Duterte wants ‘fair’ contracts with Maynilad, Manila Water

President Rodrigo Duterte said he would review the government’s proposal for new concession agreements with water companies Maynilad and Manila Water.

Speaking at a briefing with Cabinet officials in Davao City, Duterte said the new contracts must be “fair” and the water companies should return the money they allegedly stole from consumers under the current concession deals.

“I think starting tomorrow the papers are here. I will review the contracts that are proposed by the government panel to the Ayala and Pangilinan consortium,” he said in an address aired on Friday.

“Ako okay na ako basta mabawi lang ang pera ng tao, even in installments. Na-kalma ako kasi whether we like it or not, water is very important in our lives.”

The 1997 concession deal went through scrutiny after Manila Water and Maynilad won in separate multi-billion peso arbitration cases abroad, infuriating Duterte.

He protested a liability clause in the concession agreement that holds the government liable if it interferes with the implementation of water rates and accountable to indemnify the companies for losses incurred.

The companies said last December that they were no longer pursuing the awards. The government had also revoked the extension of the concession agreements up to 2037 as these were approved way before the existing contracts were supposed to expire in 2022.

“You can have your contracts if it is to your liking but if it is not, then we proceed with another phase, which is really the filing of cases,” Duterte said. “Give us a contract that is fair.”

Last month, the President apologized to the Ayalas, who own Manila Water, and businessman Manuel Pangilinan of Maynilad for his hurtful words in connection with the water concession deals.

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. — RSJ, GMA News