Maynilad Water Services Inc.’s Singapore-based counsel formally confirmed yesterday afternoon that the decision of the Singapore High Court, (orally) issued on 4 September 2018, dismissing the Philippine Republic’s Setting Aside Application has become final as of 4 October 2018.
The decision became final after the Philippine Republic has decided to no longer appeal the dismissal of its Setting Aside Application to the Singapore Court of Appeal within 30 days from 4 September 2018, or until 4 October 2018.
Aside from dismissing the Setting Aside Application, the Singapore High Court also ordered the Philippine Republic to pay Maynilad S$40,000 by way of costs.
To recall, the Philippine Republic filed the Setting Aside Application on 13 February 2018 to set aside the First Partial Award dated 24 July 2017 (the Arbitral Award) which was issued by a unanimous three-man Arbitral Tribunal in the arbitration between Maynilad and the Republic.
The Arbitral Award upheld the validity of Maynilad’s claim against the Undertaking Letters issued by the Philippine Republic, through the Department of Finance. The Arbitral Award ordered the Philippine Republic to compensate Maynilad for its revenue losses, commencing on 11 March 2015 onwards, resulting from the refusal of the MWSS to implement Maynilad’s tariff adjustment for the period 2013 to 2017, which tariff adjustment includes corporate income tax.
Maynilad has expressed great admiration for the efficiency of Singapore’s justice system given the speed with which the Singapore High Court has disposed of the Philippine Republic’s Setting Aside Application.
This latest victory vindicates Maynilad’s position that there are no valid and meritorious grounds to challenge or set aside the Arbitral Award, said Maynilad President and CEO Ramon S. Fernandez.
Maynilad will now work towards an efficient collection of its claim in a manner that recognizes the interest of its various stakeholders including its shareholders and customers, taxpayers and the government.
DMCI-MPIC Water Co., a joint venture between Metro Pacific Investments Corp. (MPIC, PSE: MPI) and DMCI Holdings Inc. (PSE: DMC), owns a majority stake in Maynilad.