With the water shortage and water security now being addressed, attention has shifted to the New Centennial Water Source- Kaliwa Dam Project (NCWS-KDP) of the Metropolitan Waterworks Sewerage System (MWSS). It is among the medium-term new water sources for Metro Manila and neighboring provinces and one of the flagship projects of the Duterte Administration under its Build, Build, Build program.

 

The NCWS-KDP was approved by the NEDA Board on May 29, 2014 with its financing to be provided for under a Public-Private Partnership scheme worth P18.5 billion.

 

On September 15, 2015, the NEDA Board approved the participation of the Department of Public Works and Highways as co-implementor of the project because of the debt ceiling limit of MWSS.  But the required memorandum of Agreement between MWSS and DPWH for the co-implementation was not signed.

 

A meeting was held on January 6, 2017 among NEDA, the Department of Finance and MWSS to discuss projects for possible funding under the China Loan Package.

 

On January 17, 2017 the Kaliwa Dam Project was submitted by MWSS to NEDA for funding under the China Loan Package.

 

From a public-private partnership however, the project will now be financed through the Official Development Assistance with China funding 85 percent of the P12.2 billion project cost, contrary to reports by CNN and media that the Kaliwa Dam’s Project will cost USD 800 million or P42.1  billion. Velasco stressed this means the Philippine government will be shouldering only 15 percent of the cost which is roughly P1.8 billion.

 

This project was approved by the NEDA Board on June 27, 2017. Under the China ODA, three Chinese firms will take part in the bidding. It has been awarded to China Energy Engineering Corporation, one of three Chinese firms nominated by China Ministry of Commerce.

 

The loan agreement for the NCWS-KDP was signed on November 20, 2018 by MWSS Administrator Reynaldo V. Velasco and China Energy Chairman Wang Jian Ping witnessed by President Rodrigo Duterte and PROC President Xi Jinping during the latter’s State visit to the Philippines.

 

Meanwhile, the Kaliwa Intake Weir Project, proposed by Global Utility Development Corporation (GUDC) of Japan, is found ineligible for unsolicited proposals pursuant to Section 10.3 of the Implementing Rules and Regulations of the BOT Law. This was relayed by the PPP Center in a letter dated March 23, 2017.

NEDA has informed GUDC that the government has already decided to pursue the NCWS-KDP through Chinese ODA and that the project has been the subject of government discussions with the Chinese Embassy and the Export-Import Bank of China.

 

Kaliwa Dam vs. Intake Weir

 

  1. The MWSS Kaliwa Dam will be 60 meters in height which will function as impounding dam and reservoir with flood mitigation benefit. GUDC’s proposed Kaliwa Intake Weir on the other hand will be seven meters high and will function only as a run-of-river diversion.
  2. As to its supply capacity, Kaliwa Dam will supply 600 MLD that can be expanded to 2,400 MLD when a conveyance pipe will be connected to Kanan river while the Intake Weir has only a maximum 550 MLD supply capacity.
  3. Comparing the two projects’ raw water conveyance tunnel capacity, Kaliwa Dam has 2,400MLD capacity and is designed to accommodate additional raw water of 1,800 MLD coming from either Laiban Dam or Kanan Dam which is already included in the contract cost with China Energy. The Intake Weir however, only has a 550 MLD capacity with no more room for additional water.
  4. Meanwhile the Intake Weir has an estimated cost of USD448 Million or P21.6 billion. Should there be a need to increase the supply to 2,400 MLD, another dam has to be built including a separate conveyance tunnel to accommodate the additional 1,800 MLD and this would entail additional costs. Kaliwa Dam has a cost of USD248M which will provide up to 600 MLD but is expandable to 2,400 MLD without need to install new conveyance tunnels and another dam.
  5. Delivery point of raw water for Kaliwa Dam is up to Teresa, Rizal with its 27.70 kilometer-long raw water conveyance tunnel while the Intake Weir’s delivery point of raw water is up to Tanay, Rizal only with its raw water conveyance tunnel measuring only 16 kilometers. This will mean additional pipes and pipe laying costs to the planned treatment plant of concessionaires.