Manila Water Shares Affected by Water Concessionaire-PH Government Issue
MANILA WATER SHARES – The shares of the said water concessionaire took its biggest drop amid the issue with the Philippine government.
Previously, speaking at the Malacañang Palace, President Rodrigo Roa Duterte released warnings against the water concessionaires in the country. They are the Manila Water and the Maynilad.
The President was very angry over the agreement between the government and the water concessionaires. According to him, it is unfair on the part of the PH gov’t as it has to pay for the losses of the water concessionaires.
Pres. Duterte stressed that they are just distributors of water which belongs to the people. Following an international ruling, the government is ordered to pay Php 7.39 billion to the Ayala-led water concessionaire and Php 3.4-billion to Maynilad.
Pres. Duterte warned not to extend the agreement between the Philippine government and the water concessionaires. Amid it, the water concessionaires warned that higher water rates may come soon.
Recently, there is an update regarding the Manila Water shares amid the issue of the water concessionaires with the Philippine government. Based on a report on ABS-CBN, the shares took its biggest drop.
The shares went down to P6.77. It dropped for almost 39% which is considered as its biggest drop according to Bloomberg Data. With regards to the losses of the water firms, together with Maynilad, around $2 billion or Php 101 billion was lost.
The shares of Maynilad went the opposite side. It increased by 0.06% to P3.11. Currently, the negotiation over the deal between the government and the water concessionaires is ongoing.
Based on the report, the Metropolitan Water Sewerage System (MWSS) only revoked the board resolution that extend the water concessionaire beyond 2022. With regards to the contract, it is still existing and active.
“Ibig sabihin po nun, tuloy-tuloy pa rin po, hindi pa po canceled ang extension hindi pa po kanselado ang kontrata,” MWSS Chief Regulator Patrick Ty told DZMM.