THE construction of China-funded Kaliwa Dam project, which is seen as a medium-term solution to the water crisis in Metro Manila, is also expected to be delayed because of the standoff in the passage of the proposed 2019 budget, a local economist said.
The budget bill has yet to be transmitted to the Palace as there is an ongoing debate on the last-minute changes done on the budget bill after the version approved by the bicameral conference committee was ratified by both chambers on February 8.
Foundation for Economic Freedom President and local economist Calixto V. Chikiamco also tagged as a mistake the Duterte administration’s shift in emphasis on the mode of financing the project from a public-private partnership (PPP) to official development assistance (ODA), which entailed getting a loan from a foreign country.
Debt servicing is annually appropriated in the country’s budget bill.
Despite the opposition of environmentalists and some critics to the construction of Kaliwa Dam, Chikiamco, meanwhile, also stood firm that this is the right step forward.
“Firstly, the Duterte government made a mistake of canceling the PPP for Kaliwa [Dam] in favor of Chinese ODA, delaying the project,” Chikiamco said in a text message to the BusinessMirror. “Secondly, Kaliwa can only be up in three to four years. Won’t solve current shortage.”
Nonetheless, he said he still favors the construction of Kaliwa Dam together with other dams as a good medium-term solution.
Chikiamco pinned the blame on the water crisis to the failure of Manila Water Co. Inc., one of the private concessionaires, to anticipate higher demand versus its water supply.
“For medium term, Laiban, Kaliwa and Kanan dams should be tapped as alternative to Angat. Combined the dams are capable of 8,000 million liters per day, double [that of] Angat’s capacity,” he said.
Manila Water on Saturday said it has already restored supply to 80 percent after a week of scheduled water interruptions.
No overnight solution–AER
Nonetheless, Action for Economic Reforms Coordinator Filomeno Sta. Ana III said there is no overnight solution to increase sustainable supply but the government should no longer be complacent about this.
“Building new dams must proceed but the government must be credible in undertaking these projects by being transparent and by convincing people that environmental, engineering and safety standards are met, that financing is sound and fair, that affected people are justly compensated,” Sta. Ana said in a text message to the BusinessMirror.
In the short run, he also urged the government to take the lead in facilitating the coordination between water concessionaires Maynilad and Manila Water in water sharing.
The government must also lead efforts in undertaking water conservation, he said.
High prices for summer
Moreover, Chikiamco recommended that the government set higher prices for water above a certain level during summer to encourage water conservation.
He also urged the government to immediately pass a law reforming the water industry similar to the Electric Power Industry Reform Act (Epira) and to set rights and rules for private investment in water production and distribution.
Population factor
Meanwhile, lawyer Michael Ll. Yusingco, nonresident research fellow at the Ateneo School of Government, said the government should not lose sight of the underlying cause of the problem, which is the growing population in National Capital Region.
“Ultimately, what this crisis is showing us is that the supply will soon be overwhelmed by the demand. And this is the problem we must all face now,” Yusingco said.
He also said the best way to move forward from this crisis is for President Duterte to call for a Water Resource Management Summit to look for viable long-term solutions to preserve the country’s water resources, including revamping the current water resource management regime.
Stakeholders can be gathered to produce a comprehensive and coherent water resource management plan for the country, he said.
“One such solution which can be properly discussed is to de-populate Metro Manila. While obviously controversial, I believe this proposal is very much in line with the President’s federalism agenda. In any case, this is an idea people in Metro Manila must seriously consider if we want to prevent an even harsher water crisis,” he said in an e-mail sent to the BusinessMirror.
“Doing this is utterly paramount considering that by next year our population will be 110 million. With more than half of Filipinos less than 35 years old.”
Aside from this, he said the government should also consider stabilizing water from typhoons into a sustainable and vast supply for cities.
“This will certainly relieve some pressure on our natural reservoirs. Pursuing this makes sense considering the number of typhoons that come our way every year,” he said.