Malacañang today said President Rodrigo Duterte is giving options for water concessionaires to accept the new contract or face cancellation of their existing ones.
Presidential spokesman Salvador Panelo warned that the chief executive will cancel the existing water contracts and mandate the nationalization of water services in their respective areas of operation should the water distibutors -Maynilad and Manila Water- junk the new deals.
“Wala pang takeover (there is no takeover yet). That’s still constitutional. But the government can take over public facilities in case of a national emergency,” Panelo told CNN Philippines.
He pointed out that accepting the new contract will not guarantee that they would be free from charges for crafting the alleged onerous contracts.
The new water distribution agreement which was crafted by the Solicitor General and Department of Justice will replace the existing concession deal which the president deemed onerous and lopsided.
