Monday, March 30, 2015

Maynilad takes Philippine gov't to another arbitration case

Image result for images of Maynilad 
 
MANILA, Philippines - Maynilad Water Services on Monday said it took the Philippine government to another arbitration panel in Singapore, this time over government's failure to grant its P3.44-billion financial claims, arising from delays in implementing the water rate hike.

Maynilad said it served the Philippine government, through the Department of Finance, a notice of arbitration and statement of claim last March 27.

The company, controlled by Manny Pangilinan's Metro Pacific Investments, wants the government to compensate the West Zone concessionaire's losses, amounting to P3.44 billion.

"Maynilad served the Republic the Notice of Arbitration and Statement of Claim following the latter’s failure/refusal to pay the amount indicated in the Demand Letters. Pursuant to the Undertaking, the arbitration proceedings shall be conducted in Singapore before a three-man panel," the company said in a disclosure to the stock exchange.

The company claimed it has lost P3.4 billion from January 1, 2013 to February 28, 2015 due to the refusal of the Metropolitan Waterworks and Sewerage System (MWSS) to implement rate adjustments as ordered by the arbitration panel.

Maynilad said that under the sovereign undertaking, government undertook to compensate the company if its rate adjustments are delayed by MWSS.

Maynilad had earlier won an arbitration case against the government for an average P3.06/cu.m. rate increase.

However, the MWSS has said Maynilad's claims have no legal basis.

Reports that Manila Water lost its own arbitration case against the government has prompted the MWSS to further delay Maynilad's rate hike. - With ANC

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