PRRD to make announcement on water issue next year: Palace

FILE: President Rodrigo Roa Duterte on November 18, 2019. ACE MORANDANTE/PRESIDENTIAL PHOTO

MANILA — President Rodrigo Duterte will make a major announcement in relation to the alleged onerous contracts between the government and two water concessionaires on Jan. 6, 2020, Malacañang said on Thursday.

Although mum on details about the President’s upcoming revelation, Presidential Spokesperson Salvador Panelo assured that the Chief Executive remains determined to resolve the water issue before the end of his term in 2022.

“He (the President) said he will make an important announcement on January 6, 2020. Siguro idi-discuss pa sa Cabinet (Perhaps he will discuss it with his Cabinet first),” Panelo said in a Palace briefing.

“I think you can be assured that the stand of the President remains unchanged. I will not preempt the President,” he added.

Earlier, Panelo said the President wanted the alleged onerous provisions in the water contracts removed.

He said the President was still keen on hearing the explanation of those involved in the drafting of the water contracts as to why they allowed the provisions which were disadvantageous to taxpayers.

“I think he repeated that he still wants to talk to those involved–the lawyers of the government, the private lawyers. He said ‘I still want to hear why they allowed this kind of treason against the interest of the Filipino people,’” Panelo said.

Panelo, however, said it was not clear whether Duterte wanted to speak to them or would let Metropolitan Waterworks and Sewerage System (MWSS) administrator Emmanuel Salamat do the negotiating.

“Wala siyang sinabi he wants, basta sinabi niya (He didn’t say he wanted to talk to them, he said) he wants to know why they allowed these kind of provisions. Sabi niya (He said), he will either rise or fall with this issue. Sabi niya hindi siya papayag na walang mangyari sa kasong ‘to (He said he won’t allow this case to remain unresolved),” he added.

He had no knowledge of whether or not the President wanted to speak to the water firms before his scheduled announcement.

Duterte began questioning the alleged onerous provisions after the Singapore-based Permanent Court of Arbitration issued separate decisions, compelling the Philippine government in 2017 to pay PHP3.4 billion to Maynilad and in November 2019 to compensate PHP7.39 billion to Manila Water for the losses the two firms allegedly suffered due to non-implementation of increases in water rates.

He said the concession agreements apparently “mirrors” the Anti-Graft and Corrupt Practices Law or Republic Act 3019.

The President refused to pay them and instead threatened to sue them for economic sabotage.

Duterte asked the Department of Justice and Office of the Solicitor General to craft new water concession agreements that are “favorable to the State and the Filipino people”.

He also floated the idea of ordering the military to take over the operations of the two water concessionaires.

On December 10, Maynilad and Manila Water have written separate letters to Duterte, expressing their intent to review the alleged onerous provisions in the existing water concession deals.

The Metropolitan Waterworks and Sewerage System (MWSS) had revoked the approved 15-year extension of concession agreements with Manila Water and Maynilad that are supposed to expire in 2037.

This means the two firms only have until 2022 to operate since the 2009 resolution extending the 25-year concession deals signed in 1997 is considered ineffective.