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Duterte open to out-of-court settlement with Maynilad, Manila Water — Palace

By VIRGIL LOPEZ,GMA News

President Rodrigo Duterte may allow negotiations between the government and Metro Manila’s water distribution companies on the revision of the controversial concession agreement, Malacañang said Tuesday.

Duterte’s spokesperson Harry Roque said the issues raised by the President against the contract remain unchanged even as the latter expressed openness to discuss these with Maynilad and Manila Water.

“I think that’s an indication na kung pupuwedeng out-of-court settlement, he would explore out-of-court settlement,” Roque said in a televised briefing. 

"Kumbaga sa ordinaryong kasuhan, usap muna tayo bago tayo mag-demandahan. Siguro ‘yun po ibig sabihin ng ating Presidente."

On Monday night, the President apologized

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to the Ayalas, who own Manila Water, and Manuel Pangilinan of Maynilad for his hurtful words in connection with the water concession deal. 

Duterte made the statement as he expressed his gratitude to big businesses for assisting the government and aiding the people cope with the COVID-19 pandemic.

The Ayalas and Pangilinan welcomed the President’s remarks and vowed continued support to the administration’s efforts to address the public health emergency.

Before the COVID-19 pandemic, the President publicly protested a clause in the 1997 agreement that holds the government liable if it interferes with the implementation of water rates and accountable to indemnify the companies for losses incurred.

In January, Duterte asked the water concessionaires to accept the government's proposal of a new deal that does not contain the provisions allegedly disadvantageous to the state and the consumers. He also threatened to arrest the owners of the water firms for alleged economic sabotage.

The two-decade-old concession deal went through scrutiny after Manila Water and Maynilad won in separate multi-billion peso arbitration cases abroad, infuriating Duterte.

The companies said last December that they were no longer pursuing the awards. — RSJ, GMA News