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Bloomberg
Philippine President Rodrigo Duterte is giving Manila water providers the option of accepting new contracts written by the government — or see the state take over in areas where they operate.
Duterte decided to offer new agreements to Manila Water Co and Maynilad Water Services Inc after being presented with legal options on the water contracts at a Monday night Cabinet meeting, spokesman Salvador Panelo said in a briefing on Tuesday. He added that the terms will be “very different†from those in the existing contracts, which Duterte said contained “onerous†provisions.
“Should they refuse to accept the new agreements, the president will order the cancellation of the water contracts, order the nationalisation of water services in their respective areas of operations and prosecute all of those involved,†Panelo said.
Later on Tuesday, Duterte said he considers the original contracts with the water providers to be “null and void†because there are “so many provisions that infringe†on Philippine laws.
“I have this draft. Either they accept it or not,†Duterte said at a televised briefing. Justice Secretary Menardo Guevarra earlier said that a court order is needed to rescind the contracts.
Manila Water rose 12.3% at the close on Tuesday, while Maynilad owners DMCI Holdings Inc. and Metro Pacific Investments Corp. were up 4.3% and 4% respectively. The Philippine benchmark stock index rose 0.6%.