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.
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.
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.
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