Maynilad files arbitration notice
MANILA, Philippines - Maynilad Water Services, concessionaire for the west zone, has filed a notice of dispute with the Secretariat of the International Chamber of Commerce (ICC) International Court of Arbitration to resolve its row with the Metropolitan Waterworks and Sewerage System (MWSS).
The issuance of the dispute notice officially commences the arbitration process.
Maynilad is contesting MWSS' decision to reject its petition for a water rate increase. MWSS, instead, ordered Maynilad Water to reduce rates by P1.46/cubic meter in the next five years.
The concession agreement between MWSS and Manila Water provides for arbitration to resolve disagreements or dispute relating to the agreement, which cannot be resolved through consultation or negotiation among the parties.
A three-member panel called the Appeals Panel will conduct the arbitration proceedings in accordance with the arbitration rules of the United Nations Commission on International Trade Law.
In case of a major dispute, as in the case of a rebasing dispute, the panel will be composed of three members: one member appointed by Maynilad, one member appointed by MWSS, and the third member, the Appeals Chairman or Presiding Arbitrator, appointed by the ICC Chairman.
Until panel arrives at a final decision on the tariff determination, existing water rates shall remain in effect.