Philippine regulator repeals utilities’ water contracts after Duterte rebuke

The Philippines’ two largest utilities are servicing a combined 16 million customers, many of whom were affected by the water crisis earlier this year. (AFP)
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Updated 11 December 2019

Philippine regulator repeals utilities’ water contracts after Duterte rebuke

  • Concession agreements with Manila Water Co. Inc. and Maynilad Water Services as ‘onerous and disadvantageous’ to the public
  • Existing concessions will expire on 2022, but were subsequently extended by 15 years

MANILA: The Philippines’ water regulator said on Wednesday it has canceled the 15-year extension of concession deals it signed with the country’s two largest utilities after pressure from President Rodrigo Duterte.
Duterte described the concession agreements with Manila Water Co. Inc. and Maynilad Water Services as “onerous and disadvantageous” to the public, prompting them to be revoked in a move that could turn off investors at a time the government is seeking foreign capital to modernize its infrastructure.
Metropolitan Waterworks and Sewerage System, the country’s regulator, told lawmakers it had revoked last week a decision extending the water concession deals with the two utilities until 2037, sending their shares tumbling more than 13 percent. The existing concessions will expire on 2022.
The firms, which are servicing a combined 16 million customers, secured 25-year concession agreements in 1997, which were extended in 2009 by a further 15 years.
Duterte acted after Manila Water and Maynilad won arbitration cases in Singapore against the government.
The arbitration court in Singapore ordered the Philippines government to pay the utilities a combined 10.8 billion pesos ($212.14 million) in compensation. The companies had said they would forfeit any damage claims to avoid angering the president.
“These companies not only have inefficiently delivered water to the households, but exacted unconscionable amounts from the taxpayers,” Salvador Panelo, Duterte’s spokesman, said in a statement.
The water utilities’ woes display a violation of the sanctity of contracts, Guenter Taus, former president of the European Chamber of Commerce of the Philippines, told Reuters.
“It does not instill investor’s confidence. You can’t just go out and revoke contracts,” Taus said.
The embattled companies’ shares continued their decline on Wednesday, with Manila Water slumping 14 percent.
Maynilad stockholders Metro Pacific Investments Corp. and DMCI Holdings Inc. sank 13 percent and 13.4 percent, respectively.
Manila Water president Jose Rene Almendras told lawmakers the company has yet to study the impact of the regulator’s decision.
“There should be a clean process because we have commitments both in terms of capital expenditures, projects and loans,” Maynilad chief operating officer Randolph Estrellado said.


Bosnia Muslims mourn their dead 25 years after Srebrenica massacre

Updated 4 min 50 sec ago

Bosnia Muslims mourn their dead 25 years after Srebrenica massacre

  • At 1100 GMT, a ceremony laying to rest the remains of nine victims identified over the past year began at the memorial cemetery in Potocari
  • On July 11, 1995, after capturing the ill-fated town, Serb forces killed more than 8,000 Muslim men and boys in Srebrenica in a few days

SREBRENICA: Bosnian Muslims began marking the 25th anniversary of the Srebrenica massacre on Saturday, the worst atrocity on European soil since World War II, with the memorial ceremony sharply reduced as a result of the coronavirus pandemic.
Proceedings got underway in the morning with many mourners braving the tighter restrictions put in place to stem the spread of COVID-19.
At 1100 GMT, a ceremony laying to rest the remains of nine victims identified over the past year began at the memorial cemetery in Potocari, a village just outside Srebrenica that served as the base for the UN protection force during the conflict.
On July 11, 1995, after capturing the ill-fated town, Serb forces killed more than 8,000 Muslim men and boys in Srebrenica in a few days.
Sehad Hasanovic, 27, has a two-year-old daughter — the same age he was when he lost his father in the violence.
“It’s difficult when you see someone calling their father and you don’t have one,” Hasanovic said in tears, not dissuaded from attending the commemorations in spite of the virus.
His father, Semso, “left to go into the forest and never returned. Only a few bones have been found,” said Hasanovic.
Like his brother Sefik and father Sevko, Semso was killed when Bosnian Serb troops led by Ratko Mladic entered the Srebrenica enclave before systematically massacring Bosnian men and adolescents.
“The husbands of my four sisters were killed,” said Ifeta Hasanovic, 48, whose husband Hasib was one of the nine victims whose remains have been identified since July 2019.
“My brother was killed, so was his son. My mother-in-law lost another son as well as her husband.”
The episode — labelled as genocide by two international courts — came at the end of a 1992-1995 war between Bosnia’s Croats, Muslims and Serbs that claimed some 100,000 lives.
So far, the remains of nearly 6,900 victims have been found and identified from more than 80 mass graves.
Bosnian Serb wartime military chief general Ratko Mladic, still revered as a hero by many Serbs, was sentenced to life in prison by a UN court in 2017 over war crimes including the Srebrenica genocide. He is awaiting the decision on his appeal.
Radovan Karadzic, a Bosnian Serb wartime political leader, was also sentenced to life in prison in The Hague.
The Srebrenica massacre is the only episode of the Bosnian conflict to be described as genocide by the international community.
And while for Bosnian Muslims recognizing the scale of the atrocity is a necessity for lasting peace, for most Serbs — leaders and laypeople in both Bosnia and Serbia — the use of the word genocide remains unacceptable.
In the run-up to the anniversary, Serbian President Aleksandar Vucic described Srebrenica as “something that we should not and cannot be proud of,” but he has never publicly uttered the word “genocide.”
Several thousand Serbs and Muslims live side by side in impoverished Srebrenica, a town in eastern Bosnia with just a few shops in its center.
On Friday, the town’s Serbian mayor Mladen Grujicic — who was elected in 2016 after a campaign based on genocide denial — said that “there is new evidence every day that denies the current presentation of everything that has happened.”
Bosnian Serb political leader Milorad Dodik has also described the massacre as a “myth.”
But on Friday, the Muslim member of Bosnia’s joint presidency, Sefik Dzaferovic, said: “We will tirelessly insist on the truth, on justice and on the need to try all those who have committed this crime.”
“We will fight against those who deny the genocide and glorify its perpetrators,” he said at the memorial center where he attended a collective prayer.
In order to avoid large crowds on Saturday, organizers have invited people to visit the memorial center over the whole month of July.
A number of different exhibitions are on display, including paintings by Bosnian artist Safet Zec.
Another installation, entitled “Why Aren’t You Here?” by US-Bosnian artist Aida Sehovic, comprises more than 8,000 cups of coffee spread out on the cemetery’s lawn.
“We still haven’t answered the question why they are no longer here,” she told AFP.
“How could this have happened in the heart of Europe, that people were killed in such a terrible way in a UN protected area? Not to mention the fact that the genocide is still being denied.”