MWSS defends Kaliwa Dam deal

MANILA, Philippines — The Chinese firm that bagged the controversial Kaliwa Dam project has complied with all requirements for the contract, the Metropolitan Waterworks and Sewerage System (MWSS) said, amid reports that bidding for the project may have been rigged.

“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,” the MWSS said in defending China Energy Engineering Corp.

The company will build the P12.2-billion dam in Quezon to supply an additional 600 million liters of water per day to Metro Manila.

The MWSS issued its statement after the Commission on Audit (COA) accused it of failing to observe proper bidding and vetting procedures before it awarded the project to CEEC in December 2018.

The MWSS has already submitted its response to the COA on the selection process for the winning contractor of the project, as well as the documents required to access the loan.

“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 a part of the MWSS’ water security program,” it said.

Based on the audit team’s investigation, the technical working group of the MWSS shortlisted and eventually accepted the bid applications of three Chinese firms – CEEC, Consortium of Guangdong Foreign Construction and Power China Ltd. – even if two of them failed to meet the pre-qualification requirements set earlier by the MWSS for the project.

The state audit body said CEEC and Consortium of Guangdong specifically failed to show that they have met the required years of experience in design, engineering and construction works.

Under the MWSS’s guidelines, only firms that have successfully completed design, engineering and construction works for a dam and conveyance structure of similar complexity as the proposed Kaliwa Dam project in the last 20 years shall qualify for the bidding.

Civil society and non-government organizations have been supporting the call of the Agta-Dumagat-Remontado tribes in Quezon and Rizal demanding the cancellation of the Kaliwa Dam project.

The project reportedly threatens to displace the indigenous communities and harm their livelihood and environment.