MANILA - The Philippines entered into an agreement with the Kingdom of Norway to help improve the flood forecasting and warning system (FFWS) of the Magat dam in Cagayan, following the onslaught of massive floods caused by recent storms.

Under the deal, the Norwegian Agency for Development Cooperation (NORAD) will contribute P71.2 million to improve existing FFWS facilities and to expand the monitoring facilities of the Cagayan river basin.

The Philippines, for its part, will contribute P9.3 million for the public information drive, labor, and civil works. Of the amount, P3.4 million will come from SN Aboitiz Power-Magat Inc. (SNAP-Magat), while the rest will be provided by weather bureau PAGASA and the National Irrigation Administration (NIA).

"When we assumed operation of the power plant, we saw the need for rehabilitating the FFWS system and equipment to better contribute to PAGASA and NIA's disaster mitigation capabilities in times of flooding," SNAP-Magat Chief Executive Officer Emmanuel Rubio said in a statement released Friday.

For his part, PAGASA Administrator Dr. Prisco Nilo said the agreement will "not only benefit the downstream area of Magat dam but also the whole Cagayan river basin."

The Magat dam is a multi-purpose dam which serves as a source of hydroelectric power and irrigation water for about 85,000 hectares of agricultural lands in Cagayan. NIA currently operates the dam, while SNAP-Magat owns and operates the 360-megawatt Magat hydroelectric power plant.

SNAP is jointly owned by SN Power of Norway and the Aboitiz Group.