PR 03-13-2015

Chief Regulator Joel Yu of the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) divulged that Maynilad Water Services, Inc. (Maynilad) erroneously invokes the Republic undertaking calling for government to pay its alleged P3.44 Billion revenue losses. On the call of Maynilad for the government to pay its incurred revenue losses, Chief Regulator Yu emphasized that the MWSS has already submitted its position to the Finance Department on Maynilad’s claim stating that the latter will not acquire losses as a result of the deferment by the MWSS of the implementation of the increase in its basic water charge as decided by the Appeals Panel in the Arbitration case. In a media briefing on 13 March 2015, the Chief Regulator reiterated that the provisions of the Concession Agreement on the matter are quite clear and that the requirements for Maynilad to make a valid claim are not present saying Maynilad erroneously invoked the Undertaking Letters of the Republic. Yu explained that the Government’s undertaking can be invoked only upon the occurrence of the following: (1) The Republic interferes with the mechanisms contained in Article 9 of the Concession Agreement; or (2) The Republic or any government agency causes the MWSS and the Regulatory Office to defer the implementation of the Standard rate. “There is no doubt that none of the foregoing has come to fore and the Republic has obviously not interfered with any of the processes or mechanisms in the determination and implementation of the Standard Rates. Moreover, neither the Republic nor any government-owned agency has caused MWSS and the RO await the Manila Water Company, Inc (Manila Water) ruling.” Yu expounded.