MWSS, San Miguel near deal on proposed Laiban Dam project

MANILA, Philippines - The Metropolitan Waterworks and Sewerage System (MWSS) hopes to have a signed agreement with San Miguel Bulkwater Co. (SMBWC) on the controversial Laiban Dam project within the first quarter this year, MWSS administrator Jose Diosdado Allado said.

In a briefing late Thursday, Allado said there is a need for the construction of the Laiban Dam as the demand for water gross and as supply dwindles due to the adverse effects of climate change.

According to Allado, “kung meron tayong Laiban, di tayo nangagapa ng tubig ng ganito. (If we had Laiban, we wouldn’t be searching for water.) We have been saying from the beginning that the main reason and imperative for pursuing Laiban is water security. Ninety-seven percent of the eggs are in one basket, we’re trying to develop another basket para may pagkukunan pa tayo. Now that the basket is drying up, now we’re all groping for water.”

Allado said SMBWC “is in the process of complying with the procedural requirements for the submission.

Allado is hoping that a deal could be concluded “as soon as possible, but it all depends on the compliance of San Miguel. But once they fully comply, we will act.”

Allado said that “if San Miguel complies with the requirements, within the quarter, that will be a done deal, it will be signed.” He said the SMBWC proposal is with the joint venture selection committee.

Allado is confident that once an agreement with SMBWC is signed, the construction of the Laiban Dam will finally be able to proceed.

“If we sign the JV contract, no more (obstructions),” Allado said, adding that if there are any objections they should be raised now.

“I’d like to hear the voices of all those people who were opposing Laiban now, I will see more people advocating for Laiban behind me than those opposing me,” Allado said.

SMBWC submitted an unsolicited proposal for the construction of the Laiban dam. The proposal has been criticized because of a controversial “take-or-pay” provision which would have consumers shouldering the cost of water from the dam whether or not they actually use the supply.

The proposed facility, which the MWSS estimated would cost P70 billion, would be the biggest infrastructure project in the Philippines.

Once completed, it would add 1,900 million liter per day to the water supply of the capital region, which is presently around 4,000 million liter per day, and surrounding provinces to meet a projected shortfall of 1,600 million liter per day by 2015.

With the dam, officials also hope to ease Metro Manila’s reliance on the 41-year-old Angat dam, which is also used for irrigation and power generation.

MWSS said San Miguel’s was the only offer on the table.

The water utilities regulator is entertaining SMBWC’s unsolicited offer because of the urgency to put up the project by 2010 and complete it by 2015 to meet the projected supply shortfall.