THE Metropolitan Waterworks and Sewerage System has started its own due diligence and vetting on three Chinese contractors submitted by the People’s Republic of China to the Department of Finance for the P18.75-billion Kaliwa Dam project which is part of President Rodrigo R. Duterte’s flagship water security projects.
This was announced by MWSS Administrator Reynaldo V. Velasco in compliance with the directive of Finance Secretary Carlos G. Dominguez for “MWSS to conduct its own due diligence in vetting the said Chinese companies/contractors subject applicable laws, rules and regulations.”
In a letter to the DoF secretary last September, Ambassador Extrordinary and Plenipotentiary of the People’s Republic of China to the Philippines Zhao Jianhua submitted the shortlisted three Chinese contractors and companies namely China Engineering Co., Ltd., Power China Limited, and Consortium of Guandung Foreign Construction, Co., Ltd. and Guandong Yuantian Engineering Co., Ltd.
Velasco met earlier this week with Chinese Commercial Counsellor Jin Yuan who accompanied the officials representatives of the three Chinese companies to present their credentials to the MWSS Technical Working Group.
In a letter to the MWSS chief, the finance secretary underscored the need for the water agency to follow “pertinent provisions of the GPH Note Verbale and Chinese Reply executed on March 3 and 8, 2017 respectively, and ClarificatoryLetter on the Procedures and Arrangements dated June 29, 2017, requesting MWSS to immediately commence the procurement process and undertake limited Competitive Bidding among said Chinese companies and contractors following applicable procedures and documents under Republic Act. No. 9184 orGovernment Procurement Reform Act.”
The dam project is situated at Barangay Pagsangahan, General Nakar andBarangay Magsaysay, Infanta, in Quezon province.
The project involves the construction of a dam with a discharge capacity of 600 million liters per day and a 27.7-kilometer raw water conveyance tunnel with adesign capacity of 2.4 million liters per day.
According to Velasco, the Kaliwa dam funding is pursuant to the bilateral arrangements between the Government of the Republic of the Philippines and the People’s Republic of China wherein the Chinese government committed P10.2-billion ODA to help fund the Kaliwa Dam project in Quezon province.
Velasco said the financing for the project would now be in the form of official development assistance loan, instead of a public-private partnership scheme.
The Kaliwa Dam project, which has a total cost of P18.75 billion, is located at Barangay Pagsangahan, General Nakar and Barangay Magsaysay, Infanta, in Quezon province.
The project involves the construction of a dam with a discharge capacity of 600 million liters per day and a 27.7-kilometer raw water conveyance tunnel with a design capacity of 2.4 million liters per day.
Meanwhile, Velasco is also vigorously pursuing the Laiban Dam project, which is three times bigger than the Kaliwa dam, for the overall water security of Metro Manila since 95.6 percent of potable water source comes from Angat and Ipo dams.
Laiban Dam is a bulk water supply project that has been approved, deferred, canceled and re-approved since it was first proposed in the late 1970s.
Following the privatization of the MWSS under the watch of former President Fidel Ramos, the implementation of the Laiban Dam Project was left hanging as Maynilad and Manila Water Services Inc. took over the west and east water sectors of Metro Manila.
Laiban was approved for funding under a China loan during the administration of President Gloria Arroyo in April 2007, but was ordered canceled again in 2008.
The project was repackaged under the Water Security Legacy Plan of MWSS as an integrated dam system consisting of both the Kaliwa Dam and Laiban Dam with a hydropower component.