Government told to ditch planned Laiban Dam project

MANILA, Philippines - Local debt watchdog Freedom from Debt Coalition (FDC) yesterday urged the government to ditch the planned Laiban Dam project in Tanay, Rizal.

The FDC claimed the $1-billion undertaking makes consumers of the Metropolitan Waterworks and Sewerage System (MWSS) pay more on top of the water rates they are currently paying to water distributors Maynilad Water Co. Inc. (MWCI) and Manila Water Services Inc. (MWSI).

The FDC stressed the dam project would put the 12-million consumers at a disadvantage since they would end up paying around P18 to P20 more per cubic meter of water under the proposed “take or pay” provision of the project.

“If news reports on rate adjustment attributed to the proposed Laiban Dam project are correct, then residents of Metro Manila and other areas under the services of MWSS’s two water concessionaires will be made to bear an additional cost of P18 to P20 per cubic meter,” FDC’s Dianne Roa said.

Roa calculated that each household consuming around 30 cubic meters of water would have to pay an additional P540 to P600 monthly under the proposed project.

Roa said the reported “take or pay” scheme in the joint venture between the MWSS and San Miguel Bulk Water Co. Inc. is unreasonable.

The group explained the scheme provides for the payment of a specified volume of water supply each day, which burdens the MWSS with the associated risks related to the inaccuracy of any supply-and-demand projections. – Katherine Adraneda