Palace respects Maynilad's arbitration case

by Ryan Chua, ABS-CBN News

Posted at Mar 31 2015 06:15 PM | Updated as of Apr 01 2015 02:15 AM

MANILA, Philippines - Presidential spokesperson Edwin Lacierda on Tuesday said Maynilad Water Services can resort to arbitration in case of disagreements with government.

"The arbitration mechanism is part of the agreement, so kung may difference of interpretation of provisions, arbitration is a mechanism for resolving disputes," he told reporters.

On Monday, Maynilad 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 its losses, amounting to P3.44 billion.

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.