House leaders said Sunday the entry of the Asian Development Bank in crafting a new concession agreement with the two water concessionaires”•Maynilad Water Services Inc. and Manila Water Co. Inc.”•would ensure a better deal for their combined 16-million customers.
Reps. Mike Defensor, Joey Salceda, Precious Hipolito Castelo and Manny Lopez welcomed the statement of Justice Secretary Menardo Guevarra that Finance Secretary Carlos Dominguez had informed him about the ADB consultants to help address the allegedly “onerous and disadvantageous” provisions of the 25-year concession deals signed in 1997.
“I am positive that the amendments or changes that President Rodrigo Duterte wants will be accomplished since even during the committee hearings conducted by the House of Representatives, Maynilad and Manila Water were both amenable to amend the provisions, such as doing away with charging consumers with corporate income tax and the non-intervention of the government among others,” Defensor said.
“The Executive’s move to have ADB facilitate the changes is brilliant and gives credence to the social, financial and legal considerations given ADBs experience and credibility. No one can claim that they were bullied to accept the necessary changes.”
Salceda said the ADB would ensure that the terms of the agreement were equitable and efficient.
“I think we can come up with better arrangements as this process will also serve as some sort of audit of the current deal,” Salceda said.
“We expect that the involvement of a professional and dependable partner, like the ADB, would enable both the government and the concessionaires to arrive at a deal that is both equitable and efficient in delivering the intended public welfare outcome.”
Salceda said the ADB had “already supported the [government] with value-adding projects, such as the Angat water supply optimization project, the Manila south water distribution project and the Umiray-Angat transbasin project.”
Castelo said “everything is worth a try.”
“No harm in exploring anything. We just hope the final recommendation will be reflective of the interest of the people”•no pass-on taxes and increase in tariffs to consumers. Any and all recommendations are subject to review.”
Lopez said “the Filipino people can rest assured that our interest will be protected with Justice Guevarra at the helm of the group to revise the concession agreement.”