House approves 25-year franchises for Maynilad, Manila Water

MANILA – The House of Representatives on Tuesday approved on third and final reading the measures seeking to grant franchises to water concessionaires Maynilad Water Services and Manila Water Co.

The chamber approved House Bills 9422 and 9423 granting a 25-year franchise to Maynilad Water Services and Manila Water Company, respectively.

Both bills garnered 206 affirmative votes, 7 negative votes, and zero abstention.

Under the bills, the Maynilad will keep its services in the west zone including the province of Cavite, while Manila Water will retain its services in the east zone of Metro Manila including the province of Rizal.

The franchise grantees shall be allowed to establish, manage, operate, repair, rehabilitate, expand, and improve the waterworks and sewerage system in the franchise area, including the right to bill and collect fees from end-users for water supply and sewerage services.

The concessionaires shall also be allowed to develop, finance, construct, install, maintain, and operate, as its operations may require, water sources, including new raw water sources, including deep wells, dams, aqueducts, tunnels, treatment plants, reservoirs, pump stations, and facilities for transmission, conveyance and distribution of water including pipelines, machineries, and other waterworks for the purpose of supplying water in the franchise area, for domestic, commercial, industrial, and other purposes.

For the public interest, the grantees shall modify, improve, or change its facilities, pipelines, systems, and equipment for the purpose of providing efficient and reliable service at reasonable costs.

The bills state that grantees shall charge reasonable and just fees for its services to all types of consumers and water users within its franchise area.