Belgian firm denies pursuing arbitration for Laguna de Bay dredging

MANILA, Philippines –  The Belgian firm Baggerwerken Decloedt and Zoon (BDC) yesterday denied allegations that they are pursuing international arbitration for the termination of the P18-billion contract for the dredging and rehabilitation of Laguna de Bay.

BDC director and general manager Dimitry Dutilleux said they have yet to receive any formal communication from the Philippine government that would notify them that the contract had been canceled.

“We have not received formal communication about anything. It would be nice if the government would formally inform us. We respect the new administration and if it wants a review, we have nothing to hide,” Dutilleux said.

Dutilleux said they only learned about the termination of the contract from Finance Secretary Cesar Purisima who had informed him along with Belgian Ambassador Christian Meerschman that President Aquino had canceled the project “months ago.”

Purisima said the President also mentioned the termination of the contract during the speech that marked his first 100 days in office.

Dutilleux pointed out there was no bidding for the project because of the 37 percent official development assistance (ODA) component and a review by the National Economic Development Authority (NEDA).

Dutilleux, however, admitted they were annoyed by allegations dragging the Belgian government into the dredging contract that was labeled a “midnight deal.”

“We cannot just walk away from this,” he stressed.

Purisima reportedly told Dutilleux and the Belgian ambassador that the Laguna Lake Development Authority (LLDA) and the Department of Environment and Natural Resources (DENR) had been tasked by President Aquino to reconfigure the project.

“Secretary Purisima said he would like to avoid international arbitration that is why they want to meet the ambassador and wait until reconfiguration. I do not know what he meant,” Dutilleux said.

Purisima cited reasons for the cancellation of the contract that Dutilleux declined to reveal, but he said he did not agree with these reasons.

“The government thinks it has very good reasons to cancel the contract. I do not want to divulge so as not to make matter worse,” he said.

According to Dutilleux, 90 percent of the clients of the company, active in dredging and environmental works, are governments and “normally when governments sign contract they do not change their mind.”

Although BDC will not force the issue with the Philippine government, Dutilleux said the company will seek fair compensation.

“For us going to court or international arbitration is always a last resort. So in the last couple of months we have consciously not been too much in the press because we do not want to force issues,” Dutilleux said.

“Now we see no choice because we were completely surprised by this announcement. There’s no letter, there is nothing,” he said.

In a separate interview, Dutilleux explained that the P300- to P400-million compensation they will seek would cover expenses spent on equipment, design, survey, hydrological survey, soil survey, and staff for the dredging and rehabilitation of the 950-square-kilometer Laguna de Bay.

“So that is all we would ask for. We are not going to force the government to do the project if they do not want to. We would like to sit down with the government and to tell you honestly if the government says no for whatever it is and we want to cancel that is their right. And the only thing we ask for is a fair compensation and the law defines what fair compensation is,” he added.

After the appointment of DENR Secretary Ramon Paje, BDC said they never had the opportunity to meet with him or any other DENR representative. The DENR has never communicated anything to BDC and has never replied to the company, he said.

“I think we have the right to explain to people that we are not evil incarnate and that is my feeling. The whole review of this project is review by hearsay nothing else,” Dutilleaux said.

He said the company would seek the help of Foreign Affairs Secretary Alberto Romulo and Paje to “plead to the government to give us, as it were, a day in court.”

“I feel we have been convicted without having a trial,” Dutilleux said.