NIA set to start work on P5.8-B irrigation canals of Casecnan dam

The National Irrigation Administration (NIA) said it would begin work on the P5.8-billion irrigation canals of the Casecnan Multi-Purpose Project (CMPP) in Nueva Ecija to enable the system to achieve its full operation in the next five years.

NIA Administrator Jesus Emmanuel Paras said the canals, funded by the Japan Bank for International Cooperation (JBIC), has been assured of local counterpart funding by the Department of Budget and Management of 20 percent of total cost. The DBM has committed to release the allotments early this year.

The entire cost of CMPP is $650 million. The project is envisioned to boost rice production by one million metric tons and corn by 100,000 metric tons. The project was constructed by CalEnergy of the United States through the CE Casecnan Water and Energy Co. CE Casecnan’s parent company, MidAmerican Energy Holdings, said the project will definitely boost rice production in the country since large scale irrigation projects like Casecnan are able to provide more water to crops than small water impounding systems. Such projects, while capital intensive, prove to be cost effective in the long run.

Although the first phase of Casecnan was formally inaugurated and operated last September (with the opening of the valve), the CMPP could only operate its power plant component which would expectedly release a portion of water for irrigation of neighboring farms.

The main irrigation compnonent — the main canals — will be built this year to make sure that the project is able to irrigate its target of 40,000 hectares within the next five years and another 110,000 hectares to be watered by the Pantabangan dam which will be a receptacle of water from Casecnan dam.

MidAmerican chairman and chief executive officer David Sokol lauded the synergy between the Philippine government’s agricultural modernization policy with that of increased private sector participation as the fuel to the economic recovery of the Philippines.

President Arroyo, he said, is taking the issues very seriously. "I think she recognizes the need to maintain a very consistent economic climate for future investments," Sokol added.