Gov’t may revive Laiban Dam project

MANILA, Philippines – The Aquino administration may revive the controversial Laiban Dam project as it looks for another water source for Metro Manila.

The PPP Center of the Philippines said the Metropolitan Waterworks and Sewerage System (MWSS) plans to develop the New Centennial Water Source Project (NCWS) and bid it to investors under the Public-Private Partnership scheme.

NCWS could involve either or both of the Laiban Dam and Kaliwa Low Dam along Kaliwa River in Quezon.

The project aims to “maximize water supply, ensure short- and long-term redundancy and optimize power generation capacities,” the PPP Center said in a statement.

If developed, it is projected to supply at least 1,800 million liters of water per day to Metro Manila residents.

The PPP Center tapped RebelGroup consortium with Allen & Overy, Crisil, PJS Law and Royal Haskoning DHV as transaction advisor for NCWS.

The PPP Center said MWSS is studying the viability of the project.

The Aquino administration started to review the Laiban Dam project in August 2012 following growing concerns over a looming water shortage in Manila.

San Miguel Corp. had submitted through a unit an unsolicited proposal for Laiban Dam, but it was scrapped due alleged lack of transparency.

Metro Manila’s water distributors slammed the take or pay scheme attached to San Miguel’s proposal, a feature that could jack up water rates. Such scheme binds the buyer of water from Laiban to pay for a certain volume of supply even if this is not consumed. – Rappler.com