With the recent Quezon City Regional Trial Court’s (RTC) decision favoring the enforcement of the Singapore-based International Commercial Court’s (ICC) award to Maynilad, the water concessionaire is hopeful that Malacañang would finally protect the Manila Waterworks and Sewerage System (MWSS) from the mistakes of the past administration and save it from the series of legal debacles simply by honoring the court ruling.
In fact, this RTC ruling is just a reaffirmation of the past two decisions by the Singapore arbitral tribunal that the Philippine government must compensate Maynilad for its losses because it is entitled to periodic rate adjustments as stated in its 1997 concession agreement with the MWSS.
Malacañang must abide by the legal ruling for (1) the benefit of Metro consumers and (2) to send the right signal to investors that it is committed to a level playing field and wants to adopt policies aimed at attracting more investments.
Maynilad CEO Ramoncito Fernandez is correct in saying that this latest legal victory is an affirmation that the concession agreement works and restores investors’ confidence in the Public-Private Partnership Program.
This is a major victory for consumers because rate adjustments ensure continued implementation of Maynilad’s multibillion-peso capital-expenditure projects intended to ensure steady, adequate supply of safe water.
The RTC ruling also serves to validate Maynilad’s claim that it has been experiencing increasing revenue shortfall as determined by the arbitral court in Singapore.
The Singapore ICC had ordered the Philippine government to reimburse Maynilad a total of P3.4 billion for losses from March 2015 to August 2016 alone, and that the firm is entitled to recover additional losses from September 2016 onward.
In contrast to the acrimonious relations in the past between the MWSS and Maynilad/Manila Water, we now see more harmonious ties between the regulators and its two concessionaire under MWSS Administrator Reynaldo Velasco, a former police general.
The Supreme Court itself has pointed out in a ruling that private contractors are entitled to reasonable profits so they can recoup their investments.
The MWSS’s refusal during the past administration to abide by two ICC decisions favoring Maynilad serve as undeniable proof of government flipflopping that had spooked investors despite the Philippine government’s investment-grade status.
The rate adjustments will actually have minimal effect on Metro consumers, including those who consume only 10 to 20 cubic meters per month.
What we’re driving at here is that, always, the government must respect the sanctity of contracts.
Who’s targeting govt doctors?
WE see as a very disturbing development the recent killings of medical doctors whose mission is to save lives and yet are being murdered in broad daylight for yet unknown reasons.
This year alone, according to health groups, five murders of government doctors have taken place, with none of the cases solved by the police as of today.
The latest incident is the murder of Dr. Vicente Soco in Dinagat Island last September 14. Initial reports indicate that the doctor was gunned down by a man on a motorcycle while the victim was at his family’s gasoline station.
The Philippine Medical Association (PMA) and the Health Alliance for Democracy have condemned the killing of Soco, and rightly so.
“The PMA, once again, laments the killing of another doctor, Dr. Soco of Butuan, who was shot two days ago by unknown assailants,” PMA President Irineo Bernardo III said.
The PMA chief also expressed alarm that “the government has not issued a statement on these crimes against our members with impunity”.
Soco is the fifth doctor to be killed this year, following the deaths of doctors Dreyfus Perlas in March, Sajid Sinolinding in April and Geroge Repique and Romeo Gadot Subiate, both in July.
Perlas was the municipal health officer of Sapad in Lanao del Norte, while Sajid Sinolinding was the brother of Dr. Kadil Sinolinding, Jr. of the Department of Health (DOH). Repique served as the provincial health officer of Cavite, while Subiate served in Tarlac City.
We agree with the observation by health groups that the government should take decisive action amid the culture of impunity in the country.
We support the call for the DOH to make “a firm and unequivocal stand for the protection of all health workers, especially those working at the frontlines”.
The police should investigate all these unsolved cases of killings of doctors and bring the perpetrators to justice.
E-mail: ernhil@yahoo.com.