MANILA, Philippines – The Belgian embassy has confirmed that the P18.7-billion Laguna Lake rehabilitation project enjoys a guarantee from Brussels through its export credit facility.
In a letter dated June 10, 2010, Ambassador Christian Meerschman told former Environment Secretary Horacio C. Ramos that “BNPP-Fortis is making available on ONDD-covered export credit facility the funding for the Laguna Lake rehabilitation project.”
Meerschman’s letter stated that “the ONDD or Office National du Ducroire is the Belgian Public Export Agency. The ONDD was founded in 1921 by the Belgian State and is acting as an autonomous government institution enjoying Belgian State Guarantee.”
The Belgian ambassador’s June 10 letter to Ramos supersedes a letter used by detractors of the project to assert that the Laguna Lake Rehab project has no official support from the Belgian government and would not qualify for coverage under the Official Development Assistance Act.
The Belgian embassy has also explained that “this Export Credit Facility complies with Republic Act 8182/Official Development Assistance Act of 1996 containing a minimum grant element of 25 percent as defined in the Philippine Act.”
The clarification from the Belgian embassy should end the dispute between supporters of the project and those who oppose it.
Supporters of the Laguna Lake Rehab project wrote President Aquino last Sept. 13 to urge the government to proceed with the dredging of the 94,900-hectare lake, the deepening of its navigational channels and the establishment of a ferry system with fishports to perk up fisheries, transport and trade.
Finance Secretary Cesar Purisima had suspended the project following the objections raised by Sen. Franklin Drilon, who chairs the Senate committee on finance.
Drilon claimed dredging projects are graft-ridden and called for an investigation of the project.
The government is funding several dredging projects in Luzon, Visayas and Mindanao.
The proposed General Appropriations Act for 2011 allocates P680 million for the Bicol River Basin Project (BRBP) to reduce flooding in the low-lying areas of Camarines Sur.
Petron Corp., together with the Metro Manila Development Authority (MMDA) is undertaking a project to dredge the Marikina River to avoid a repeat of the tragic Sept. 26, 2009 floods brought about by Typhoon Ondoy which killed scores of people and damaged properties worth billions.
The Makati City government is undertaking projects to dredge major creeks and waterways in the city in preparation for the rainy season and the expected flurry of storms due to La Nina.
Last year, the task force for the Mindanao River Basin Project (MRBP) was created to oversee the development and rehabilitation, particularly dredging, of Rio Grande de Mindanao River and Tamontaka River.