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Maynilad Water Services Concession Agreement

Except in prolonged drought, the Angat Dam provides 4.1 million cubic metres of water per day to Metro Manila. The per capita water consumption at Metro Manila is about 100 litres per day. [12] Even if it is based on 50 per cent of water distribution losses, the Angat Dam can supply more than 20 million people, compared to a current population of 12 million. However, in the event of severe drought, water supply is not sufficient. During the 1998 drought, Metro Manila`s water supply had to be cut by 30% and the water supply for irrigation was completely reduced. [13]:127 Since the mid-1990s, MWSS is being built of a new dam, the Laiban Dam, to supply Manila with water. In addition to the need to guard against the risk of drought, this is justified by an expected increase in per capita domestic demand and an expected increase in demand for commercial and industrial water. Civil society groups reject the dam and say it is not necessary, that it would cause social and environmental damage and that the mwSS system is “obsessed” with the dam. Construction of the dam has been delayed several times due to lack of resources. [12] In the end, the government maintains clear oversight of the implementation and management of the concession agreement, namely the regulatory office of the status of a company operating under the conditions of a market economy, which is supposed to represent the interests of the customer, while the control of the provision of service obligations, the guarantee of the affordability of the service and the financial viability are assured. The property of the water and sewerage base is retained by MWSS. All additional assets in which the dealer has invested during the term of the concession will be transferred to MWSSS at the end of the concession period. In accordance with the rebasing process, all inputs to the pricing process – service obligations, expenses, yields to the implementation of the new tariffs – are approved by MWSS.

In East Manila, between 1997 and the end of 2009, the population more than doubled from 3 million to 6.1 million (2009), and the proportion of access to tap water increased from 49% to 94% (2006). [23] [40] In West Manila, Maynilad claims to have connected 600,000 people to the water supply system by 2003, many of them poor in slums. [20] the proportion of customers with 24 hours of water supply increased from 32 per cent in 2007 to 71 per cent at the beginning of 2011. [41] The proportion of the population with access to tap water increased from 67 per cent in 1997 to 86 per cent in 2006. [23] [failed verification] The initial objective of the contract was to have 100% access by 2007. [18]:19 The two private companies had to first reserve a performance obligation, which could be called by MWSS if the companies did not meet their obligations. Maynilad had recorded $120 million because it had a larger share in the concession and former MWSS debt, and Manila Water $80 million. [10] After the contract came into force, basic tariffs initially fell significantly, from 8.6 pesos/m3 in all areas, to 5 pesos/m3 in the western zone and to only 2.3 pesos/m3 in the eastern zone.

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