Pursuant to the Concession Agreement (CA), a Rate Rebasing (RR) is mandatory every five (5) years. RR is a process that determines the level of rates for water and sewerage services that permits the Concessionaires to recover over the life of the concession (until 2037) its operating, capital maintenance and investment expenditures. RR is also a way to provide appropriate incentives to benefit both the Customers and the Concessionaires.

The RR looks into the historical (past 5 years) performance of the Concessionaires against established targets or commitments. It then updates a reasonable projection of all factors for the remaining concession life with a proposed Business Plan detailing the next five years. The Business Plan needs the approval of the MWSS being the principal and eventual owner of all the facilities by the end of the concession. As required in the CA, both Concessionaires submitted their respective Business Plans for 2013-2037 within the deadline of March 31, 2012.

Initial review of Maynilad’s Business Plan necessitated a re-submission of an updated “September Business Plan”.

Normally, the determined Rebased Rate is for implementation January 1, of the following year (2013). However, the engagement of independent experts to perform the very complex RR task has been delayed due to prospective experts’ failure to comply with all the stringent requirements of RA 9184, or the Government Procurement Act.

With the RR consultants on-board, an indicative tariff is expected by May 15, 2012. Thereafter, RO intends to conduct another series of PubCons from May 16 – June 16, 2013 to present to the Customers the Concessionaires’ Business Plan and get a feedback regarding the indicative Rebased Rate which hopefully is an acceptable rate and may be implemented starting July 1, 2013.

MWSS RO Resolution No.13-009-CA Manila Water Company, Inc.
MWSS RO Resolution No.13-010-CA Maynilad Water Srvices, Inc.

MWSS Board Resolution No.2013-100-RO - Maynilad Water Services, Inc.
MWSS Board Resolution No.2013-101-RO - Manila Water Company, Inc.

MWSS RO Media Release - Rate Rebasing 2013, 12 September 2013 
MWSS RO 2013 Rate Rebasing Presentation, 12 September 2013