The Philippine Online Chronicles

The Department of Finance (DOF) has extended Manila Water Co. Inc.'s water distribution contract in Manila by 15 years.

The company's original service contract, GMANews.tv said, was set to end in 2022. It is now set to end in 2037, a bid approved in April by the Metropolitan Waterworks and Sewerage System (MWSS).

At the time, however, GMANews.tv noted, it still needed the DOF's approval. In May, the DOF said it "supports the decision of MWSS Board to extend the concession contract of Manila Water," PNA said.

According to abs-cbnNEWS.com, Manila Water is prepared to increase its total investment to P450 billion until 2037. It primarily serves Manila's east sector.

However, a May report by GMANews.tv said, Manila Water will now also pay 30 percent higher concession fees to the government. The company's annual payment to the government reached P50 million in 1997 and last year, it reportedly remitted close to P200 million to MWSS.

Manila Water said in a disclosure to the Philippine Stock Exchange released October 22 that it has officially received the documents extending its contract and will now proceed to fulfill its obligations to provide water to its customers.