Tribunal favors Maynilad vs. gov’t over P3.4-B compensation claim

MANILA, July 25 — The three-man arbitral tribunal has ordered the Philippine government to pay PHP3.42 billion to Maynilad Water Services, Inc., the water unit of Metro Pacific Investment Corp. (MPIC), as it ruled the company’s compensation claim valid against the government’s Undertaking Letter.

In a disclosure to the Philippine Stock Exchange (PSE) Tuesday, MPIC said the tribunal ordered the government to reimburse Maynilad PHP3.42 billion for losses from March 11, 2015 to August 31, 2016, “without prejudice to any rights that Maynilad may have to seek recourse against MWSS (Metropolitan Waterworks and Sewerage System)” for losses incurred from January 1, 2013 to March 10, 2015.

The tribunal also ruled that the company is entitled to recover from the government its losses incurred from Sept. 1, 2016 onwards.

“In case a disagreement on the amount of such losses arises, Maynilad may revert to the Tribunal for further determination,” MPIC added.

“We will continue to honor our commitments under the CA (Concession Agreement) and pursue the capital expenditure projects that will improve further the quality of service to our customers, as well as support the government’s initiative in ensuring the sustainability of our country’s water resources,” said Maynilad President and CEO Ramoncito Fernandez.

Sought for comments, the office of MWSS Administrator Reynalod Velasco said it will wait for the copy of decision of the arbitral tribunal before making any comments.

MWSS said it has yet to receive the copy of the decision on the arbitration case. (Kris M. Crismundo/PNA)

Popular

Myanmar’s junta chief to head to Bangkok summit as quake toll surpasses 3,000

By Agence France-Presse The head of Myanmar's junta is expected to travel to Bangkok on Thursday for a regional summit, as the death toll from...

PBBM reciprocates VP Sara’s gratitude on helping her mend ties with dad

By Darryl John Esguerra | Philippine News Agency “Glad I could help.” This was the response of President Ferdinand R. Marcos Jr., according to Palace Press...

Purchase of US fighter jets vital to boost PH defense – ES Bersamin

By Ruth Abbey Gita-Carlos | Philippine News Agency Executive Secretary Lucas Bersamin on Thursday, April 3, said the planned procurement of fighter jets from the...

Recto says use of PhilHealth funds to spare PH from new debts

By Benjamin Pulta | Philippine News Agency Finance Secretary Ralph Recto on Wednesday defended the transfer of idle and unused Philippine Health Insurance Corp. (PhilHealth)...