Metro Manila (CNN Philippines, May 9) — The minority bloc in the House of Representatives Thursday asked the Supreme Court to halt the construction of the China-funded Kaliwa Dam construction and to declare the million-dollar project unconstitutional.
Makabayan, led by Bayan Muna Rep. and senatorial hopeful Neri Colmenares, urged the high court to issue a temporary restraining order (TRO) and/or preliminary injunction on the Preferential Buyer’s Credit Loan Agreement on the New Centennial Water Source–Kaliwa Dam Project while their petition is pending.
In the petition, the group cited the track record of Chinese contractors and their alleged fraudulent and substandard work.
The Makabayan bloc also said the loan agreement for the project that is expected to supply 600 million liters of water per day to Metro Manila will have adverse consequences.
“The loan agreement itself, along with the project it seeks to finance, while purported to be for the benefit of the water requirements of Metro Manila, will have negative impact on the Filipino people’s exercise and enjoyment of our country’s vital assets and sovereign rights,” the petition read.
Supreme Court Senior Associate Justice Antonio Carpio previously warned that the Kaliwa Dam project could end up using the country’s patrimonial assets as collateral — just like the Chico River loan agreement with China.
Of the $231.59-billion project, $211.215 billion will be loaned from China. The Kaliwa Dam contract provides for a two-percent annual interest for 20 years, although repayments will only be 13 years to make way for a seven-year grace period. The Philippines will also have to pay an additional $633.644 million within a month after the loan is availed, representing a management fee worth 0.3 percent of the loan amount, plus an annual commitment fee priced at 0.3 percent.
Makabayan also asked the Supreme Court to order the administration to release documents in granting the civil works to the Chinese contractor.
The Duterte administration hopes to begin building the China-funded Kaliwa Dam in July this year help secure water supply for Metro Manila. This is in the wake of a crisis that hit the metropolis and neighboring Rizal province in March.
Under the project, a 27-kilometer tunnel will connect the water source from General Nakar-Infanta in Quezon province to a water treatment plant in Antipolo-Teresa in Rizal to supply water to Metro Manila and nearby areas.
