April 23, 2014

Maynilad names rep to water arbitration panel

We learned from Metro Pacific Investments Corp (MPI) that its water utility unit has finally nominated Dr. Federico Macaranas as its new representative to an arbitration panel that will settle the company’s tiff with the regulator on the recent tariff adjustment. The regulator has not objected to the nomination so this means that the appeals panel is now deemed complete.

To recall, Maynilad’s former nominee backed out thus delaying further the start of the arbitration proceedings. MPI said Dr. Macaranas has extensive experience in economic/development diplomacy, policy studies, and national competitiveness.

He occupied top diplomatic positions on trade, investment, science and technology policy areas during the Cory Aquino and Fidel Ramos administrations.

Our take: The final resolution of the dispute regarding the recent water tariff adjustment is among the key catalysts for MPI that the market is monitoring. In this light, the formation of the appeals panel is a significant development for MPI as this brings it closer to addressing a key issue that has been weighing on its shares. MPI expects the arbitration proceedings to commence by June or July this year. – WealthSec