The Metropolitan Waterworks and Sewerage System (MWSS) approved the fourth quarter Foreign Currency Differential Adjustment (FCDA) for Manila Water Company, Inc. and Maynilad Water Services, Inc.
On 9 September 2015, MWSS issued board resolutions approving and confirming the recommendation of the MWSS Regulatory Office to implement the fourth quarter FCDA effective 1 October 2015.
Manila Water to increase water tariff
Manila Water will implement FCDA equivalent to 0.21% of the 2015 Average Basic Charge of Php25.25 per cubic meter or Php0.05 per cubic meter effective 1 October 2015 pursuant to the provisions of Amendment No. 1 of the Concession Agreement. This is an upward adjustment of Php0.03 per cubic meter compared to the 3rd Quarter 2015 FCDA of Php0.02 per cubic meter.
The impact of the fourth quarter FCDA on the monthly bill of residential customers is an increase of Php0.17 per month for those consuming 10 cubic meters or less and not belonging to lifeline customers; an increase of Php0.39 per month for those consuming 20 cubic meters; and an increase of Php0.79 per month for those consuming 30 cubic meters.
Manila Water provides water and wastewater services primarily to the East Zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina. It is also in charge for the southeastern parts of Quezon City and Sta. Ana and San Andres in Manila. In Rizal province, the Manila Water services the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Angono, Baras, Binangonan, Jala-jala, as well as City of Antipolo.
Maynilad to increase water tariff
Maynilad will effect FCDA equivalent to 1.58% of the 2015 Average Basic Charge of Php33.60 per cubic meter of Php0.53 per cubic meter effective 1 October 2015 pursuant to the provisions of Amendment No.1 of the Concession Agreement. This is an upward adjustment of Php0.11 per cubic meter compared to the 3rd quarter 2015 FCDA of Php0.42 per cubic meter.
The impact of the FCDA on the monthly bill of residential customers is an increase of Php0.36 per month for those consuming 10 cubic meters or less; an increase of Php1.37 per month for those consuming 20 cubic meters; and an increase of Php2.80 per month for those consuming 30 cubic meters.
Maynilad provides water and wastewater services to residents in most of Manila, parts of Quezon and Makati cities, as well as the cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Navotas, and Malabon in Metro Manila. Its franchise area also covers the cities of Bacoor and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite province.
The MWSS BOT issued Resolution Nos. 487-2001 on 1 October 2001 and 512-2001 on 26 October 2001 pursuant to Amendment No. 1 of the respective Concession Agreements of Maynilad and Manila Water. These resolutions are meant to address, among others, the direct and indirect consequences of extraordinary forex gains/losses arising from the payment of concession fees and concessionaire loans.
The FCDA mechanism was formulated to account for forex losses or gains beginning 1 January 2002, arising from MWSS loans and concessionaire loans used for capital expenditures and concession fee payments. This is a corrective mechanism to avoid under recovery or over recovery of these forex losses.