MANILA, Philippines - Ordered by the Metropolitan Waterworks and Sewerage System (MWSS) to reduce rates despite its petition for rate increase, the Maynilad Water Services Inc. (Maynilad) is now seeking arbitration from the International Chamber of Commerce (ICC).
West Zone concessionaire Maynilad said it has filed a notice of dispute with the secretariat of the ICC to resolve its rebasing dispute with the MWSS.
MWSS, in a resolution dated Sept. 12, denied Maynilad’s petition for an upward adjustment of 28.35 percent in its average basic charge or P8.58 per cubic meter, and instead ordered a reduction of 4.82 percent or P1.46 per cubic meter to be implemented in five tranches of 0.964 percent every charging year.
Under the concession agreement signed by Maynilad and the MWSS, any disagreement, dispute, or controversy that cannot be resolved through consultation shall be subject to arbitration.
A three-member appeals panel will conduct the arbitration proceedings in accordance with the rules of the United Nations Commission on International Trade Law.
The MWSS and Maynilad will have one representative each in the panel to be chaired by an appointee of the ICC chairman.
Unless otherwise ordered by the appeals panel, the current water rates will continue to apply pending a final decision by the panel.