Higher water rates loom as CA affirms Maynilad?s arbitral win
The Court of Appeals has upheld a lower court?s decision that confirmed a decision of an international arbitration panel that awarded Maynilad Water Services Inc. P3.4 billion as payment for delayed tariff hike.
The CA ruling was in response to the appeal filed by the Metropolitan Waterworks and Sewerage System.
In August 2017, the Regional Trial Court of Quezon City issued a decision, granting Maynilad?s petition for confirmation and enforcement of the arbitral award.
Maynilad earlier said water rates would increase by 10 percent once the RTC decision becomes final and executory.
?While the MWSS may (still) appeal to the Supreme Court the CA decision affirming the RTC order, this appeal should not stay the immediate implementation of the final Award,? Maynilad said.
The final award upheld Maynilad?s entitlement to the inclusion of corporate income tax in its tariff, and the 13.41 percent rebasing adjustment that Maynilad proposed from Jan. 1, 2013 to Dec. 31 last year.
Maynilad president Ramoncito S. Fernandez said the decision ?reinvigorates investor confidence in the public-private partnership program of the government, and strengthens confidence in the mechanisms for enforcement of arbitral awards.?
? This also ensures the continued implementation of Maynilad?s capital expenditure projects that are intended to benefit further our customers,? Fernandez said.