MANILA — Maynilad Water Services Inc has signed the amendments to its revised concession agreement (RCA) with the Metropolitan Waterworks and Sewerage System (MWSS), its parent Metro Pacific Investments Corp said on Thursday.

The amendments to the revised RCA were signed on May 10, MPIC said in a disclosure to the stock exchange.

"The amendments are intended, in part, to align some of the RCA provisions with the revised implementing rules and regulations of the Build, Operate, Transfer Law, consistent with the government's efforts to reinvigorate public-private partnership," the company said.

MPIC said the amendments included the following:

• Adjustment in the consumer price index factor to 3/4 from 2/3 of the percentage change in the CPI for the Philippines
• Reinstatement of the Foreign Currency Differential Adjustments (FCDA), but only to the MWSS loans that are being and will be serviced by Maynilad, principal payments for drawn and undrawn amounts of Maynilad's foreign currency denominated loans existing as of June 29, 2022
• Introduction of a modified FCDA for Maynilad loans contracted after June 29, 2022, but which mechanism may be availed of only when there is an extraordinary inflation or extraordinary deflation of the Philippine peso, and the amount that may be recovered is capped
• Exclusion of certain events from what may not be considered as material adverse government action
• Deletion of the composition and decisions of the regulatory office from what may not be subject to arbitration

In 2022, then President Rodrigo Duterte signed a law granting another 25-year franchise for Maynilad and Manila Water, following disputes.

Maynilad services the west zone area of Metro Manila and parts of Cavite.

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