NEDA approves P3.1B hike in Kaliwa Dam project cost

MANILA, Philippines — The total approved cost of the Kaliwa Dam Project has increased to P15.3 billion following approval from the National Economic and Development Authority (NEDA) Board.

In a statement on Thursday, April 24, NEDA — recently reorganized as the Department of Economy, Planning and Development (DepDev) — said the Metropolitan Waterworks and Sewerage System (MWSS) had requested an extension of the loan validity and project implementation period, as well as changes to the project scope.

Originally pegged at P12.25 billion, the Kaliwa Dam is designed to stand 73 meters high and supply up to 600 million liters of water per day. It will also feature a 21.9-kilometer conveyance tunnel.

Initially slated for implementation from 2019 to 2022, the project timeline has been extended to 2026. It is expected to be operational by 2027.

Kaliwa Dam's goal. The government is banking on the Kaliwa Dam to expand the country’s water sources and ease recurring shortages, particularly in Metro Manila, Rizal and Cavite, where demand continues to rise.

But opposition has mounted due to the dam’s location along the Sierra Madre, within the watershed of the Kaliwa River that straddles the provinces of Rizal and Quezon. 

Concerns. Indigenous peoples, particularly the Dumagat-Remontado, and environmental groups have long called for the project’s cancellation, warning that it threatens livelihoods, cultural heritage and forest ecosystems.

At the same time, affected communities have raised concerns over the reported lack of genuine public consultations, saying the dam could flood their homes and force them to relocate.

As of December 2024, five years since construction began, the dam is only about 24.8% complete, according to the DepDev.

A report by the Philippine Center for Investigative Journalism (PCIJ) said project director Ryan Ayson attributed the construction delays to the provincial government’s refusal to issue necessary permits.

Controversial funding

Aside from the delays, the Kaliwa Dam, which is part of the broader New Centennial Water Source (NCWS) Project, has also drawn criticism over its funding. 

Under former President Rodrigo Duterte, who blamed indigenous opposition for the project’s delays, the government secured a $211.12-million official development assistance (ODA) loan from China in 2018 to fund the dam’s construction.

Through this loan deal, the China Energy Engineering Corporation was tapped to build the Kaliwa Dam.

The government also committed to funding 15% of the project through the MWSS, the agency in charge of its implementation.

The Kaliwa Dam was previously linked to the Laiban Dam as part of the broader NCWS Project. While Laiban targets the upstream area in Rizal and Kaliwa, the downstream portion in Quezon province, the former has similarly faced environmental concerns and opposition.

The project was first proposed in the 1970s under the administration of the late dictator Ferdinand Marcos Sr., father of the sitting president Bongbong Marcos Jr. It was only approved in 2014, with its financing scheme later revised in 2017 to a public-private partnership model.