MANILA, Philippines - Diversifying conglomerate San Miguel Corp. said it might reconsider pursuing the Laiban Dam project, which it had proposed to undertake through a joint venture with the state-run Metropolitan Waterworks & Sewerage System (MWSS).
It would be recalled that San Miguel had deferred the execution of any agreements relating to the Laiban Dam project with the government amid allegations of non-transparency. Several organizations found the terms, particularly the take-or-pay provision in the draft agreement between the food, drinks and packaging firm and the MWSS, to be disadvantageous to the public.
A take-or-pay provision binds the buyer of water supplied by Laiban Dam to pay even for water supply it has not consumed.
“We’re still interested. We may look into it,” San Miguel president Ramon Ang said when asked whether the company was still interested in pursuing its $1-billion unsolicited proposal to build the Laiban Dam in Tanay, Rizal as an alternative source of water supply for Metro Manila.
MWSS earlier said no other investor had come forward to challenge San Miguel’s proposal which aims to provide an average 1.83 billion liters a day of water supply for about 5.5 million people or 690,000 households in southern Metro Manila.
A shortfall of 1,600 MLD is expected by 2015.
The MWSS previously said it could do the Laiban Dam project on its own but would need the government’s assistance in the form of a loan.
San Miguel’s announcement of putting the Laiban Dam project on hold was due to the negative publicity the conglomerate has been getting. It also came on the heels of San Miguel’s acquisition of the 620-megawatt combined-cycle power plant in Limay, Bataan.
San Miguel has earmarked around $2 billion for its energy projects.
Ang earlier said San Miguel has done feasibility studies for the Laiban Dam over the past two years.
If the project is awarded to them, San Miguel would be teaming up with Toyota Tsusho, one of the largest trading companies in Japan, and Tokyo-based financial services group Orix Corp. to help carry out the project.