The Laguna Lake Development Authority (LLDA) has endorsed an unsolicited proposal from a private consortium to rehabilitate and develop Laguna de Bay, the country’s largest lake and biggest aquaculture hub.
In a news statement, LLDA General Manager Jaime “Joey” Medina disclosed that the agency’s Board of Directors has approved the proposed P609-billion Laguna Lake Development and Rehabilitation Project “after months of review and evaluation.”
The unsolicited proposal will be undertaken through a Build-Own-Operate (BOO) scheme, which means that the proponent will finance, construct, operate, maintain and own facility and can collect fees and charges to recover their investment.
The government, on the other hand, will provide the authorization and assistance in securing the BOO contract and has the option to buy the output, or service provided by the operator.
The consortium is led by Taguig Lake City Development Corp. (TLCDC), with two big foreign companies as partners that have the experience, expertise and track record in undertaking such a project.
Medina said the endorsement comes on the heels of successive strong tropical cyclones, the latest of which is Typhoon Ulysses that triggered massive flooding in Metro Manila, Rizal province and other areas.
“This is a welcome opportunity as this will truly aid in addressing the Laguna Lake’s continual problems in siltation, industrial pollution, sedimentation, and lakeshore flooding,” Medina said.
Medina said the project proponent has been issued “original proponent status,” or OPS, and the project is now under review by the National Economic and Development Authority (Neda), through its Public-Private Partnership Center.
The LLDA endorsement will be eventually evaluated by Neda’s Investment Coordination Committee to determine the reasonable rate of return and other parameters for negotiation.
The Neda Board would either approve, or deny, the proposal as the case may be.
The consortium, after being granted the OPS, now has the authority to match better offers submitted by other rivals when a Swiss challenge is undertaken for the project, the LLDA chief said.
The rehabilitation project will run in a span of five years to 10 years. It includes the dredging of approximately 800 million cubic meters of silt and mud.
It also involves an assistance program to affected fisherfolk and other stakeholders, as well as silt transfer and development of pre-identified catchment area to be done in phases as the dredging process progresses.
The said project also includes soil treatment, ground improvement and development, construction of a water treatment facility and the introduction of a soil improvement technology called the high vacuum densification method (HVDM).
Sometime in December 2019, the LLDA sent a briefer, through a memorandum to the Office of the President, on the urgent need to rehabilitate the waters of Laguna Lake to sustain and enhance aquatic life therein; the need to increase and improve the holding capacity and water quality of the Laguna Lake in order to viably and effectively access the lake as a domestic water source; and the potential of Laguna Lake and its outlying areas to significantly enhance water quality and boost socio-economic growth in the region and in the country.
The memorandum also stated the request of LLDA to seek President Duterte’s favorable endorsement and approval of the project and its project objectives for purposes of urgent and speedy implementation.
The Laguna de Bay is the largest lake in the Philippines, with around 100 rivers and streams draining into it, making it prone to siltation and flooding. The Napindan Channel, through the Pasig River, drains the lake waters to Manila Bay.
During the onslaught of Typhoon Ulysses, the Laguna Lake overflowed causing severe flooding and affecting thousands of residents in several municipalities and cities in Laguna, such as Famy, Sta Cruz, Calamba, and San Pedro.
Due to strong winds and currents, fish pens in Laguna de Bay were wiped out and unleashed some 2.2 million kilograms of bangus, or milkfish, estimated to cost P115 million in losses to fish operators of Laguna during Typhoon Rolly.
Image credits: Nonie Reyes