Water crisis in Metro Manila

[12] Duterte ordered Solicitor General Jose Calida and Finance Secretary Carlos Dominguez III to come up with a new water concession contract that is favourable to the public and the government.

The Ayalas own the controlling stake in Manila Water, while a company being run by Manuel V. Pangilinan is a shareholder of Maynilad along with the Consunjis.

According to the Duterte administration, at least 12 of the contract's provisions prevent the government from interfering in setting rates, and provide generous performance guarantees for the companies.

Justice Secretary Menardo Guevarra, who is leading the review of the contracts, said public interest is the key consideration.

"[13] Investors fear the water dispute could pave the way for the state to probe other agreements it deems "disadvantageous," threatening the financial viability of companies involved, James Su, Fitch Solutions' infrastructure analyst, wrote in a research note in December.

This has come due to foreign investors' inherent sensitivity towards countries' reputations in honoring contracts, said John Forbes, a senior adviser of the American Chamber of Commerce of the Philippines.

Economic Planning Secretary Ernesto Pernia stated that the water dispute "is an isolated incident" that will not affect other public utilities in Metro Manila.

[17] Dr Cecilia Tortajada,[18] a senior research fellow at the Institute of Water Policy of the Lee Kuan Yew School of Public Policy (LKYSPP), said: "Singapore has developed very quickly, so it has the knowledge of advanced countries but it also has knowledge of how to solve problems of developing countries, because you still have the workforce that worked (and solved problems) in the 1970s".

Firstly, long-term planning and realisation of the importance of water as a strategic resource at the highest levels of government," Dr Tortajada added.

She added that the setting up of desalination plants would not be enough; that the Philippines' water problems could only be solved if all levels of government prioritised the issue.