THE Kaliwa Dam Project has already cost Filipino taxpayers P45.782 million in commitment fees to be paid to the Export-Import Bank of China.
According to an audit report on the Metropolitan Waterworks and Sewerage System (MWSS) released last August 4, the project has incurred P18.77 million in 2020 and P27.012 million in 2021 in commitment fees — a charge imposed by creditors based on a pre-agreed percentage of the undrawn loan amount set aside by a foreign or domestic lending institution.
Kaliwa Dam is funded by a $211.215 million loan from the China Eximbank based on an agreement executed between the bank and MWSS on November 20, 2018.
Government auditors said the China Eximbank has already made available around 85 percent of the loanable sum but the MWSS has not yet drawn any amount, hence the charges.
“The incurrence of the commitment fees was due to the delay in the commencement of the actual physical construction activities of the Kaliwa Dam Project. To date, the MWSS still lacks the necessary permits and licenses, as required in the Environmental Compliance Certificate (ECC),” the Commission on Audit said.
Among the requirements are a duly signed memorandum of agreement (MOA) with affected local government units, an Indigenous Peoples Development Plan approved by the National Commission in Indigenous People (NCIP), establishment of a program for reforestation and carbon sink mechanisms to offset greenhouse gases, a detailed waste management program, a comprehensive inventory and assessment of threatened species that may be affected by clearing operations, and the creation of a Multipartite Monitoring Team to oversee the project and ascertain observance of all environmental policies.
The Department of Environment and Natural Resources (DENR) also imposed restrictions against the start of any activity until the proponent has satisfied specific conditions in compliance with RA 7586 or the National Integrated Protected Areas System Act (NIPAS) as amended by RA 11038; a certification from the NCIP; and identification, creation, and approval of disposal sites for excavated materials.
In its answer to the audit findings, the MWSS management said it has sought the assistance of the Anti-Red Tape Authority (ARTA) to mediate with involved government agencies and expedite the processing of the Certificate of Precondition.
It said the NCIP has also received the Free, Prior, and Informed Consent (FPIC) signed by leaders of affected indigenous peoples. The Dumagat people have earlier opposed the dam project that will require them to abandon their ancestral domains.
As for the land acquisition for the tunnel port area, the MWSS said the restrictions brought about by the COVID-19 pandemic has also adversely affected the timetable.
