The Makabayan bloc in Congress has dared the government to prove that Filipinos won’t lose in the contract it entered with Chinese for the construction of the Kaliwa Dam and Chico River Pump irrigation which will run from Quezon to Tanay, Rizal.
The group said the loan agreement for the dam project, which costs P12.20 billion, violates the Constitution.
Bayan Muna Rep. Isagani Carlos Zarate said the alleged illegal provisions in the contract include 1) Article 5.7 stating that the “Philippines or any of its assets, unless prohibited by the laws and public policies, are not entitled to any right of immunity on the grounds of sovereign or any legal process; 2) Article 8.1, which states that the “Philippines irrevocably waives any immunity on grounds of sovereignty; 3) Article 8.4, “agreement shall be governed by and construed in accordance with the laws of China; 4) Article 8.5, which stipulates that the Hong Kong International Arbitration Center will be the arbiter in case of a dispute; and 5) Article 8.9, which states that the terms, conditions and standard fees of the loan agreement are confidential.
Zarate insisted the government should stop the negotiations until the “onerous provisions” which are clearly detrimental to Filipinos are corrected.
Zarate opposed MWSS’ claim that the construction of the Kaliwa Dam will help prevent another water crisis and will augment Angat Dam’s lack of capacity which is the primary water source of Metro Manila.
The Bayan Muna solon said the water crisis can be solved without resorting to building a dam which, aside from being near a fault line, will displace indigenous people and plunge the country into another debt considering that the loan from China has a 2 percent interest rate.
“These loans may just be two of the many secret loan agreements between the Philippines and China which could run in the billions. Why proceed when badges of irregularities attended the project?” said Zarate.
Bayan Muna chairman Neri Colmenares also slammed the confidentiality clause of the Kaliwa Dam project.
According to Colmenares, access to the loan agreement will be restricted due to the confidentiality clause.
Bayan Muna Rep. Eufemia Cullamat said the construction of the Kaliwa Dam is a clear discrimination against indigenous people.
Cullamat added additional water supply can be tapped from the Wawa Dam and Laguna Lake if Angat Dam’s supply is inefficient.
The Department of Finance has maintained that the loan it entered with China could be considered a normal agreement like the ones sealed by past administrations with Japan, Korea, and France.
Colmenares, however, hit back at DOF and dared the government agency to specify the loan agreements with other countries that also have a confidentiality clause.
“I challenge the DOF to name 10 loans with countries other than China but with the same confidentiality clauses as the Kaliwa loan. If the DOF cannot find other loans with the same confidentiality clause as the Kaliwa loan, then the DOF should take back its usual statement that these are standard provisions and admit that such loans as the Kaliwa loan indeed are lopsided in favor of China,” Colmenares said.
