LLDA backs proposed P609-B Laguna de Bay rehab project

MANILA, Philippines – The Laguna Lake Development Authority (LLDA) has expressed support for an unsolicited proposal from a private consortium to rehabilitate and develop Laguna de Bay.
LLDA General Manager Jaime Medina said the agency’s Board of Directors has endorsed the proposed P609-billion rehabilitation and development project “after months of review and evaluation.”
LLDA is an agency under the Department of Environment and Natural Resources (DENR).
Medina said the endorsement of the project came after the spate of typhoons, the latest of which was Typhoon Ulysses that triggered massive flooding in the National Capital Region, 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,” he said in a statement.
Medina said the project proponent has been issued “original proponent status” (OPS) and that the project is now under review by the National Economic Development Authority (NEDA), through its Public-Private Partnership Center.
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, he explained.
The LLDA endorsement will be evaluated by NEDA’s Investment Coordination Committee to determine the reasonable rate of return and other parameters for negotiation, Medina said.
The decision on whether to approve or deny the proposal will be up to the NEDA Board, he added.
The rehabilitation project, which is proposed to be undertaken in a span of 5 to 10 years, includes the dredging of approximately 800 million cubic meter of silt and mud, assistance to affected fisherfolk and other stakeholders, and silt transfer and development of pre-identified catchment area to be done in phases while the dredging process progresses.
The unsolicited proposal will be under the 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 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 Corporation (TLCDC), with two big foreign companies as partners that have the experience, expertise and track record in undertaking such project.
The LLDA said it has sent a briefer thru a Memorandum to the Office of the President regarding the urgent need to rehabilitate the waters of Laguna Lake in order to sustain and enhance aquatic life therein; the critical 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 real 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 Laguna de Bay is the largest lake in the Philippines, with around 100 rivers and streams draining into it, making it prone to flooding. The Napindan Channel, through the Pasig River, drains the lake waters to Manila Bay.