COA flags MWSS over P12 billion Kaliwa Dam project

MANILA, Philippines — The Commission on Audit (COA) has called out the Metropolitan Waterworks and Sewerage System (MWSS) for proceeding with the implementation of the P12.2-billion Kaliwa Dam project in Infanta, Quezon without proof of compliance with environmental prerequisites and submission of necessary permits.

In its 2020 annual audit report, the COA noted that the MWSS entered into a contract agremeent and issued a notice to China Energy Engineering Corp. Ltd. to proceed with the project on Nov. 13, 2019.

The COA noted that based on the MWSS’ 2020 report on projects, programs and activities, the detailed engineering and design phase of the dam project was 92.67 percent complete at the end of the year.

The audit body said this was despite the MWSS’ failure to show proof that the preconditions set by the Department of Environment and Natural Resources (DENR) under an environmental compliance certificate issued on Oct. 11, 2019 have been complied with.

Among the preconditions set by the DENR were the submission of approved reforestation program, waste management plan, integrated watershed management plan, comprehensive social development program, ancestral domain and cultural heritage sustainable development plan, and cultural heritage protection plan. Also required are the creation of a multipartite monitoring team and inventory and assessment of threatened species that may be affected during clearing operations.

The COA said its audit team requested for the submission of the relevant documents and permits, but the MWSS simply provided a “checklist” and a photocopy of a compliance monitoring report last May 20.

The agency said the MWSS should direct its engineering and technical operations group to secure the necessary permits and submit an authenticated copy of the compliance monitoring report and supporting documents.

It was in 2018 when the Philippine government secured a loan amounting to  $211.21 million or P12.2 billion from the Chinese government, through the Export-Import Bank of China under the Official Development Assistance program.

The loan shall finance 64 percent of the P18.7-billion total cost of the the dam project, which is expected to stabilize the water supply in Metro Manila and nearby provinces.

The COA noted that on March 20, 2020, the MWSS had availed P1.544 billion of the loan from China Eximbank.

The agency recommended to the MWSS to direct its engineering and technical operations group to secure the necessary permits as required by the DENR and to submit to the audit team an authenticated copy of the compliance monitoring report and supporting documents.