MANILA (UPDATE) - An international court has ordered the Philippine government to pay P7.39 billion in compensation to Manila Water for losses the water concessionaire incurred due to denied rate increases since 2015.
The Singapore-based Permanent Court of Arbitration ruled in favor of Manila Water, saying the Ayala-owned company "has a right to indemnification for actual losses suffered by it on account of the Republic’s breach of its obligation," the water concessionaire said in a Philippine Stock Exchange disclosure.
The amount represents "actual losses" Manila Water suffered from June 2015 until November 2019, it said.
The government was also ordered to reimburse Manila Water's court expenses, including the fee it paid the Arbitration court.
"Manila Water will work with the Republic for an orderly and managed satisfaction of the Award," the company said in a statement.
In March, over a million households in the capital region and nearby provinces suffered from a water crisis due to the declining water level in Angat Dam, the metro's main source of water, amid a dry spell.
Low supply and high demand in Metro Manila's east zone prompted Manila Water to implement rotational supply cuts.
In October, President Rodrigo Duterte warned that he would terminate the government's concession agreements with Manila Water and Maynilad should the utility firms fail to address the water supply crisis.