MANILA - The Metropolitan Waterworks and Sewerage System (MWSS) has slammed allegations that it was keeping the private sector proposal on the construction of the Laiban Dam under wraps, describing the charges as "baseless, imprudent and reckless."

At a press conference held at the Manila Water headquarters on Thursday, MWSS administrator Diosdado Jose Allado said that he was unable to address concerns about San Miguel Corp.'s unsolicited proposal for the Laiban Dam project in the past few weeks because he was confined in a hospital for pneumonia.

Apart from this, Allado explained that pertinent information about the proposal from the food-turned-power conglomerate--so far the only party that has expressed interest in the project--was still bound by a confidentiality agreement as this was still being evaluated.

"There is absolutely nothing secret or sinister, illegal or inappropriate about this project. The Laiban Dam project is a pro-active government initiative that seeks to address the water supply demand of Metro Manila in the year 2015, and to prepare for inevitable deterioration of the only source of water for Metro manila--the Angat Dam Reservoir," Allado said.

Allado added that the National Economic and Development Authority (NEDA), one of the parties concerned about the alleged lack of transparency in the Laiban Dam negotiations, is currently a member of the MWSS' joint venture selection committee, and had access to the studies provided by San Miguel.

"All members of the committee have access to the studies, but they have set hours to look at it and take notes. They cannot, however, photocopy the studies to take them home. They are all bound by the confidentiality agreement," he said.

ABS-CBN News tried to reach NEDA officials for comment but could not contact any of them.

According to earlier reports, the NEDA representative in the MWSS JV committee has sought to secure a copy of San Miguel's proposal but the water regulator declined the request.

For his part, Engr. Isais Bongar, MWSS deputy administrator and chairman of the JV Committee, said the MWSS has not fallen short of any of the JV guidelines set by the government. He said they advertised for a Swiss Challenge for the Laiban Dam project in more than 2 publications as prescribed in the guidelines.

The period for publishing MWSS' Swiss Challenge ran from July 2 to 8. Investor groups have until August 7 to challenge San Miguel's proposal, Bongar said.

"Given the urgency of the project, since it would take 4 years to construct the dam, we will be meeting next week to set a timetable to decide to whom we should award the JV contract," Bongar noted.

"The unsolicited proposal is still subject to a process of competitive challenge that has yet to be completed. The procedures covering this type of unsolicited proposal have been approved by the NEDA, the Office of the Government Corporate Counsel, and the Government Procurement Policy Board," added Allado.

Allado stressed the government chose the JV above other means of financing such as official development loans and build-operate-transfer schemes, as this would pass the burden of cost to the private sector.

The Laiban Dam project, which is estimated to cost a little more than $1 billion, will be the biggest infrastructure project in the country.

The project is expected to add some 1,900 million liters per day (MLD) of additional water supply to the National Capital Region, effectively addressing a 1,600 MLD projected deficit by 2015.

It also effectively ends the dependence of NCR on water coming from the 41-year old Angat Dam, which straddles a fault line, and is heavily silted. -Michelle Orosa, ABS-CBN News; abs-cbnNEWS.com