MWSS may resume talks with SMC unit on Laiban Dam

MANILA, Philippines - Negotiations with San Miguel Bulk Water Co. (SMBWC) on the Laiban Dam project may still be resumed after President-elect Noynoy Aquino assumes office, the head of the Metropolitan Waterworks and Sewerage System (MWSS) said.

MWSS administrator Diosdado Jose Allado told The STAR that SMBWC’s Laiban Dam offer has not been formally withdrawn, nor has the MWSS Joint Venture Selection Committee officially terminated negotiations.

SMBWC had earlier clarified a recent STAR story that the Ramon Ang-led firm has already withdrawn its proposal to the MWSS.

Sources said that “while no action is being taken, there has been no formal withdrawal.”

Likewise, the SMBWC sources clarified, the MWSS is still “discussing legal issues” with the company.

According to Allado, SMBWC had returned to the joint venture selection committee with “new matters” but these have not been taken up yet, as events such as the recent national elections and the need to focus on the ill effects of El Nino, sidelined the negotiations.

Allado, said the committee will reconvene after the June 30 inauguration of President-elect Aquino. Allado, however, is not part of this committee.

As such, he said there is still no formal decision from the selection committee on SMBWC’s proposal. But he acknowledged that the MWSS is still constrained from looking at another joint venture partner.

“Pending (further) submissions and reconsiderations…it is still very much open for finalization,” he pointed out.

 “It doesn’t stop us from raising a part of the funding requirement and going into a joint venture with cash equity, apart from our franchise and water rights, etc., as our incipient contribution to the joint venture,” he said.

Allado had earlier told The STAR that he is eyeing possible foreign financing for the Laiban Dam project due to the continued need for an alternative raw water source for Manila aside from Angat Dam in Bulacan.

The Laiban Dam in Rizal province could supply as much as 1,900 million liters per day (MLD) once completed.

The SMBWC proposal has been heavily criticized due to a controversial “take or pay” provision which would force buyers of the dam’s water output to pay SMBWC whether or not the buyers use the water.