Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
Executive Summary: Congressional inquiry covered the examination of the Metropolitan Waterworks and Sewerage System (MWSS),

Executive Summary: Congressional inquiry covered the examination of the Metropolitan Waterworks and Sewerage System (MWSS),

Ratings: (0)|Views: 458 |Likes:
Published by BlogWatch.ph
The 3-session hearings in Congress plus the submittals of investigation documents
by concerned individuals covered a wide range of subjects that included, among
others:
The 3-session hearings in Congress plus the submittals of investigation documents
by concerned individuals covered a wide range of subjects that included, among
others:

More info:

Published by: BlogWatch.ph on Jul 28, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/28/2012

pdf

text

original

 
 
EXECUTIVE SUMMARY
The Congressional inquiry covered the examination of the
MetropolitanWaterworks and Sewerage System (MWSS)
, which has origins that dates as farback as 1878, with the formation of the Manila Water Supply System, thenincorporated in 1971 and the eventual privatization of the water and seweragesystem via Concession Agreements in 1997.The 3-session hearings in Congress plus the submittals of investigation documentsby concerned individuals covered a wide range of subjects that included, amongothers:
a.
 
The Salaries and Benefits Of Officers and Board Members of the MWSS
The Committee hearings confirmed the revelation of President Aquino inhis first State Of The Nation Address, that the Officers and Board Membersof MWSS were receiving for many years an average of thirty (30) months of salaries by way of bonuses, allowances and benefits, considered scandalousby government standards.
b.
 
The Conversion of Portions of Balara and La Mesa Dam for SubdivisionHousing
The Committee hearings confirmed the conversion and subdivision intohousing of portions of Balara and La Mesa Dam to favor employees andofficers of MWSS and other agencies of government collaborating withMWSS, such as the Commission on Audit (COA), the Office of theGovernment Corporate Council (OGCC) and the Department of PublicWorks and Highways (DPWH) only by mere MWSS Board approval – an actthat is considered dubious, legally doubtful and in violation of theConstitution.
 
 
c.
 
The 1996 Bidding For Concession And The Eventual Concession Agreements In 1997 That Govern The Working Relationship BetweenMWSS And The Two (2) Concessionaires – Maynilad Water Services,Inc.(For The West Zone) And Manila Water Company, Inc.(For The East  Zone) Covering Entire Metro Manila, Rizal & Cavite Provinces
The 1997 bidding that attracted ten (10) bidders with only four (4) finallyparticipating resulted in Manila Water Company submitting the best bidand Maynilad Water Services the second best bid and consequently wereawarded the East and West Zones respectively. Only after the bid wasawarded, a draft concession agreement surfaced that was the subject of discussion and amendments between MWSS and the awardees.The Concession Agreements are claimed to have originated from Englandand covered a wide range of items relative to the discharge of the functionsby the awardees, the performance criteria, the rate setting and raterebasing system and the role of the regulatory office as enforcer andcomptroller of the Concession Agreements and the fees to be paid by theconcessionaires to MWSS.The Concession Agreements, among others, established a performancestandard such as: (a) meet 100% water coverage within 10 years; (b) haveno real increase in water rates within the first 10 years; (c) provideuninterrupted, 24-hour water service to all connected customers within 3years, meeting standards set by the Department of Health (DoH); and, (d)put in place a waste water program that dramatically improves publichealth and environmental conditions with 80% coverage within the 25-yearconcession period. 
d.
 
The Default Of Maynilad In The Payment Of Concession Fees
Since March 2001, Maynilad defaulted in the payments of its concessionfees and volunteered to resign its award and for which it was penalized,after arbitration, by calling on its performance bond amounting to USD150Million. The default of Maynilad resulted in an award by the Supreme
 
 
Court of PHP8.5 Billion in favor of MWSS. However, Maynilad filed for arelief for rehabilitation which resulted in a conversion of the PHP8.5 Billionaward to an equity share of MWSS of 16.3% in Maynilad through theintercession of the then President Gloria Arroyo.
e.
 
The Substitution Of Maynilad After Default Of A Consortium Consisting Of DM Consunji, Inc. (DMCI) And Metro Pacific Investment Corporation(MPIC)
In 2006, a consortium of DMCI and MPIC won in a bid to buy out the 87%share of Maynilad without disturbing the equity share of MWSS. MWSS didnot renegotiate its PHP8.5 Billion receivable from Maynilad that wasconverted to equity.
 f.
 
Performance Benchmarks Of The Concession Agreements
The Committee hearings found the two Concessionaires as falling short of the performance benchmarks of the Concession Agreements.Unfortunately, close to 15 years of privatization, the concessionaires arehardly on target in the performance of their obligations and commitments:they have not met the target of 100% water coverage that they committedto do within 10 years of their contract; the increases in their water rateshave been horrendous; they have not achieved their target of uninterrupted, 24-hour water service to all connected customers; and, their25-year horizon looks dim for a waste water program being put in place forthe improvement of public health and environmental conditions.
g.
 
The Nature Of Work Of The Regulatory Office And Its Performance
The Regulatory Office (RO) is a key provision of the Concession Agreements,with the office exercising the power to set performance targets, to examineassets and resources of concessionaires to meet their obligations, todetermine water tariff rates based on a formula, to make recommendationon investments and loans that will be incurred by the concessionaires andwith the help of outside technical people to determine whether costs have

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->