In early November, the two water dealers decided to forego their water price increases for 2021 as part of the adaptation of the tariff reference system approved by the Metropolitan Waterworks and Sewerage System (MWSS) as an aid to their customers. THE two water suppliers of METRO Manila are awaiting the opening of negotiations with the government after the Ministry of Justice confirmed that President Rodrigo R. Duterte had approved the proposed contract for their water concession. Connection rates for water or sewer connections have also increased significantly. Thus, residential connection costs rose from 3,722 pesos in 2000 to 7,187 pesos in 2008 in the Eastern Zone. [52] Concessions would be awarded to pre-qualified bidders who submit the lowest rate, that is, the tendering process. The Philippine government expected efficiency gains to be so large that water tariffs would fall, based on the experience of the 1993 Buenos Aires concession, despite the need to finance huge investments and pay down old debts. The rate reduction was significant for political acceptance, and the government anticipated that the rates in the bids should not be higher than the rates charged at the time. [13]:42-44 Four pre-qualified bidders submitted eight bids, each for both concessions. Each bidder was a joint venture between an international company and a local company. If the same company made the lowest bid for both concessions, the second lowest bidder would get the other area. Financial offers were opened on January 23, 1997 and one bidder submitted an extremely low bid of only 26 and 29 per cent of east and west Manila rates. Experts asked the company if the offer was serious, which Was confirmed by Manila Water, led by the Philippines Ayala Group.

Manila Water was the only company to submit a lower bid than West Manila. The Ayala Group owned considerable real estate in East Manila and perhaps wanted to be sure of winning the Eastern concession. Three other companies submitted bids ranging from 50 to 60 per cent of pre-privatization tariffs with slightly lower tariffs for West Manila compared to East Manila, reflecting their assumption that West Manila would be more profitable when 90 per cent of the old debts had been allocated to it. [13]95-98.133 Manila Water has not invested in the development of the system in its eastern zone. [23] It focused on reducing water without revenue and initially borrowed only small amounts in local currency. She has applied competitively and has earned the trust of former MWSS employees who have been trained in relevant fields. Few high-level positions have been filled by outsiders seconded by the parent company Ayala or its foreign partners. Manila Water used a “land management” approach to reduce water, under which decentralized operating units were responsible for decisions on appropriate measures. Staff evaluation and compensation were related to their performance. [16] [24] Despite the success of its management, the Manila Waters concession was unable to survive because of the extremely low rates it was required to collect.