MWSS imposes fine of $21 million for shortage in water supply

MANILA: The Metropolitan Waterworks and Sewerage System (MWSS), on April 23, imposed a fine of 1 billion pesos (US $21 million) to Manila Water Company Inc, a distribution company, for a supply shortage that left 1.2 million people without water for days in the month of March.

The MWSS said that the Manila Water Company Inc failed to comply with the concession agreement for servicing parts of the capital.

Manila Water which was awarded concession contracts along with another company for water distribution in the Manila city has to pay a penalty of 534mn pesos and set aside a fund of 600mn pesos for the development of a new water supply source, as per directions under MWSS’ order.

The company agreed to comply with the directions of MWSS and said in a statement that it held itself accountable for inability to provide consumers with the usual uninterrupted water service.

Previously in March, 1.2 million people consuming water supplied by Manila Water had no water supply or low water pressure for at least one week due to a supply shortage. The company blamed that the water levels in its reservoir decreased amid a dry spell.