until Oct. 13 to file for arbitration proceedings.

AFP FILE PHOTO

 

Following the announcement last Thursday of regulators’ decision to deny their proposed rate hikes for the next five years, both Manila Water Company Inc. and Maynilad Water Service Inc. said they are disputing the decision and are preparing for arbitration.

 

In a statement published Monday, Maynilad cited Section 7.1 of the concession agreement, where the rate determined by the Metropolitan Waterworks and Sewerage System is submitted to arbitration.

 

Industry watchers say this would be the third time that the water concessionaires have resorted to such a forum regarding MWSS decisions.

 

Manila Water spokesperson Jeric Sevilla said the agreement gives the concessionaire 31 days from receipt of a disputed decision to file for arbitration.

 

Manila Water said in a separate statement that it is going for arbitration to assure its customers a sustainable and secure water supply as well as to address “the need for government to preserve the momentum and gains achieved by the most successful public-private partnership for the last 16 years,” – referring to its concession.

 

The water utility added that in resorting to arbitration, it is also addressing “the need for the country to protect the sanctity of business covenants” that the government enters into.

 

The MWSS decision announced last week translates to a rate reduction for Manila Water by P1.48 per cubic meter per year for the next five years. For Maynilad, the effect is a reduction of P0.29 per cubic meter over the same period.

 

The new rates are supposed to take effect on Oct. 1 but both companies said existing rates will apply during the arbitration process.

 

 

 

 

 

 

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  • eight_log

    Arbitration is nothing short of washing of hands by MWSS … kunwari lang yan. Ang mga bayaran na yan???? Hahahaha … akala ng mga yan ay tanga ang mga tao!!!! In this country no one is protecting the interest of the taong bayan … magmula kuryente, tubig, insurance, niloloko lang talaga … ninanakaw pa ang tax na binabayad!!!! PERO MAY HANGGANAN DIN ANG PISI NG TAONG BAYAN!!!!

  • concern_netizen

    The arbitration will be composed of only three parties. Maynilad, Manila Water, and CCI. San representation ng government? Who’s speaking in behalf of the consumers? Haw Siao na naman to?

  • Mark

    MASYADONG GAHAMAN SA PERA ANG MGA AYALA AT SI PANGILINAN!

  • kismaytami

    Anong sinabi ng nakulimbat ni lim-napoles sa pinaka-malaking scam sa kasaysayan ng Pilipinas? Water Scam ng Maynilad at Manila Water.

  • iping2sison

    Because of inept and incompetent government officials, privatizing the operations of water distribution was made with emphasis on making water available for all households in Metro Manila. Critics before had forecast the eminent higher rates hence this current sufferings of Metro Manila families.

  • thomas_xmoore

    Tibay talaga… tubong lugaw na… gusto pa maka-isa…

  • aldren85

    These two concessionaires should identify the specific issues that the MWSS Regulatory Board decided on which the concessionaires do not agree with. Fore example, are they objecting to the exclusion of income taxes on their rebasing plan? Are they saying that the costs of theLaiban Dam project, which has already been in their past rebasing plans in 2008 but has been removed by MWSS, a wrong decision under the contract? FInally, are they saying that the evaluation of the costs of their (concessionaires) future projects wrong? Actually, the concessionaires have already been collecting fees on the Laiban Dam project, but it has never started.

    What do the concessionaires hope to achieve? What if the concessionaires lose the appeal? They should be made, by MWSS, to post a bond equal to the amounts they will refund (because they will be collecting on present rates and not on the reduced rates) and the cost of the arbitration.With an amount running into billions, the bond will be very high? WIth the amount of possible profiits that the concessionaires MIGHT lose, the concessionaires may be tempted to use underhanded tactics on the members of the Appeals Board. We, the citizens, should watch the concessionaires, baka bluff lang ang resorting to the Appeals Board.

  • John Fereira

    Manila Water and Maynilad just return to the govt the concession contract at huwag na ninyong pagkakitaan. Kung sa akala ninyo nalulugi kayo di isauli na lang ninyo hayaan na ninyo yan. Okay ba.

    • abdul

      lugi daw pero pag nag declare ng kita billions!

  • Handiong

    Dito lang yata sa Pilipinas nangyayari na ang “regulator” ay dinadala sa arbitration ng “regulated”. Para que tinawag pa ng “regulator” ang MWSS kung hindi rin pala masusunod?

  • breakingball

    Saan kyo kumukuha ng kapal ng mukha mga taga Manila Water & Maynilad! Is it really the sanctity of business covenants or GREED! To us consumers it is GREED nothing more…. Suli bayad

    • WeAry_Bat

      They are resorting to blackmail, “to assure its customers a sustainable and secure water supply” when the issue is not about going forward which is plans and budgeting, but the past expenses and postponement of merited(?) increase.

    • GustoKoHappyKa

      kung tutuusin TUBONG LUGAW yan mga yan..libre naman ang tubig

    • abdul

      naalala ko, nag bid kami dati sa Rodriguez Water Treatment Plant. part ng bid e ung pag compute ng OPEX(Operational Expenses). sa less than P10/m3 na tubig bawi na ang CAPEX in a couple of years pati Operation and Maintenance Cost, kasama na pasweldo sa mga staff. ganyan ka greedy ang mga yan.

      • Alagad_ni_Mang_Tomas

        i hate the system, but since you participated in the tender, i guess you have insider knowledge…did you win?

      • abdul

        VAT inclusive pa yan ha. talo nga eh.we dont have an insider, parang ginamit lang n base price bid nmin.guess who won, sister company din ng MWC, Makati Devt Corp with a technology partner. and they are not even using new technologies sa water treatment nila, besides maganda nmn ang water quality from La Mesa dam, clarification, filtration at Chlorination lng potable na. kawawa lng mga clients ng MWC at Maynilad.

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