Razon investment in Manila Water has no effect on concession deal – Guevarra

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The Razon group’s Prime Metroline Holdings Inc. acquisition of the 25-percent stake at the Ayala group’s Manila Water Co. Inc. will not have any effect on the revision of the government’s concession agreement with the water firms. | T2TupasINQ

The two private companies distribute water to Metro Manila and other parts of the country under agreements signed with state regulator Metropolitan Waterworks and Sewerage System in 1997.

Last year, supply interruptions started in various areas in Metro Manila due to increased demands and reduced water levels of dams. It drew the ire of President Rodrigo Duterte, especially after a Department of Justice review showed the water contracts were “onerous and disadvantageous to the people, relative the terms or periods, government non-interference, as well as concessionaire indemnification for losses.

Currently, the government is drafting an agreement that Guevarra earlier described as one that “has no legally objectionable provisions, is fair and equitable, more transparent, and advantageous to the consuming public. “Inputs on the financial and commercial provisions are now being incorporated in the draft, once consolidated, we may start discussions with the concessionaires in March,” Guevarra said.

 

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