Gov’t loses 17.4-B arbitration suit; solon seeks House inquiry on water concession deals

Asenior opposition congressman on Friday decried a ruling of the Permanent Court of Arbitration that ordered the government to pay some 17.4 billion for rejecting petitions of one of two water concessionaires in Metro Manila.

Senior Assistant Minority Leader and Bayan Muna Rep. Carlos Zarate said this development necessitates a congressional inquiry into the concession agreement that government entered with the Ayala-led Manila Water Company which won the ruling in a case it filed before the Singapore-based international tribunal

The Manila Water, which the Supreme Court recently slapped with a 11.84 billion fine for violation of environmental laws, made a disclosure of the ruling at the Philippine Stock Exchange on Friday.

In its decision, the PCA penalized the Philippine government of some 17.4 billion for its continued refusal to allow the Manila Water to hike its water distribution service fees from June 1, 2015 to November 22, 2019.

Zarate said the PCA decision is actually a ruling that will penalize consumers, not government.

“This decision came about because of the onerous concession agreement signed by government with the two water concessionaires and this should be investigated,” the opposition lawmaker stated.

He described the PCA decision as “mockery and an insult to Filipino consumers.”

“It nonetheless exposes the tragedy and lunacy of privatization that then, but more so now, is being aggressively pushed by the capitalist-controlled government,” the opposition leader said.