13 March 2025

PRESS RELEASE

MWSS RO CONFIRMS FOREIGN CURRENCY DIFFERENTIAL ADJUSTMENT (FCDA) ON MANILA WATER CUSTOMERS’ WATER BILLS FOR THE 2ND QUARTER OF 2025

This is to inform the public that on 12 March 2025, the MWSS Board of Trustees (BOT) resolved to approve the recommendation of the MWSS Regulatory Office (RO) to implement the Foreign Currency Differential Adjustment (FCDA) for the Second (2nd) Quarter of 2025, based on its evaluation of the FCDA proposal of water concessionaire, Manila Water Company, Inc. The MWSS RO confirms a tariff increase for Manila Water customers, effective 01 April 2025.

Section 9.8 of the Amended Revised Concession Agreement (RCA) between the MWSS and Manila Water stipulates that “more detailed guidelines on the determination and application of the FCDA to the Concessionaire Loans will be issued by the Regulatory Office, as assisted by the Department of Finance and as approved by the MWSS.” During a public consultation drive on 30 July 2024, the MWSS RO presented its draft FCDA Guidelines under the Amended RCA to customers and local government units within the Concession Area, media representatives, concerned public and private institutions, and other stakeholders for review and feedback. On 07 August 2024, the MWSS BOT issued a Resolution approving the FCDA Guidelines prepared by the MWSS RO, which became effective on 31 August 2024.

On 20 January 2025, Manila Water submitted its FCDA petition for the 2nd Quarter of 2025, which was subsequently validated and evaluated by the MWSS RO. Manila Water, which provides water and wastewater services to the East Concession Area, will implement an upward FCDA of 1.39% of its 2025 Average Basic Charge of Php47.10 per cubic meter, or Php0.65 per cubic meter. Meanwhile, Maynilad Water Services, Inc., which serves the West Concession Area, has agreed to defer any adjustments at this time.

The FCDA is a quarterly-reviewed tariff mechanism that allows the Concessionaires to recover losses or give back gains arising from fluctuations in foreign exchange rates, as payments are made for foreign currency-denominated loans that are used to fund the expansion and improvement of water and wastewater services. It is a corrective mechanism formulated by the MWSS RO to avoid under-recovery or over-recovery caused by forex movements.

(sgd.)

PATRICK LESTER N. TY

Chief Regulator