Senate听panel proposes extension of Metro Manila water concession deal to sync with franchise period听
A SENATOR has proposed extending the revised concession deal of the two water distributors in the capital to synchronize it with the franchise that, if approved, would be valid until 2046.听听听听
The revised concession agreements signed by the government separately with private utilities听Manila Water Co., Inc. and Maynilad Water Services, Inc.听will expire in 2037.听听
At Wednesday鈥檚听Committee on Public Services听hearing on the franchise,听Senate Majority Leader Juan Miguel F. Zubiri said听changing the concession agreements鈥櫶齰alidity period would benefit consumers as it would mean more stable tariff rates.听听
He noted that if the current concession agreements end in 2037, a bidding for the distribution contracts will have to be undertaken, which could translate to听an increase in rates to听about P103 per cubic meter听(/cu.m.)听from听P67/cu.m.听听
The two concessionaires backed the proposal.听听听
Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said听an听extension would help听in terms of听their financing听requirements听and听ease听the tariff adjustments听necessary听to recover long-term investments.听听
鈥淭he longer recovery period translates to a lower tariff,鈥澨齭aid Manila Water Director Donato C. Almeda in the same hearing.听鈥淲e fully support that.鈥澨听
The proposed revisions will have to be sent to the听Metropolitan Waterworks and Sewerage System鈥檚听(MWSS) board,听whose members were absent in the hearing.听The MWSS oversees the privatized water distribution system in the capital and some surrounding areas.听听
Senator听Mary Grace S. Poe-Llamanzares,听chair听of听the听committee,听lambasted the MWSS board, particularly Vice-chair and Administrator Reynaldo V. Velasco, for skipping the hearing.听听听
鈥淲e鈥檝e听had hearings in the past and there鈥檚 actually a law saying that whoever is the head of the department has the responsibility and the burden of response. It鈥檚 really difficult to be conducting these hearings at such a very important matter when your head of agency is not even present,鈥澨齅s.听Poe-Llamanzares听said.听
鈥淚t would have been better if a member of the board was present here today to at least give legitimacy, and if not that, to show their actual endorsement and sincerity in approving this agreement,鈥澨齭he听said.听听
Ms. Poe-Llamanzares听said the proposed extension will have to be finalized before deciding on听the franchise.听听听
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.听
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary听MediaQuest听Holdings, Inc., has interest in听大象传媒听through the Philippine Star Group, which it controls.听鈥斕鼳lyssa Nicole O. Tan听
