Maynilad willing to withdraw arbitration case filed vs gov’t

Maynilad Water Services, Inc. is "willing to drop" the arbitration case it earlier filed against the Philippine government, which would have allowed the company to recover as much as 13.4 billion the country supposedly owes it based on the decision of the Singapore High Court.

This happens as President Rodrigo Duterte ordered his administration to review Maynilad's concession agreement with the government amid speculation that the deal was crafted to the disadvantage of the Filipino people.

Speaking to reporters on Monday, Maynilad Chairman Manuel V. Pangilinan said he welcomes the review and that his company is willing to cooperate.

"We are waiting for the advise as to whom we should talk to," Pangilinan said. "But we expressed our fate and confidence on the government regarding these concession agreements".

Last week, Duterte told Solicitor General Jose Calida and Justice Secretary Menardo Guevarra to study the government’s arbitration case against Maynilad Water.

Maynilad had earlier claimed the government owed it more than 13 billion in compensation for the delayed implementation of tariff adjustments for the rate rebasing period of 2013 to 2017.

Then last year, the Singapore High Court upheld its earlier decision and grant the arbitral award in favor of Maynilad, compelling the Philippine government to pay the company the aforementioned amount.

The word on the street is that Duterte is "furious" upon learning that the concession agreement between the Philippine government and Maynilad has provisions that are disadvantageous to the country.

These provisions, he said, are the exact same thing that allowed the company to be able to pursue an arbitration case against the government and actually win it.

When sought for comment on the matter, Pangilinan did not show defiance, even proceeding to say that his company is willing to drop the arbitration case altogether provided that his company and the government will agree to a favorable tariff structure.

"We are still trying to settle that. That is going to be discussed. Should we come up with terms on tariffs, we are willing to drop the arbitration," Pangilinan said.

"But that is subject to an agreement with the government and on how to move forward with the tariff rate issue," he added.

Duterte's recent remarks on Maynilad were made during the last cabinet meeting held a week ago. Instead of calling out Ayala-led Manila Water Company, Inc. on the water shortage being felt within its concession area, the cabinet's discussion on water issue centered in on the West Zone concessionaire.

This was not the first time that Duterte launched a tirade against a Pangilinan-led company. In February, the President threatened to shutdown PLDT, Inc. if the company will fail to improve the public's access to the Citizen's Complaint Center 8888 hotline number.

On Monday, Maynilad has inaugurated its second treatment facility that sources water from Laguna Lake — the Putatan Water Treatment Plant 2.

Located in Muntinlupa City, the plant is part of Maynilad’s water security program to minimize dependence on Angat Dam.

As of this month, the facility already began producing 100 million liters per day (mld) of potable water for some 1 million Maynilad customers. The facility's output will be expanded in phases until it reaches 150 mld by the end of the year. (MBM)