MWSS eyes foreign funds for Laiban Dam project

MANILA, Philippines - The Metropolitan Waterworks and Sewerage System (MWSS) is eyeing foreign financing to push the construction of the $1.3-billion Laiban Dam project.

In an interview with The STAR, MWSS Administrator Diosdado Jose Allado said he has not given up on the Laiban Dam project even as no other interested proponent has come up with an alternate proposal following the withdrawal of San Miguel Bulkwater Corp.’s unsolicited offer.

In fact, Allado revealed he will try to bring up the possibility of financing the Laiban Dam project to the Asian Development Bank in a meeting they will hold this week.

He said while the Laiban Dam project is not in the agenda of the ADB meeting, “I will try to bring it up.”

Allado stressed the need for government to pursue the Laiban Dam project on its own because of the need to increase the water source for Metro Manila.

He reiterated the danger of relying on Angat Dam in Bulacan which state weather and disaster agencies have repeatedly warned could be breached by natural calamities.

A portion of the Angat Dam is located along the West Valley or Marikina Fault, while heavy rains have repeatedly threatened portions of the dam.

At the moment though, the Angat Dam water reservoir is still below its safe normal water level due to the effect of the recent drought and the lack of rains in the area even as the rainy season has commenced.

Allado stressed that government should take the lead in the bulk water sourcing instead of relying on the private sector to control a vital resource and dictate their own price.

“We as the government regulatory body should, thus, have control over the bulk water source,” Allado said.

The $1.3-billion Laiban Dam project, Allado said, could be financed by Official Development Assistance (ODA) funds and constructed on a phase-by-phase approach.

The private sector proposal of theSan Miguel unit had, in fact, been found to be disadvantageous to the government as of the proponents insisted on a “take or pay” clause which would require the buyer of the bulk water to pay for the raw water whether they use it or not.