Palace won't budge on cancellation of P18-B Laguna bay dredging

MANILA, Philippines - Malacañang would not budge on its decision to cancel the P18.5-billion Laguna de Bay dredging project despite threats from the Belgian company that it would go to an arbitration court and discourage other foreign investors from coming to the Philippines.

Presidential spokesman Edwin Lacierda said yesterday the contract with Baggerwerken Decloedt en Zoon (BDZ), signed during the Arroyo administration, was different from the Aquino administration’s Public-Private Partnership (PPP) projects. 

Sources said President Aquino has met with the Belgian ambassador to explain why the government could not pursue the project. Quoting the BDZ, reports said a senior official from the Belgian embassy would recommend to the Belgian government and to the European community “to suspend all investments in the Philippines.”

Lacierda said contracts executed during the past administration must be distinguished from those entered into by the present administration.

It would now be up to the proper government departments and agencies to formally inform BDZ about the project’s cancellation, he added.

Talks are circulating that some groups are pushing for the project even if Aquino had already decided against the project, following a thorough review by his economic managers. 

Sources said all the legal and other issues involving the project had been studied to make sure that the government would not have any liability in terminating the project.

Lacierda said his statement on the contract’s cancellation was in response to Laguna Lake Development Authority general manager Rodrigo Cabrera’s pronouncement that the project was only under review.

“There seems to be some confusion on the part of LLDA as to the decision of the President to cancel it,” he said.

Sources said Cabrera received a dressing down from Aquino because of the confusion that his statement created.

Lawyers identified with Executive Secretary Paquito Ochoa Jr. are pushing for the project, including a partner in his law firm, Edward Serapio, sources added.

However, Ochoa’s office said the executive secretary had nothing to do with the project.

Reports said BDZ would pursue international arbitration upon receipt of a formal notice of cancellation after the Philippine government issued a statement that the P18.5-billion Laguna Lake Rehabilitation Project has been terminated.

A Belgian official met with an undersecretary of the Department of Foreign Affairs and the BDZ to discuss the contract, after Malacañang announced that the deal had been canceled, reports added. 

BDZ consultant Arthur Ponce said they were surprised to learn through the media of the project’s cancellation.

In a statement issued through Malacañang yesterday, Cabrera said: “Our marching orders are for the protection, rehabilitation and sustained development of Laguna Lake and we will implement these within the framework envisioned by President Aquino.”

He said he was inadvertently misquoted in an earlier press report, and that the LLDA was presently formulating a comprehensive master plan for Laguna de Bay to address all relevant concerns of stakeholders, Cabrera said.