Metropolitan Waterworks and Sewerage System Chairman and Acting Administrator Reynaldo V. Velasco is optimistic that a new concession agreement will be reached soon by the government and Maynilad Water Services, Inc.
Velasco’s optimism stems from the recent approval and signing of the revised concession agreement between the government and Manila Water Services Inc. The concession agreement with Maynilad is undergoing review by a government panel.
The MWSS Chief expects the new concession agreement will be similar to that of Manila Water’s, a win-win solution to the consumers, government and concessionaire.
The existing concession agreement was entered into in 1997 during the term of President Fidel V. Ramos between the government and the partnership of Benpres and Lyonnaise des Eaux of France and covers the west zone of the concession area.
In 2007 during the Macapagal-Arroyo administration, it was re-privatized, and the west zone was placed under the consortium of DMCI and MPIC.
The west zone concession area is composed of the cities of Manila (certain areas), Quezon City (certain areas), Makati (certain areas), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon—all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario—all in Cavite Province.
Justice Secretary Menardo Guevara in previous reports said that the government panel “will be proposing essentially the same terms and conditions as those that were contained in the revised agreement with Manila Water.”
The Manila Water new concession agreement is patterned after the New Clark City Water and Wastewater JVA of the Bases conversion Development Authority that was developed with the advice of the Asian Development Bank. The agreement protects the interest of Government and retains the economic viability of the concession.
“But of course, we recognize the fact Maynilad is differently situated compared to Manila Water so there will be probably a lot of discussions also with respect to possible modification of the terms and conditions,” Guevara said.
Velasco said that the signing of a new concession agreement with Maynilad is critical to the water security projects. Maynilad’s capital expenditure projects will rehabilitate and replace old pipelines, install new pipes in unserved areas, construct new pumping stations, reservoirs and treatment facilities, among others.
He added that a new concession agreement will boost investors’ confidence as many of the investors have adopted a wait-and-see attitude pending the signing of a new concession agreement.
Maynilad is the largest private water concessionaire in the Philippines serving over 1.4 million customers. It maintains and operates some 6,831 kilometers of primary, secondary and tertiary pipelines. It has 35 pumping stations, 32 water reservoirs and 28 in-line boosters across its service area. Its reservoirs have a total holding capacity of over 700 million liters of potable water.
Maynilad has four world-class water treatment plants: La Mesa Treatment Plants 1 & 2 and Putatan Water Treatment Plants 1 & 2 that produce water according to the PNSDW of the Department of Health.
To prevent the pollution of waterways and bodies of water, Maynilad processes wastewater and sludge through 19 sewage treatment plants, two joint sewage and septage treatment plants and one septage plant. The combined treatment capacity of these plants is around 664,000 cubic meters per day.