The New Centenial Kaliwa Dam project has been planned since 1967 as a major source of water for Metro Manila. More than 5 decades has passed and it is only the administration of President Duterte that has taken bold and decisive action to ensure the swift implementation of this long overdue project.

This project will benefit the millions of residents of Metro Manila who have been reeling from water shortages year in and year out.

In this light, MWSS wishes to clarify the points raised in the article released by the Manila

Times on 18 August 2019, entitled “CoA flags MWSS bidding process on the P12-B Quezon dam Project”.

The COA Audit Observation Memorandum (AOM) issued by the COA on 16 June 2019 on the Kaliwa Dam Project, called for an explanation of the criteria for competitiveness on the vetting of the three (3) nominated Chinese contractors, with a reminder that the winning Contractor, China Energy Engineering Corporation should comply with the Contract Agreements before the conduct of preliminary project activities.

In response to the AOM, MWSS Management has already submitted the detailed explanation of the Technical Working Group to the COA Auditor.

With regard to the observation that the loan remains ineffective due to non-submission of documents required under the loan agreement, it is clarified that the following documents have already been obtained and submitted by MWSS, namely:

  • Monetary Board approval of the loan between MWSS and Export-Import Bank of China;
  • DOF Approval-in-Principle and Willingness to Guarantee
  • DOF Certification that all internal government approval required to deliver/execute the Loan Agreement have already been obtained.
  • BTr Certification that complies with Section 3 of Republic Act No. 4860
  • Special Authority from the President
  • Signed Preferential Buyer’s Credit Loan Agreement; and
  • Signed Letter of Guarantee

Clearly, the government approvals to the Loan Agreement were secured in full coordination

with all concerned agencies to implement this government flagship project which is part of the MWSS’ Water Security Program.

The only remaining pre-condition to loan effectiveness that has yet to be submitted is the Environmental Compliance Certificate (ECC). To date, the Environmental Impact Statement Report is undergoing second stage screening by the DENR-EMB. Public hearings have also been scheduled jointly by MWSS and DENR-EMB on August 23, 27, and 28 in the Provinces of Quezon and Rizal. Although the proceedings take time, MWSS is committed to comply with all the requirements for ECC issuance in order to ensure that the environmental and

indigenous peoples’ groups will be heard and that all concerns regarding the project will be addressed.

MWSS wishes to assure interested parties that all legal, financial, environmental and technical issues have been addressed in strict compliance with Philippine Laws, Rules and Regulations, as well as the Guidelines for Official Development Assistance Projects. MWSS is resolved to provide all necessary resources for the completion of the Kaliwa Dam project keeping in view the growing water scarcity in Metro Manila.