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Socioeconomic Planning Secretary Ernesto Pernia expressed belief on Wednesday that investors would understand the action being undertaken by the Duterte administration against the two water concessionaires in Metro Manila.

"I'm sure the investors can understand that there was something fishy or something wrong with the way the concession agreements were handled by the concessionaires as well as the MWSS (Metropolitan Waterworks and Sewerage System), which was the regulator," Pernia, also director general of the National Economic and Development Authority, said a press conference coinciding the 84th NEDA anniversary in Pasig City.

He reiterated the findings of the Department of Justice that the 1997 water concession agreements with Manila Water Company, Inc. and Maynilad Water Services, Inc. were onerous and disadvantageous to the government.

Pernia said it was understandable that in 1997, the Philippines was "at mercy" of investors because of its high risk economy.

"But what should have been done and in conscience of water concessionaires in 2009, the economy was better so there was no need to continue with the same conditions in the concession agreement," he said, adding that the contracts should have been revisited.

In 2009, the Arroyo administration extended the concession agreements with Manila Water and Maynilad until 2037 even if the deals have yet to expire by 2022.

Pernia also acknowledged that President Rodrigo Duterte's pronouncements against Maynilad and Manila Water specifically have been affecting also the investments of the state-run Social Security System and the Government Service Insurance System.

He said there would be "setback" on the investments of SSS and GSIS.

But he hoped that the investments would recover once the contracts with the two water firms are renegotiated.

The Duterte administration refused to pay the P11-billion arbitration award to the two water firms for breach of contracts.

Duterte also wants to renegotiate the contracts. Celerina Monte/DMS