Lopez Holdings

 

Maynilad seeks continuing viability of concession
Benpres Holdings Corporation today disclosed that Maynilad Water Services, Inc. served notice to the Metropolitan Waterworks and Sewerage System (MWSS) requesting MWSS to fulfill its obligations under Amendment No. 1 of the concession agreement to ensure the viability of the concession.

In a Notice to the MWSS dated November 5, Maynilad asked the MWSS to perform its obligations, notably, to enter into an agreement with Maynilad on the action plan on service targets, the rates to be implemented in January 2003, and the issues to be addressed on the concerns of Maynilad's lenders which constitute the main elements of Amendment No. 1, signed in October 2001.

The deadline for the execution of the agreement that will resolve the above issues, originally set for January 3, 2002, has been repeatedly extended by the MWSS Board. The subsequent deadlines set for June 30, July 31 and October 31 this year have also lapsed. Maynilad declined any further extension of the latest deadline when it lapsed last week.

Maynilad is also seeking the full implementation of the forex loss recovery mechanism approved by MWSS last year under Amendment No. 1. This was among the appropriate measures agreed upon after the Asian financial crisis threatened the concession's sustainability.

Maynilad is a joint venture among Benpres Holdings Corporation (59%), Ondeo (20%) and Lyonnaise Asia Water Ltd. (20%). The sponsors have re-affirmed their steadfast commitment to the project. Maynilad emphasized that it is dedicated to continuing to serve its customers.

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Lopez Holdings Corporation 
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