MANILA - Manila Water Company Inc. has initiated an arbitration case against the national government over failure to reimburse losses after its rate hike petition was struck down by the Metropolitan Waterworks and Sewerage System (MWSS).
Manila Water has been demanding government to pay it around P79 billion for the entire period of its concession from 2015 to 2037.
The amount represents estimated losses after it wasn't allowed to raise water rates in January.
The company said not letting it raise rates would deny it a guaranteed rate of return as stated in its concession agreement with government.
Earlier this year, both Manila Water and Maynilad took the MWSS to international arbitration over the regulator's refusal to allow their proposed rate increases
Maynilad won the arbitration, but Manila Water lost its case, prompting it to file a letter of undertaking at the Department of Finance to reimburse its losses.
Meanwhile, in a text message, Finance Assistant Secretary Teresa Habitan said it's within Manila Water's prerogative to pursue the case. -- ANC