Cebu Provincial Gov’t, Manila Water Move to Resolve Contract Disputes

The provincial government of Cebu and Manila Water Development Corp. (Manila Water) moves to resolve contract breaches related to their 2012 joint investment agreement (JIA) as Manila Water offers Capitol preferred shares.

The preferred shares of 1.44 million that the now gaming and ports tycoon Enrique Razon Jr.-owned Manila Water is proposing to the Capitol will give the provincial government an annual dividend of close to PHP11 million.

Both parties are now looking to resolve the issue following the termination of the contract by the provincial government against the then Ayala-owned water consortium, citing alleged breaches in the agreement.

The JIA of Capitol and Manila Water created the Cebu Manila Water Development, Inc., which supplied water to Metro Cebu–tapping surface water from the Luyang River in Carmen town in the northern part of the province.

Gov. Gwendolyn Garcia with her legal consultants held a meeting at the Cebu Provincial Capitol with officials from Manila Water January 11 and will meet again to come up with a resolution to set the JIA in motion once again. (GFB)