Manila – Saying that it was an onerous deal, the government will not pay water concessionaires Manila Water Co. and Maynilad Water for over P10-billion compensation as mandated by the Singapore arbitration, Presidential Spokesperson Salvador Panelo said.
Panelo added on Thursday the Singapore court decision stemmed from an “onerous” deal.
“Hindi, kasi nga onerous ‘yung kontrata eh, masyadong disadvantageous sa gobyerno,” Panelo said.
The Permanent Court of Arbitration in Singapore ordered the Philippine government to pay the Ayala-owned Manila Water P7.39 billion to compensate it for losses suffered from June 2015 to Nov. 2019.
Last year, the same Singaporean court ordered the government to pay the Manny Pangilinan-led Maynilad P3.4 billion due to the Philippines’ refusal to allow it to increase prices from 2013 to 2017.
Recently, President Rodrigo Duterte berated the owners of the Manila Water and Maynilad for allegedly milking billions from the people and the government over disadvantageous 1997 water contracts.
Duterte ordered the drafting of a new utility contract acceptable to the government./PN
