The Philippines’ water regulatory agency yesterday imposed a fine of more than 1bn pesos ($21mn) to a distribution company for a supply shortage that left 1.2mn people without water for days in March.
The Metropolitan Waterworks and Sewerage System (MWSS) said Manila Water Company Inc failed to comply with the concession agreement for servicing parts of the capital.
Manila Water, one of two companies awarded concession contracts for water distribution in the capital region, was directed under MWSS’ order to pay a penalty of 534mn pesos and set aside a fund of 600mn pesos for the development of a new water supply source.
The company said in a statement that it held itself “accountable for our inability to provide our consumers with the usual uninterrupted water service” and that it would comply with the directive.
Last month, 1.2mn customers of Manila Water had no water supply or low water pressure for at least one week due to a supply shortage, which the company blamed on decreasing water levels from its reservoir amid a dry spell.
MWSS administrator Reynaldo Velasco said the water crisis in March highlighted the need to develop new water sources and to prepare strategic allocations for water supply to concessionaires.
“The water shortage was an eye-opener,” he said, adding that the new MWSS board inherited lingering problems from the previous administration.
“We are on a catch up mode and it’s only this administration under President Rodrigo Duterte that we have seriously put on track a realistic and doable water security roadmap to ensure adequate water supply,” Velasco added.
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