San Miguel still pursuing Laiban dam, says regulator
BusinessWorld | 11/04/2009 12:48 AM
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MANILA - Regulators will decide on San Miguel Corp.’s unsolicited proposal to build the Laiban Dam within the month, as long as the diversifying conglomerate submits additional explanations addressing fears of flooding and other environmental concerns.
San Miguel remains interested in the joint venture plan despite a previous statement by the firm’s president, Ramon S. Ang, that the conglomerate might back out amid opposition to the dam’s construction, said Isaias R. Bongar, Metropolitan Waterworks and Sewerage System (MWSS) deputy administrator.
“We may finish evaluation by the third week of November, assuming they submit the additional requirements on time,” Mr. Bongar said.
The additional requirements pertain to “environmental security concerns” following flooding around dams in Luzon caused by recent storms. “We asked them for additional data on how the facility could also help address climate change, as well as more data on how much rain the facility could hold, how many families it could affect in the area, etc.,” Mr. Bongar said.
San Miguel, which is diversifying into heavy industry, wants to build a new dam in Rizal in anticipation of the MWSS’ own forecast of a shortage of 1,600 million liters per day (MLD) in water supply by 2015.
The Laiban Dam, which will cost $1 billion or P52 billion, will have a capacity of 1,900 MLD.
Metro Manila has a water supply of 4,000 MLD.
Critics are opposing the plan over environmental issues, as well as a supposed provision that would require consumers to pay for water whether or not it is consumed. The two Metro Manila water utilities are also proposing alternatives to the dam.
Asked whether there has been communication from the San Miguel group expressing intention to withdraw from the project, Mr. Bongar replied in the negative.
“They are not withdrawing. In fact they have extended their bid bond until November to comply with our additional requirements,” Mr. Bongar said. The bid bond amounts to about P400 million, he said.
“We really hope to finish this within the year so the project could take off by next year,” Mr. Bongar said.
The proposed dam would be the biggest infrastructure project in the Philippines. Construction is estimated to take at least five years.
A protest march against the Laiban Dam by the Save Sierra Madre Network will start today and end Nov. 12. Participants, which will include indigenous peoples, farmers, women, rural workers, youth and the religious, will march 148 kilometers from General Nakar in Quezon to Malacañang. The group claims the project is “anti-environment, anti-development and anti-human rights.”
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