Effectivity of Manila Water, Maynilad revised contracts pushed back
MANILA WATER Co., Inc. and Maynilad Water Services, Inc. have been given an extension of up to Dec. 18 on the period for the start of their revised concession agreements (RCAs).
In a stock exchange disclosure on Wednesday, Manila Water said it had signed a second amendment of the RCA with the Metropolitan Waterworks and Sewerage System (MWSS) to further extend the period on the start of the agreement’s effectivity up to Dec. 18.
“This is to allow the parties additional time to complete the remaining conditions to the effectivity of the RCA,” Manila Water said.
This marks another extension for Manila Water, as it previously agreed with the MWSS to extend the start of the effectivity of its RCA to “no later than Nov. 18” versus the original date of Sept. 30.
The prior adjustment was approved in a bid to synchronize the effectivity dates of the two water concessionaires’ revised concession agreements.
In a separate mobile phone message, MWSS Administrator Leonor C. Cleofas confirmed that Maynilad had also been granted an extension in the effectivity of its revised concession agreement to Dec. 18.
“Yes, effectivity (of Maynilad revised concession agreement) is Dec. 18. The effectivity both for Manila Water and Maynilad is Dec. 18,” Ms. Cleofas said.
Maynilad was originally given a deadline of Nov. 18 for the effectivity date of its revised concession agreement.
According to Ms. Cleofas, the reason for Maynilad’s extension is also to give additional time to complete the remaining conditions.
Some of the salient features of the two water concessionaires’ RCAs include the removal of the foreign currency differential adjustment and imposition of a tariff freeze until Dec. 31, 2022.
Manila Water delivers water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.
Maynilad provides water to customers in Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave