Quezon City—(PHStocks)—East Zone concessionaire Manila Water Co. Inc. (PSE: MWC) has formally filed a Dispute Notice with the International Chamber of Commerce challenging the tariff determination recently released by the Metropolitan Water Works and Sewerage System (MWSS). The issuance of the Dispute Notice officially commences the arbitration process.
Manila Water has decided to go into arbitration after MWSS, in its decision, cut away significant programs for building and maintaining water and wastewater systems in the East Zone, which will severely compromise and impair the former’s ability to fulfil its service obligations to its customers.
The Concession Agreement (CA) between MWSS and Manila Water provides for a dispute resolution called arbitration to resolve disagreements, disputes, controversies or claims arising out of or relating to the CA or interpretation or any arrangements or the breach, termination or invalidity (including all decisions by the Regulatory Office with respect to the Concession), which cannot be resolved through consultation or negotiation among the parties.
The Arbitration Panel, also called the Appeals Panel, shall be appointed and will conduct proceedings in accordance with the arbitration rules of the United Nations Commission on International Trade Law.
The panel will be composed of three members: one member appointed by Manila Water, another member appointed by MWSS, and the third member, the Appeals Chairman, appointed by the President of the International Chamber of Commerce.
Until the Appeals Panel arrives at a final decision on the tariff determination, existing water rates shall remain in effect.