MANILA, Philippines – President Rodrigo Duterte recently signed laws granting 25-year franchises to Maynilad Water Services Inc. and Manila Water Company, Inc.
Duterte signed the franchise laws on December 10 last year, titled Republic Law # 11600 and Republic Law # 11601, copies of which were released on Friday.
Maynilad currently serves the western area of ââMetro Manila and Cavite, while Manila Water serves the eastern area of ââMetro Manila and Rizal.
Under the laws, the franchise granted to the two water concessionaires will be valid for 25 years “unless canceled or revoked earlier by Congress when the public interest demands it or when the concessionaire fails to comply. reasonably to regulatory standards “.
“This franchise will be deemed to be revoked ipso facto in the event of the concessionaire’s inability to operate continuously for two years, or in the event of default, as provided for in the concessionaire’s concession contract”, specify the laws.
The laws also require that the two companies “keep the national, provincial, municipal and municipal governments of the Philippines free from any claim, liability, demand or action resulting from accidents causing injury to persons or damage to property, during construction or the operation of the concessionaire’s water and sewer facilities.
The laws further contain a provision on the engagement of beneficiaries to provide and promote the creation of employment opportunities.
Recipients are required to “create employment opportunities and accept on-the-job interns in their franchise operations”, provided that “priority is given to residents of the place where the recipient performs their duties or exercises his activities “.
In addition, beneficiaries âmust comply with applicable labor standards and the right to allowances under applicable labor laws, rules and regulations and similar provisionsâ.
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