"Maynilad held its stockholders meeting last Monday and the MWSS representatives were elected to the board," Finance Undersecretary in-charged of Maynilad privatization Gabriel Singson Jr. said.

"But the formal appointment of a financial advisor, election of the chairman and other officers will still be tackled in a special board meeting tomorrow (January 12)," Singson added.

The DoF official said earlier that Maynilad would reassemble this week to appoint the financial advisor for the sale of state rights in the water utility previously held by Benpres Holdings Inc.

Investment banker ABN AMRO is one of the pre-qualified financial advisors for the second privatization of Maynilad. The government will overhaul the Maynilad board before it sells its rights to 84 percent of the company by March.

The Privatization Council, which approved the sale, said the transaction would be scheduled early this year. It will be one three big-ticket items that would be privatized in the first three months or before April. "We will launch Maynilad first," Singson said.

The council headed by Singson approved the plan to completely revamp the Maynilad board with six seats reserved for the government, out of twelve. In the meantime four seats will be allotted for private sector members and two seats are for independent directors.

By privatizing Maynilad, the government avoids paying .7 million, which it is required to provide. This is million financial assistance and .7 million subscription fees.

Benpres had control of the 84 percent shares but it was transferred to the state after a court-approved rehabilitation plan. This involved the west zone of the MWSS.

Under the Maynilad debt and capital restructuring agreement, government-owned MWSS will have to again borrow million for Maynilad expenses either from the World Bank or a government financial institution.