D.O.J. tO wateR fIRMs: NO ReasON tO ’pLay haRDbaLL‘ J

USTICE Secretary Menardo Guevarra told water concessionaires Manila Water Co. and Maynilad Water Services Inc. that there is no reason for them to reject the new contract that the government is drafting to replace the “onerous” provisions of their 1997 contracts that were extended to 2037.

Guevarra assured the two water firms the new contracts will not be lopsided in favor of the government, and will address the needs of the consuming public.

“The government will come up with a draft agreement that has no legally objectionable provisions, is fair and equitable, more transparent, and advantageous to the consuming public,” Guevarra said, a day after President Duterte issued a “take-it-or-leave-it” notice to the water firms, warning them their refusal of the new contracts being drafted could spur him to either let the military take over their operations or allow new players.

“I see no good reason why the water concessionaires will play hardball and induce the government to take extraordinary measures, like taking over their operations or nationalizing the water distribution service,” the DOJ chief said on Wednesday.

Guevarra pointed out that the new water supply contracts are not intended to ease out the two water utilities but would simply address the allegedly onerous provisions in the old agreements.

He expressed optimism that the new contracts would be acceptable to the two water concessionaires.

Among the provisions in the old contracts that should be struck down for being onerous are the prohibition on the government’s interference in the rate-setting mechanism of the two water firms and the Metropolitan Waterworks and Sewerage System (MWSS).

According to Guevarra, said it may take six months to finalize the water distribution deal with Manila Water and Maynilad.

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.