A SUPREME Court (SC) ruling that forces Metro Manila’s two water concessionaires to finish their sewerage projects in five years instead of 2037 — the end of their contract — could raise water rates by P12 to P16 a cubic meter, an advocacy group said on Sunday.
In a statement, CitizenWatch Philippines described the decision as “confusing” because in 2011, the Supreme Court gave Metropolitan Waterworks and Sewerage System (MWSS) and its two concessionaires up to 2037 to comply since 17 government agencies that were tasked to prepare the way for the agency and the companies had not fully complied.
“For instance, it said that all the local governments in Metro Manila must provide land and right of way for the sewerage treatment plants, issue permits, and identify all households and establishments that are not compliant with the law,” it said.
It cited Maynilad Water Services, Inc.’s all-in average charge at about P49 a cubic meter, which includes environmental fees and value-added tax. Manila Water Co.’s rate is P39 a cubic meter.
CitizenWatch said the water companies could not comply because the agencies have been remiss in their duties “Where is the land? Where is the overall plan from public works to guide them?” it asked.
The group said the court had penalized MWSS and private concessionaires Maynilad Inc. by nearly P1 billion each for failing to finish their sewerage projects by May 2009 as required by a law that seeks to protect the country’s water bodies from pollution.
“The SC ruling was announced only in a press briefing but the fines must be paid within 15 days from its release,” CitizenWatch said. Daily fines of P322,102 until full compliance were also imposed, further pressuring the MWSS and its concessionaires to comply and complete their projects by 2022, it added.
MWSS did not immediately respond when asked to confirm the court ruling.
CitizenWatch noted that by singling out the concessionaires, the court was penalizing consumers.
“The same Supreme Court already acknowledged this reality before, that is why the deadline was extended to 2037,” it said. “This deadline gives time to everybody without burdening the public. In the five-year program, nobody wins, not the government and definitely not us, the public,” it said. — Victor V. Saulon
