Group seeks transparency in Laiban Dam project

MANILA, Philippines - PSE Disclosure Various Green Convergence for Safe Food, Healthy Environment and Sustainable Economy, a coalition of more than 40 organizations nationwide, has asked the Metropolitan Waterworks and Sewerage System (MWSS) to shed light on its alleged hasty award of the $1.1-billion Laiban Dam project in Tanay, Rizal to San Miguel Bulk Water Co. (SMBWC).

This followed concerns raised by former senator and now Economic Planning Secretary Ralph Recto on the project, particularly on the “take or pay” provision in the unsolicited offer of SMBWC, a unit of conglomerate San Miguel Corp. He said this provision is a form of direct government guarantee.

The Laiban Dam project is one of the biggest infrastructure projects ever to be launched by the Arroyo government and MWSS’s largest single project in its 131-year history.

In a statement, Green Convergence sought transparency from the MWSS, saying the latter ignored widespread objections of various stakeholders, particularly several groups of indigenous people who will be displaced by the project.

“We question the process by which the bids are made. We demand more discussions and a thorough review should be undertaken before such a project of significant impact will take place,” said Dr. Angelina P. Galang, coordinator of the Green Convergence, in a letter to MWSS Administrator Diosdado Jose M. Allado.

Galang said the anticipated costs should be reflected in the required, updated environmental impact assessment and environmental compliance certificate of the project prior to its approval and award to any bidder.

“Since MWSS is supposed to uphold public interest and in the spirit of good governance and transparency, we ask most urgently that all issues surrounding the Laiban Dam project be made public and that the various interests and rights of stakeholders, especially the indigenous peoples of Tanay and Quezon should be heard and protected without delay,” Galang stressed.

A “take or pay” provision binds the buyer of water supplied by Laiban Dam to pay even for water supply it has not consumed.

SMBWC and its foreign partner are hoping to enter into a cooperative joint venture with the MWSS to secure financing and undertake the engineering and design, construction, operation and maintenance of the Laiban project. MWSS has received a lot of brickbats from various organizations for allegedly fastracking the conduct of bids for the project by giving bidders only five days or until July 8 to submit their formal intention to challenge SMBWC’s bid.

Should the joint venture materialize, the MWSS stands to hold a 10 percent interest in the venture.The Laiban Dam has a potential to provide 1,900 million liters a day of water or 22 cubic meters a second supply to consumers in the metropolis who use up an average of 500 MLD.

The construction of the Laiban Dam is also expected to alleviate the recurring energy crisis in Luzon since it could generate 153 megawatts per hour a year. 

Earlier studies showed that the quality of fresh water resources has been steadily declining and is compounded by water scarcity.

San Miguel said the proposal is in line with its thrust to invest in strategic industries such as power, oil and gas, and water.

The conglomerate has been aggressively venturing out of its core food and beverage business following a string of asset disposals.