MANILA, Philippines - The National Economic and Development Authority (NEDA) is pushing for a review of the proposed multi-billion peso Laiban Dam joint venture deal between a unit of San Miguel Corp. and the government, Socioeconomic Planning Secretary Ralph Recto said.
However, Recto stressed that NEDA is not blocking the project.
“The NEDA, as part of its work, undertakes due diligence that would include a review of relevant documents,” said Recto, who is also NEDA director-general.
Recto said their concerns have already been relayed to state-owned Manila Waterworks Sewerage System. “It’s up to them to consider these or not,” he said, adding that NEDA supports public-private partnerships in infrastructure development.
The government, Recto said, has had “successful joint ventures with the private sector.”
SMC, through its unit San Miguel Bulk Water Co. Inc. (SMBWCI) has submitted an unsolicited proposal for the P52-billion Laiban Dam project.
The project involves the construction of a dam and water treatment facility in Tanay, Rizal, aiming to address a projected water shortage in Metro Manila by 2015.
The proposed joint venture deal between SMC and MWSS supposedly contains a take or pay provision which virtually meant that government would be guaranteeing the market risks of the private partner.
SMC has already identified its two Japanese partners for the project.
SMC president Ramon Ang said Toyota Tsusho Corp. would be its financial partner, while Orix Corp. will help the conglomerate with the project’s technical aspects.
Toyota Tsusho, is the trading company of the Toyota Group. It was originally established to provide consumer financing for Toyota Automobiles.
Orix, on the other hand, is an integrated financial services group based in Tokyo. It is listed in the Tokyo, Nagoya, Osaka and New York bourses.
It has been providing value-added products and services to both corporate and retail customers. Orix is into leasing, corporate finance, real estate-related finance and development, life insurance, and investment and retail banking.