Metropolitan Waterworks and Sewerage System (MWSS) has approved a slight tariff adjustment for Manila Water Co., following the implementation of a Foreign Currency Differential Adjustment (FCDA) under the utility’s concession agreement.
In Board of Trustees Resolution No. 2026-032-RO dated March 12, MWSS authorized the water concessionaire to implement an FCDA equivalent to 0.76 percent of the 2026 average basic charge of P50.70 per cubic meter, or about P0.39 per cubic meter.
As a result, the tariff will increase by an average of P0.04 per cubic meter starting April 1.
The FCDA is a mechanism under the Amended Revised Concession Agreement that allows water utilities to reflect foreign exchange movements in their tariffs. It is designed as a pass-through charge to account for foreign exchange losses or gains arising from the company’s payments on specific concession loans denominated in foreign currency.
Because the adjustment merely reflects currency fluctuations tied to these loans, the mechanism does not affect Manila Water’s projected net income.
