Groups set to check Wawa dam viability

THE AYALA and the Razon groups are set to sign within the week an initial agreement to look into the viability of jointly developing the Wawa dam in Rizal as part of Manila Water Company, Inc.’s new water sources.

“Okay na, I think by Wednesday or Thursday magpipirmahan na ng initial memorandum of understanding to i-proceed nila ang project (It is okay. I think by Wednesday or Thursday they will sign the initial memorandum of understanding to proceed with the project),” Metropolitan Waterworks and Sewerage System (MWSS) Administrator Reynaldo V. Velasco told reporters after a press conference at the agency’s office in Quezon City on Monday.

Mr. Velasco was speaking in his capacity as head of the agency that had pushed the two groups to jointly develop the project. MWSS is tasked to look for new water sources for distribution of Metro Manila’s two water concessionaires.

Separately, Ferdinand M. Dela Cruz, Manila Water president and chief executive officer, said discussions on the Wawa dam project would lead to the formation of a technical working group to study the feasibility of the project.

He said the project would have to secure regulatory approvals.

“Kailangang i-defend ‘yan kay (before) Chief Regulator [Patrick Lester N. Ty],” he said in an interview after the press conference.

Mr. Dela Cruz said the project is among the options being considered by Manila Water for approval by the regulator in fixing the base water rate in 2022, or the end of the fourth rate-rebasing period. Capital expenditure projects of the water concessionaire need the approval of the regulator as these are to be recovered from customers.

He was referring to the new base rate for Manila Water’s concession covering the city’s east zone that ranged from P6.22 to P6.50 per cubic meter from 2018

to 2022. The staggered rate hike will be P1.46 on Oct. 15, 2018; P2.00 on Jan. 1, 2020 and another P2.00 on Jan. 1, 2021; and between P0.76 and P1.04 on Jan. 1, 2022.

“The Wawa dam option is factored in that with certain assumptions,” Mr. Dela Cruz said, citing the water delivery point and the raw water price.

“Siya (Wawa dam) is the upper range,” he added, referring to the P1.04/cu.m. in 2022.

“I think what needs to happen is we have to accelerate that discussion. And there are other options, which Gen. Velasco is proposing.”

KALIWA DAM ALTERNATIVE

At the same time, MWSS has questioned reports that a Japanese firm has revived a plan to build what it claims to be a cheaper and environment-friendly alternative to the Kaliwa dam project being implemented by the state water agency with a Chinese partner.

“The Kaliwa dam is already a done deal,” MWSS’s Mr. Velasco said in a press conference on Monday at the agency’s head office in Quezon City.

“We have already signed the contract,” he said, adding that the awarding of the project was done through proper bidding.

Earlier on Monday, Global Utility Development Corp. Ltd. (GUDC) presented its case in a press conference on Monday in Quezon City with the hope of gaining government support to its project, involving an intake weir along the Kaliwa River in Tanay, Rizal under a 25-year build-operate-transfer scheme.

“… NEDA decided to fund it (Kaliwa dam) through ODA (official development assistance). NEDA is a multi-agency chaired by the President,” he said, referring to the National Economic and Development Authority.

“Wala na ‘yan, approved na nga ng President (That alternative has no chance since the Kaliwa dam project has already been approved by the President). Do you think the President will change his decision? Na-bid na ‘yan, approved by the highest level at the NEDA.”

In December last year, Mr. Velasco said the Philippines and China had signed a loan agreement for the project on Nov. 20. The dam will be built by China Energy Engineering Co. Ltd. starting next year with 2023 as target completion date. The project’s P12.2-billion cost will be funded 85% by China and 15% by MWSS.

Toshikazu Nomura, GUDC chief executive officer, said on Monday his company’s proposal was first presented to the government in 2009 to address Metro Manila’s future water requirement. He claims a memorandum of understanding (MoU) had been inked with the MWSS under then President Gloria Macapagal-Arroyo, who is now House Speaker. — with