Justice Secretary Menardo Guevarra on Monday said the acquisition by business tycoon Enrique Razon of the 25 percent shares of Manila Water would not affect government’s resolve to revise the onerous and grossly disadvantageous provisions in the concession agreements with the two water firms.
Guevarra stressed the selling of 25 percent stake of the Ayala-owned Manila Water to Razon had “no effect whatsoever.”
Razon reportedly invested P10.7 billion to Manila Water that operates in the Metro Manila’s east zone.
“The CA (concession agreement) will be revised for the benefit of the consuming public, regardless of the ownership of the water company,” Guevarra said in a text message.
The Department of Justice secretary is part of the team tasked to revise the government contracts with the two private water concessionaires—Manila Water and Maynilad Water.
The DOJ is finalizing the draft contracts that would be discussed with the two firms to weed out from the 1997 concession agreements the onerous provisions that were disadvantageous to the consuming public.
Nonetheless, Guevarra assured the two water concessionaires that the draft contracts would be fair and equitable, and to the benefit of their clientele.
“Inputs on the financial and commercial provisions are now being incorporated in the draft. Once consolidated, we may start discussions with the concessionaires in March,” Guevarra said.