President Rodrigo Duterte would not step out from the presidency without resolving the onerous provisions in the 1997 water concession agreement, Malacañang said Thursday.
Presidential Spokesman Salvador Panelo said the President, during their discussion Wednesday night, renewed his desire to talk with those who were involved in the crafting of the deal.
“Last night, he repeated that he still wants to talk with lawyers of the government, private lawyers. ‘I still want to hear why they allowed this kind of treason,’” Panelo told reporters.
The President would make an announcement on Jan. 6 next year on the matter, according to Panelo.
Sought for details, Panelo said he would not want to preempt the President.
“You can be assured that the stand of the President remains unchanged; I will not preempt the President,” he said.
President Duterte has repeatedly lambasted the two water firms over “onerous provisions” in the 1997 water concession agreement which he said were unfair to the government and Filipino consumers.
The contract carries a provision that says the government should pay the water concessionaires for their losses that result from the actions of the state regulator during the effectivity of contract.
The government also cannot interfere with water rates, as stated in the agreement.
These provisions allowed the two companies to take the Philippine government to a Singapore-based arbitral tribunal which ruled that the state had to pay Maynilad P3.4 billion and Manila Water P7.4 billion for their respective losses.
On Dec. 10, the two firms sent a letter to Duterte, stating that they agreed to revisit and amend the provisions which earned the ire of the Chief Executive.
The letters were signed by business tycoons Manuel Pangilinan and Fernando Zobel de Ayala.
Pangilinan’s Metro Pacific Investments Corporation owns a controlling stake in Maynilad while Manila Water is a subsidiary of Ayala Corporation.
