Singapore High Court rules in favor of Maynilad
The Singapore High Court has upheld the Arbitral Award in favor of Maynilad Water Services, Inc. and dismissed the Philippine government’s appeal to set aside a ruling granting the utility compensation for revenue losses.
This was disclosed to the Philippine Stock Exchange, Maynilad’s top shareholders DMCI Holdings and Metro Pacific Investments Corporation.
The firm said that Maynilad’s Singapore-based counsel formally confirmed that the decision of the Singapore High Court, (orally) issued on September 4, 2018, dismissing the Philippine Republic’s Setting Aside Application has become final as of October 4, 2018.
The decision became final after the Philippine government has decided to no longer appeal the dismissal of its Setting Aside Application to the Singapore Court of Appeal within 30 days from 4 September 4, 2018.
Aside from dismissing the Setting Aside Application, the Singapore High Court also ordered the Philippine government to pay Maynilad S$40,000 by way of costs.
To recall, the government filed the Setting Aside Application on February 13, 2018 to set aside the First Partial Award dated July 24, 2017 (the Arbitral Award) which was issued by a unanimous three-man Arbitral Tribunal in the arbitration between Maynilad and the government.
The Arbitral Award upheld the validity of Maynilad’s claim against the Undertaking Letters issued by the Philippine Republic, through the Department of Finance.
The Arbitral Award ordered the Philippine Republic to compensate Maynilad for its revenue losses, from March 11, 2015 onwards, resulting from the refusal of the Metropolitan Waterworks and Sewerage System to implement Maynilad’s tariff adjustment for the period 2013 to 2017, which tariff adjustment includes corporate income tax.
Maynilad has expressed “great admiration for the efficiency of Singapore’s justice system given the speed with which the Singapore High Court has disposed of the Philippine Republic’s Setting Aside Application.”
“This latest victory vindicates Maynilad’s
position that there are no valid and meritorious grounds to challenge or set aside the Arbitral Award,” said Maynilad’s President and CEO, Ramon S. Fernandez.
Maynilad said it will now work towards an efficient collection of its claim in a manner that recognizes the interest of its various stakeholders including its shareholders and customers, taxpayers and the government.