Razon, Ayala to partner for Wawa Dam project

MANILA, Philippines — Ayala-led Manila Water Co. Inc. and Enrique Razon Jr. of the International Container Terminal Services Inc. are in talks to seal the deal for the construction of a dam in Montalban to ensure sufficient water supply in the east zone area.

Metropolitan Waterworks and Sewerage System (MWSS) administrator Reynaldo Velasco said Manila Water is now negotiating with the Razon-Oscar Violago tandem to proceed with the new Montalban Dam or much improved Wawa Dam as a medium-term water source.

“In so far on additional water coming from Wawa, it is a talk between Manila Water and the Razon group. That is the direction they are going and from what I gathered, Manila Water is being invited by Razon to form a JV (joint venture),” Velasco said.

“Talks are ongoing. Talks are still in early stage so no timeline yet,” Manila Water chief operating officer Geodino Carpio confirmed in a message to The STAR.

Velasco added that part of the ongoing negotiations is for Razon and Violago to withdraw the legal case on contesting water rights.

“I would rather that Manila Water and the Razon group will settle. But the bottomline is if they don’t release that (80 million liters per day), there will be no project,” he said.

MWSS owns the 80 MLD which is needed for Manila Water to cope with their water requirement before Kaliwa Dam becomes operational.

The 80 MLD is supposed to be developed by Manila Water, being a concessionaire of the MWSS. The volume is also expected to solve one to two years of possible water supply deficit.

“I will stand by it that if they don’t release the water rights, no go. If they want to make business with us, settle the issue and remove that case filed against us,” Velasco said.

“I hope they finish the talks as soon as possible. They have to go back to the MWSS Board by March for our approval as to what they really want to do,” he added.

It was in 2010 when Violago accused Manila Water, the National Water Resources Board, and the MWSS of blocking his company’s bid to develop the Wawa Dam Project.

Violago claimed that while they had the water rights after their application in 1993, Manila Water managed to get a permit allowing them to make advanced collections from water consumers in 2003.

Earlier reports even claimed that while Violago has been proposing for the development of the project more than 20 years ago, MWSS actually wanted to give the rights to develop Wawa to Manila Water.

In 2008, SLRB already submitted a full feasibility study for the 80 MLD, which the MWSS now wants to be released in favour of Manila Water.

Meanwhile, the Wawa Dam feasibility study is also expected to be finished by the first quarter.

With the new proposal for the Wawa Dam which has a capacity of 500 MLD, Manila Water would have to buy the raw water.

Manila Water is already breaching the supply allocated for them amid increasing demand of about 1640 MLD. It is even utilizing supply from the La Mesa dam which is supposed to be for reserves.