The Philippine government asked the High Court of Singapore to dismiss the 2017 arbitral award allowing Maynilad Water Services Inc. to collect higher tariff.
Metro Pacific Investments Corp., an investor in Maynilad, said in a disclosure to the stock exchange unit Maynilad received an email from the Singapore counsel of the Philippine government about an application the government filed with the High Court of Singapore to set aside the first partial award dated July 24, 2017.
The three-member arbitral tribunal of the International Chamber of Commerce ruled in favor of Maynilad in July last year. The tribunal ordered the government through the Department of Finance to reimburse Maynilad the amount of P3.42 billion for losses from March 11, 2015 to Aug. 31, 2016 because of the delayed implementation of its rebased water rates.
The arbitral court also ruled that Maynilad was entitled to recover from the government its losses from Sept. 1, 2016 onwards.
Metro Pacific said the Philippine government’s decision to challenge the 2017 arbitral ruling was baseless. “While it has yet to be served copies of the summons and the ‘setting aside’ application, Maynilad is confident that there are no valid and meritorious grounds to challenge or set aside the arbitral award, and that the Republic’s latest efforts to frustrate and stonewall the enforcement of the arbitral award will fail,” Metro Pacific said.
“Maynilad has already engaged Singapore counsel to ensure that the Republic’s baseless application is disposed of expeditiously,” it said.
Maynilad earlier said it would coordinate and cooperate with the government in finding the most efficient way to implement the judgment.
Maynilad is the water concessionaire for the west zone of Metro Manila.