MANILA – Advocacy group Freedom from Debt Coalition added its voice to the growing opposition to the controversial Laiban Dam project of the Metropolitan Waterworks and Sewerage System (MWSS).

In a statement on Friday, FDC urged the government to abandon the $1-billion dam project since it would likely be disadvantageous to both the government and the 12 million Metro Manila-based MWSS customers.

Impact to consumers

FDC advocacy coordinator Dianne Roa echoed concerns previously raised by other groups that the dam project would potentially result in an additional cost of P18 to P20 per cubic meter. This is in addition to the water rates presently being collected for water distribution by Maynilad and Manila Water.

“Each household that consumes around 30 cubic meters of water has to shell out an additional P540 to P600 monthly should this proposed project push through. This is unacceptable. Government should abandon the proposed Laiban Dam project,” said Roa.

Roa highlighted the reported “take or pay” provision contained in the joint venture between the MWSS and San Miguel Bulk Water Co. Inc. “if the supply projection exceeds the actual volume that can actually be depended on daily from the water supply project, MWSS may find itself paying for volumes of water that are not actually delivered,” Roa said.

Impact to government

The FDC advocacy coordinator also said that huge cost overruns, which are typical of a large dam project such as the Laiban Dam, will further jack up the project cost.

Estimated at $1 billion, the dam is the most expensive water supply project of the MWSS to date.

“The government has a poor track record on estimating the correct amount of its big projects. With a project this huge, let us expect the actual cost to double. Unfortunately in the end, every last centavo spent for the project would be recovered from MWSS consumers,” Roa said.