Repeal of water contracts in Philippines could complicate Chinese dam loan repayments: congressman
- The country’s water regulator has cancelled the 15-year extension of two concession deals after President Duterte rebuked two utility companies
- Lawmaker Carlos Zarate says this has resulted in higher water rates for Filipinos, and paying back the loan could see costs increase further
Manila Water Co Inc and Maynilad Water Services were looking to charge users a water security fee on their bill, money that would have been put towards the repayment of a US$211 million loan from the Export-Import Bank of China (Exim Bank).
The loan is for the construction of the New Centennial Water Source-Kaliwa Dam Project, which is meant to secure water supply to Manila even during dry seasons.
Water regulator Metropolitan Waterworks and Sewerage System (MWSS) on Wednesday told lawmakers it had revoked last week a decision to extend water concession deals with the two utilities until 2037. The existing concessions will expire in 2022.
Congressman Carlos Zarate noted that even without the loan factored in, the two utilities were “already claiming a 100 per cent increase in rates” as a result of the revocation.