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Duterte wants to 'renegotiate' parts of Manila Water, Maynilad deals: DOJ

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2019/news/12/10/duterte.jpg"/><figcaption>President Rodrigo Roa Duterte delivers a speech at the Malacañan Palace on Dec. 3, 2019. <em>Toto Lozano, Presidential Photo</em></figcaption></figure></div><p>MANILA — President Rodrigo Duterte wants to &quot;renegotiate&quot; some provisions of the government&#x27;s concession agreement with Manila Water and Maynilad, the Department of Justice said Tuesday, adding the government will &quot;resist&quot; paying P10.8 billion in compensation to the utilities.</p><p>A provision that bars the government from interfering in water rates violates a law that mandates the Metropolitan Waterworks and Sewerage System to set them, said DOJ Spokesperson Markk Perete. </p><p>Duterte was &quot;riled up&quot; over many expenses that &quot;seem to be passable&quot; to consumers, including interest charges for the loans of Maynilad and Manila Water, business taxes, payment to arbitrators, and penalties for failing to set up wastewater treatment facilities, he said. </p><p>The President wants to revoke the extension of the firms&#x27; contracts, which was done some &quot;12 or 13 years&quot; before the original expiration in 2022, Perete said. </p><p>&quot;The President said gusto niyang makausap iyong (he wants to talk to the) 2 concessionaires, as well as iyong government lawyers and officials who negotiated with the concessionaires,&quot; he told radio DZMM. </p><p>&quot;We need to renegotiate the provisions of the contract which are onerous and number 2, ire-resist natin iyong (we will resist the) demand for payment based on a provision of a contract that violates our laws. </p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/jCzE46AkU4o?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>The Singapore-based Permanent Court of Arbitration earlier ordered government to pay P3.4 billion to <a href="https://news.abs-cbn.com/business/04/08/19/pangilinan-seeks-way-forward-on-tariffs-willing-to-drop-arbitration">Maynilad</a> and P7.4 billion to <a href="https://news.abs-cbn.com/business/11/30/19/international-court-to-ph-govt-pay-p739-billion-to-manila-water-for-denied-rate-hikes">Manila Water</a> as compensation for losses the water concessionaires incurred due to denied rate increases.</p><p>Duterte refuses to settle the compensation &quot;because that is based on a provision [of the] concession agreement which is illegal,&quot; said Perete. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/12/03/19/milked-by-billions-duterte-threatens-economic-sabotage-case-vs-water-distributors">&#x27;Milked by billions&#x27;: Duterte threatens economic sabotage case vs water distributors</a></li></ul><p>The arbitral ruling needs to be confirmed by local courts and during the proceedings, the Office of the Solicitor General will question &quot;the legality of the basis for the awards,&quot; he said. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/12/06/19/solicitor-general-to-use-all-remedies-to-contest-manila-waters-arbitration-win">Solicitor General to use &#x27;all remedies&#x27; to contest Manila Water&#x27;s arbitration win</a></li></ul><p>Maynilad and Manila Water appear to be &quot;willing to sit down and talk to the government,&quot; based on their previous statements, said Perete. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/12/04/19/manila-water-seeks-workable-solution-with-duterte-govt-on-compensation">Manila Water seeks &#x27;workable solution&#x27; with Duterte gov&#x27;t on compensation</a></li>	<li><a href="https://news.abs-cbn.com/business/12/09/19/house-to-probe-water-concessionaire-contracts-for-irregularities">House to probe water concessionaire contracts for &#x27;irregularities&#x27;</a></li></ul>

<p>President Rodrigo Duterte wants to renegotiate allegedly onerous provisions in the government's water concession deals with distributors Maynilad and Manila Water, the Department of Justice said Tuesday. </p>

President Rodrigo Duterte wants to renegotiate allegedly onerous provisions in the government's water concession deals with distributors Maynilad and Manila Water, the Department of Justice said Tuesday.