The Metropolitan Waterworks and Sewerage System Board Resolution No. 2008-115 dated June 17, 2008, grants Maynilad Water a Foreign Currency Differential Adjustment (FCDA) for the 3rd Quarter 2008 equivalent to –1.72% of the Average Basic Charge of P23.05 per cubic meter or –P 0.40 per cubic meter. This adjustment takes effect fifteen (15) days after publication.
Due to the depreciation of the peso, the FCDA per cubic meter amounting to –P0.62 in the previous quarter is adjusted to –P0.40 for the 3rd Quarter 2008, resulting in a net adjustment of P0.22 per cubic meter.
FCDA is a tariff mechanism granted to Maynilad to recover or compensate for fluctuations in the foreign exchange rates. Maynilad pays foreign exchange denominated Concession Fees to the MWSS, as well as loans taken for service improvement projects. The FCDA mechanism is based on the principle of “no over or no under recovery”.
Maynilad's concession area covers the cities of Manila (all but portions of San Andres & Sta Ana), Quezon (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Ave: the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Hi-way), Caloocan, Pasay, Paranaque, Las Pinas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila ; Cavite City, and the towns of Bacoor, Imus, Kawit, Noveleta and Rosario, all in Cavite Province.
