Manila Water's contract extension opposed

MANILA, Philippines - A water regulatory official has expressed opposition to Manila Water Co. Inc.'s request for an immediate extension of its 25-year water distribution contract in Metro Manila. A document from the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) indicated that "renewal cannot be made now" but only upon the expiration of the concession agreement in 2022. If it fails to extend its 25-year contract, which began in 1997, the Ayala-controlled water utility may reduce its viability as a business, an official said. Once its contract ends in 2022, all of the company's assets will be turned over to the MWSS. A text message sent to Alberto Agra, the officer-in-charge (OIC) of the MWSS-RO, has been unanswered. Earlier, GMANews.TV reported that the appointment of Agra, who also heads the Office of the Corporate Government Counsel (OGCC), was questioned owing to conflict of interest issues. Agra admitted to being an employee of Maynilad Water Services Inc., which distributes water in Metro Manila's West Zone. This makes him ineligible to be OIC of the MWSS-RO, sources say, citing provisions in the concession agreement. Meanwhile, Ranulfo J. Habaluyas, Manila Water's Media Relations Manager, told GMANews.TV that a reply is forthcoming. Besides increasing its customers to five million in 2007 to just three million ten years ago, Metro Manila's east zone water distributor has also made water available 24 hours a day to nearly all its customers, its website said. Manila Water's share prices during Thursday's trading at the Philippine Stock Exchange remained unchanged at P18.00 from the previous day. The company's market capitalization, or the value of all its shares, is at P36 billion. Among its top stockholders, besides regular employees, include the company's chief financial officer Sherisa Nuesa and President Gloria Macapagal-Arroyo's Chief of Staff Jose Ma. "Joey" Salceda. Both own 100,000 shares, according to the company's disclosure. - GMANews.TV