Water companies express concern after MWSS cancels extension of water contracts beyond 2022

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Water concessionaires are now left high and dry after the Metropolitan Waterworks and Sewerage System (MWSS) decided Tuesday to cancel the extension of their agreements.

At the hearing of the Senate public services committee Wednesday , officials of Maynilad Water Services, Inc. and Manila Water Company, Inc. raised concerns over the revocation of the extension of their 1997 concession agreements with the MWSS in compliance with the Department of Justice’s findings questioning why the deals were prolonged to 2037.

“It’s actually a very big question that is being asked everywhere right now. Our investors, our creditors, our shareholders, are all asking us the same question,” Almendras responded when asked if the east zone concessionaire would keep its water distribution system when its contract with the government expires.

Maynilad’s chief operating officer Randolph Estrellado shared Almendras’ sentiment, saying their ongoing projects will be affected by the revocation of their agreements’ extension. MWSS Administrator Emmanuel Salamat was unable to respond to the water companies’ queries, but said the agency agrees with the DOJ that the contracts were “renewed and extended in favor of the concessionaires.”

“And by the way, ngayong araw lang natanggap ng dalawang concessionaire ang notice . So they are not necessary agreed yet with the revocation order. They would like to have the time to be able to present also their side,” she added.

 

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