The government has scrapped San Miguel Corp.’s (SMC) bid to put up a huge dam that was supposed to supplement the water supply of the Philippines’ capital region.
In a press conference, Diosdado Allado, administrator of state-run Metropolitan Waterworks and Sewerage System (MWSS), on Wednesday said the agency had written to SMC, informing the food and beverage giant that the government would terminate the negotiations for the project, which has drawn flak from the National Economic and Development Authority (NEDA), Metro Manila’s two private water concessionaires, and a host of non-government organizations.
“This announcement will end all the speculation. The negotiation for the joint venture to develop the Laiban Dam has bogged down. We have terminated the negotiation. Thus, San Miguel is no longer being considered by MWSS as [a] partner,” Allado said.
He said both parties were unable to have a “meeting of minds,” even on the basic terms and conditions of the contract.
A key criticism to the project was a “take-or-pay” provision, which would require MWSS’ two private water concessionaries—and ultimately, the consuming public—to pay for unused water flowing from the dam.
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