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Duterte to read publicly letters of Maynilad, Manila Water —Palace


President Rodrigo Duterte will disclose to the public the letters sent to him by concessionaires Manila Water and Maynilad, Malacañang said Wednesday.

Duterte’s spokesperson Salvador Panelo did not say when the President will publicly read the letters.

Panelo said Duterte received the letters dated December 10 which were signed separately by Maynilad chairman Manny Pangilinan and Manila Water chairman Fernando Zobel de Ayala.

“The chief executive will read the letters of Maynilad and Manila Water before the public for transparency and to show that all the steps being undertaken by the government in resolving this issue with the two Metro Manila water concessionaires are aboveboard and legitimate,” Panelo said.

The Palace official said the letters stated that they were heeding the call of the President to revisit the concession agreements “for amendments or revisions of the provisions which are onerous to the government and ultimately, their consumers.”

Manila Water also said it would no longer pursue its claims worth P7.39 billion against the government and that it would defer the implementation of their rate increase.

Maynilad has also announced that it would no longer push for the enforcement of its arbitral award in 2017 in the amount of P3.4 billion.

“The President will evaluate this development, as well as study the practical and legal consequences of the situation, before making any decision on what measure to undertake next,” Panelo said.

Duterte had said he wants to talk to the representatives of the water companies and all the lawyers involved in the preparation, negotiation, and drafting of the 1997 concession agreements and determine the reason why they allowed the supposed onerous provisions.

“Once again, the President exercising political will, coupled with his ability to ascertain inequities in contract law as well as his character to identify with the plight of the ordinary Filipinos, has protected their interest, in obedience to the constitutional command to serve and protect the people,” Panelo said.

On Tuesday, Duterte threatened to stage a government takeover of the operations of water services in Metro Manila if he fails to get a satisfactory explanation regarding the concession agreements.

The President has railed against the agreements which prohibit any government interference in rate-setting and provide an indemnity clause in case of such interference.

The government also questioned the extension of concession agreements until 2037, way before the existing contracts were supposed to expire in 2022.

Industry regulator Metropolitan Waterworks and Sewerage System said on Wednesday that it had revoked its previous decision extending its concession agreements. — MDM, GMA News

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