Investigate, stop the Laiban Dam deal

News Release
July 22, 2009

Bayan Muna Partylist Representative Teddy Casiño warns that the shady deal between the Metropolitan Waterworks Sewerage System (MWSS) and the San Miguel Bulk Water Company, Incorporated (SMBWCI) to build the Laiban Dam in Tanay could wreak havoc on the lives of around 10,000 residents, Metro Manila consumers who will have to pay higher water rates, and the Filipino people in general as the deal adds to the long list of corruption cases under the Arroyo administration.

According to Casiño, "Its apparent that the negotiations between the MWSS and the SMBWCI were hastily done without the benefit of an open bidding, considering the project would involve more than P48-billion pesos of taxpayers money".

"There seems to be utter brazenness and lack of transparency in this deal, just like in other anomalous billion-peso projects under the Arroyo administration that we have consistently exposed and opposed," said Casiño.

To date, the Arroyo administration is host to controversial deals such as: the IMPSA deal (year 2001, involving $2 million), PIATCO (2003, $20 million), Northrail project (2004, $50 million), Mega Pacific deal (2004, P500 million), Diosdado Macapagal Blvd. (2004, P600 million), NBN-ZTE broadband deal (2007, $32.9 million), and World Bank road projects (2009, $33 million).

"These funds, had they been properly allocated under a pro-people government, could have provided for the health, education and other basic needs of the people," said Casiño. "But instead, under Arroyo's bankrupt regime, taxpayers' money easily go to the corrupt and greedy," he added.

Casiño said that the progressive partylist bloc had earlier filed House Resolution 510 in March 31, 2008 because the Laiban project threatened to displace thousands of indigenous peoples, destroy their ancestral lands and cultural heritage, and severely affect their very survival as a people.

"In addition, we are filing another resolution for an investigation of this bigger-than-the-NBN-ZTE deal involving MWSS and big businessmen allied with the Arroyos," said Casiño.

"If the deal contains nothing inimical to the people's interests, if there is nothing onerous or suspicious, if the parties involved here have nothing to hide, then the details surrounding this Laiban Dam project should be revealed. The public deserves to know these things," said Casiño.

Under the deal, the MWSS may be obliged to buy water from the SMBWCI and pay for unused water. This will result to higher water rates to be burdened by the consumers while both the MWSS and the SMBWCI are assured of huge profits. The Laiban Dam project could increase the cost of water in Metro Manila to P45 per cubic meter from the present P30 to P33 per cubic meter.

Casiño said "The present water shortage in some areas can be addressed by the Manila Water and Maynilad by repairing all leaking pipes, and by minimizing theft so that 4,000 MLD of raw water may be delivered".

"Even if the aim to build a new dam to provide for the needs of consumers were decades-old, rushing into a "sweetheart deal" only spells disaster for the people. The progressive partylist bloc aims to stop this Laiban deal not only to protect the people's rights to clean, safe and affordable water. We are opposing the project for the clear danger it brings," concludes Casiño.###