Gov’t may rescind Kaliwa Dam contract with China if finally found disadvantageous to PH – Palace

October 28, 2019

The Philippine government may rescind the contract with China on the Kaliwa Dam project if it would finally be found it is disadvantageous for the country, Malacañang said on Monday.

Presidential Spokesperson Salvador Panelo made the statement in the wake of the looming water crisis due to the critical water level of Angat Dam, the main source of water supply in Metro Manila and nearby areas.

"If the findings will show that it is indeed disadvantageous and is against the interest of the people there, then it can be rescinded," he said in a press briefing, referring to the Philippine deal with China on the construction of the P12.2 billion Kaliwa Dam project in Rizal and Quezon.

He said there is an ongoing study about the contract amid some legal questions, including a reported failure to consult indigenous people who would be affected by the project.

The Philippines and China formally agreed on the project during the visit in November last year by Chinese President Xi Jinping in Manila.

Asked if the Palace was not concerned that junking the contract with China might become an irritant between the two countries, Panelo said, "Even so. If the findings will show that it is against the interest of our country, I'm sure the Chinese government will understand as it would do the same if it was placed in the same situation."

Metro Manila and nearby areas are  experiencing water supply interruptions due to the critical water level in Angat Dam.

Panelo warned  the Metropolitan Waterworks and Sewerage System and the two water concessionaires of "drastic action" that President Rodrigo Duterte might take if the water crisis would not be averted.

"I suppose the fact that they have not undertaken corrective measures that will prevent the evolution of this upcoming crisis again would be a factor that would make the President decide on drastic action against them," he said.

"Well, the message again is shape up or ship out," Panelo added.

Last March, some areas in Metro Manila experienced water crisis, prompting Duterte to issue similar warning.

No official from MWSS was fired. Instead, Duterte transferred the MWSS executive to another position. Celerina Monte/DMS