Maynilad, Manila Water headed for face-off

The Lopez-owned Maynilad Water Services Inc. (MWSI) and the Manila Water and Sewerage System-Regulatory Office (MWSS-RO) are headed for a face-off as dispute over the former’s new water rate hike is expected to go to a higher level.

Sources at MWSS-RO said MWSI boycotted last Wednesday’s public hearing for the increase in water rate to protest the lower tariff rate approved by the regulatory body.

"We expect them (MWSI) to appeal the decison," said The STAR informant.

The appeal, however, would not be with MWSS but to an international arbitration body as provided by the concession agreement in 1997 when Metro Manila’s antiquated water system was divided into two and privatized. MWSI, which holds the more problematic western sector, was requesting for as much as P33 per cubic meter of water but MWSS-RO only approved P26.

In the case of eastern sector concessionarie Manila Water Company Inc. (MWCI), the regulatory office only approved P17 from its petition of as much as P25 per cubic meter of water. MWCI did not reportedly protest its lower approved rate.

According to sources, MWSI sent a letter to MWSS last week expressing its protest and intention not to attend the scheduled public hearing on Wednesday. – Jose Aravilla