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MANILA, Philippines— President Rodrigo Duterte approved the Justice Department’s recommendation on terms and conditions for water concessionaires, which include giving the government a voice in setting water rates, Attorney General Menardo Guevarra said Wednesday.
“In principle, the President approved our recommendation, so the next step will be to sit down with the two water concessionaires in Metro Manila to discuss the specific terms and conditions of a new proposed water concession contract with each of them,” Guevarra said. in the weekly Kapihan sa Manila Bay.
According to Guevarra, the new water concession contract, which was presented to the president on Tuesday night, “is more equitable, more transparent and will reduce the government’s contingent liabilities in addition to improving its governance system.”
The president reportedly did not mention any timeframe for the dealers to finalize and approve the proposed new contact.
When asked about the specific changes made to the agreement, Guevarra said: “The non-interference clause and its double provision on compensation for damages arising from such government interference will have to disappear.”
Aside from the onerous provisions, Guevarra previously said that the DOJ deemed the extension of these contracts to 2037 irregular, considering that the extension was granted between 12 and 13 years before the original expiration of the 25-year concession contracts in 2022.
The concession contract came into force in 1997 during the term of President Fidel Ramos and covers a 25-year period, ending in 2022. President Gloria Macapagal-Arroyo extended the concession contract for another 15 years in 2009 or until 2037.
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