Arbitration panel: PH gov’t should pay Manila Water P7.4B
MANILA, Philippines – Manila Water Co. Inc. on Friday said the Permanent Court of Arbitration in Singapore ruled that the Philippine government must indemnify the company P7.39 billion for losses incurred due to the non-implementation of rate hikes.
“The Tribunal ruled that Manila Water has a right to indemnification for actual losses suffered by it on account of the (government’s) breach of its obligation,” Manila Water said in a disclosure.
The company said the indemnity covers losses Manila Water suffered from June 1, 2015 until Nov 22, 2019 — or the period that water regulators did not implement water rate hikes that were supposed to be implemented in the previous rate rebasing period.
The dispute, mediated by the International Chamber of Commerce, stemmed from a proposal of Manila Water for a rate hike of P5.83 per cubic meter, which the Metropolitan Waterworks and Sewerage System countered with an order for a rate cut of P1.48 per cu.m. — which the MWSS itself questioned and withheld.
GSG
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