Risky business: Why gov’t made sure Manila Water, Maynilad would earn

between the Metropolitan Waterworks and Sewerage System and the two concessionaires basically ensures that Manila Water and Maynilad will be able to recover what they spent to overhaul Metro Manila’s problematic water system.

Computing for the ADR takes into account various figures, which include domestic and international interest rates, the country’s credit rating, currency risk, and cost of equity. Dumol, who published his reflections regarding the deal in a World Bank report, said that officials were eventually convinced that the variables and process for the rate adjustment were the most logical at the time they crafted it. Moreover, he cited that the private sector would think twice in raising water rates since it is a highly-regulated commodity.

"They invested at a time when nobody wanted to invest in water utilities...From what we gathered, there is a concession because nobody wanted to do it before so there had to be an incentive so investors can come in," he said in Filipino. In 2013, the two concessionaires proposed to raise water rates. Maynilad wanted a hike of P8.58 per cubic meter or 25% higher to P42.55 per cubic meter. Meanwhile, Manila Water proposed a rate hike of P5.83 per cubic meter or 21% to P34.12 per cubic meter.

Since Duterte's tirades, discussions on the government taking over water services sprang up once more. Can the government handle it?

Same old same stance.

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Manila Water, Maynilad: We're not public utility companiesDefining the relationship of Manila Water and Maynilad with state regulators has several legal and business implications. Whatever. It's Plunder. This is getting crazy...water is national natural resource, it’s ok if you did your jobs however they are not and the agreement is unconstitutional in the first place, people have been suffering because of them, same goes for electricity wherein we pay system losses too We learned from our Econ class that utilities are 'natural monopolies' and hence should be run by govt. But govt is corrupt and inefficient so we privatized them. At least private operators can be checked from time to time by govt, whereas govt can't effectively supervise itself.
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