MANILA, Philippines - The Department of Foreign Affairs (DFA) will study the ruling made by a World Bank body ordering the Philippine government to pay P800 million to a Belgian firm following the cancellation of the P18.7-billion Laguna Lake Rehabilitation project during the previous administration.
“We have to first study the ruling carefully,” DFA spokesperson Charles Jose said in a text message when asked if the Philippines would pay the fine or appeal the ruling made by the International Center for the Settlement of Investment Disputes (ICSID).
Jose said the Philippine embassy in Brussels has not received a communication from the government of Belgium regarding the matter.
The ICSID reportedly issued the ruling in favor of Belgian firm Baggerwerken Decloedt En Zoon (BDZ), the contractor for the lake dredging project that former president Benigno Aquino III cancelled upon assuming office in 2010.
Aquino identified the project as among the midnight deals made by the administration of his predecessor, former president and now Pampanga Rep. Gloria Macapagal-Arroyo.
He alleged that the project would not achieve its objective of increasing the water holding capacity of the lake, as the silt would only be moved from one part of the lake to another.
BDZ filed a P6-billion lawsuit for breach of contract against the Philippines after the scrapping of the deal.
Finance Secretary Carlos Dominguez III also said they will review the ruling.
“We just got the documents a few days ago so we’ll go over it carefully and we’ll see what legal remedies there are. If we have to pay, we will pay,” Dominguez was quoted as saying. The Belgian embassy in the Philippines has yet to comment on the matter.