New deal to remove Maynilad, Manila Water power to pass on corporate expenses to consumers

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The government will remove the authority of Maynilad and Manila Water to pass on some corporate expenses to consumers under the new concession agreement it is drafting, says Justice Secretary Menardo Guevarra. (FILE PHOTO)

Metro Manila (CNN Philippines, December 4) — The government will remove the authority of Maynilad and Manila Water to pass on some corporate expenses to consumers under the new concession agreement it is drafting, said Justice Secretary Menardo Guevarra.

"We may draft a new version that eliminates all provisions that are contrary to law and public policy, as well as those that are highly prejudicial to the interest of the public, such as the inclusion in water rate charges of certain corporate expenditures that are not concerned at all with the distribution of water,” Guevarra told CNN Philippines.

To recall, Guevarra hinted on Tuesday that there could be changes in the contracts between the two Metro Manila water concessionaires and the Metropolitan Waterworks and Sewerage System.

He also revealed that the contracts contain dozen provisions disadvantageous to the government and the public.

READ: 'Onerous' water deals cost gov't ₱10.8 billion, DOJ says

Further, Guevarra said that the government can come up with major amendments to the concession agreement.

"We need not wait for the expiration of the original or extended contract to propose major amendments. That's allowed under the concession agreement itself,” said Guevarra.

When asked on the timeline of the new contract, he said: “Always asap.”

CNN Philippines correspondent Xianne Arcangel contributed to this report.