CEBU Manila Water Development, Inc. (CMWD) has terminated its water supply contract with Metropolitan Cebu Water District after more than 10 years, Manila Water Co., Inc. announced on Monday.
In a disclosure to the stock exchange, Manila Water said that the termination became effective on Dec. 1.
The company did not provide additional details regarding the terminated contract.
CMWD is a joint investment of Manila Water Consortium, Inc. and the provincial government of Cebu. Manila Water Consortium, Inc. is a subsidiary of Manila Water Philippine Ventures, Inc., a wholly owned subsidiary of Manila Water.
Manila Water entered into a joint investment agreement with the provincial government of Cebu in 2012 for the development, operation, and maintenance of a bulk water system that will supply a minimum of 35 million liters per day of potable water.
Meanwhile, in an e-mailed statement, the company said that it has suspended its excavation activities in major access routes within its service area.
It said that this is in compliance with the memorandum circular issued by the Metropolitan Manila Development Authority, which orders the temporary suspension of road works in major roads in Metro Manila, such as road reblocking, pipe laying, and road upgrading activities “as part of the efforts to alleviate congested traffic during the Christmas season.”
“Despite this, Manila Water assures its customers that water service will remain 24/7, and the company will still be prompt in responding to their water supply and sanitation needs and concerns, as activities related to the installation of new water service connections and the conduct of emergency leak repairs are exempted in the said memorandum,” the company said.
At the local bourse on Monday, shares of Manila Water went down by P0.16 or 0.89% to close at P18.20 apiece.
The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera