DAVAO CITY — Finance Secretary Carlos G. Dominguez III said he does not expect the ongoing contract review for the water distribution sector to dampen investor sentiment, adding that the review will benefit the entire nation in the end.

“People have to understand that what is being reviewed, are terms that are onerous to the Philippines, to the nation. It’s not the government (that is disadvantaged), it’s the taxpayer,” Mr. Dominguez told reporters Tuesday.

The government is moving to revise provisions it considers onerous in the concession agreements of Metro Manila’s two water providers, Maynilad Water Services, Inc. and Manila Water Co., Inc.

“What I have seen is that the concessionaires have signaled that they’re willing to revisit those terms, so I think that should be a good signal to the rest of the investing community that you know people look at the interest of the nation as a whole,” he said.

He said reviewing the terms of the agreements will not affect investor confidence as it acts as a “signal to everybody that the private sector and the government are working together for the benefit of the nation.”

“(The two water companies) said that they are willing to do the review. In fact, let me tell you, just to show you that this contract review is… acceptable. When we bid out the contract for the water concession in New Clark City, the onerous terms were not there. And yet, Manila Water bid, so it must be acceptable to them. So there’s no issue, or should not be an issue,” Mr. Dominguez added.

Justice Secretary Menardo I. Guevarra has said that a government meeting with the two firms will likely happen sometime next year. Mr. Guevarra said a team is now working on the draft of the revised concession agreement.

The contract revisions follow a finding by the Department of Justice of objectionable terms in the contracts, including the non-interference of the government in rate-setting.

In April, President Rodrigo R. Duterte ordered agencies to review all contracts and reconsider terms deemed disadvantageous to the public.

“If they were made with onerous contracts, I think it’s only right for the administration to review them,” Mr. Dominguez said. — Beatrice M. Laforga