Maynilad expanded access but was unable to reduce water losses, no longer paid concession fees to the government and went bankrupt in 2003. It was temporarily taken over by the government, sold to new investors in 2007 and performance has improved since then. Manila Water initially fought, but increased its contract return in 1998 through arbitrage, improved performance, and in 2003, the International Finance Corporation (IFC) granted a loan and participated in the company, followed by an IPO of shares on the Manila Stock Exchange in 2004 and local currency bond sales in 2008. As such, Salamat said, the government, through MWSS, gives the two private water dealers the opportunity to renegotiate and agree on the new terms of the concession contract. In December 2008, the Philippine Supreme Court ordered that a number of government authorities, including MWSS and the two dealers, clean up Manila Bay. The court called the bay “a dirty and slowly moribund immensity, mainly because of the abominable official indifference of people and institutions.”  As a result of the court order, dealers developed ambitious investment plans for sewers and wastewater treatment. In May 2012, the World Bank approved a $275 million loan for a Manila Wastewater Metro water management project. The loan was transferred to both dealers through the Land Bank of the Philippines.  Disputes between the dealer and MWSSs are settled by international arbitration, with a panel formed in accordance with the rules of the concession agreement and the decision of which becomes binding for both parties once it has been decided. The obligations of both parties for unilateral early pre-feeding are also clearly defined in the concession agreement. Both concession contracts were 25 years long and included coverage and quality of service objectives.
One goal was to increase water coverage at Metro Manila to 96 percent by 2006, another to increase sewer access to 66 percent in Manila West and 55 percent in East Manila until the end of concessions. There were no contractual objectives to improve efficiency; The financial models of the companies, which set the tariffs in their bids, were the result of a rapid reduction in water losses and a reduction in staffing levels.