Contract to build Iloilo dam project signed with South Korean company

By Victor V. Saulon, Sub-Editor
THE National Irrigation Administration (NIA) on Monday signed a contract with a South Korean builder for the construction of a dam in Iloilo province worth P11.212 billion.
In ceremonies at NIA’s headquarters, the agency through its Administrator Ricardo R. Visaya formally closed the deal with representatives from Daewoo Engineering and Construction Co., Ltd.
The Jalaur River multipurpose project will include a 109-meter high dam, a 38.5-meter afterbay dam, a 10-meter catch dam, and an 80.74-kilometer canal. It is funded by the South Korean government through the Export-Import Bank of Korea.
Pilipina P. Bermudez, a manager with NIA’s public affairs information staff, in an interview said next to the Jalaur project, 10 other “flagship” infrastructure projects are undergoing feasibility studies, six of which already have an estimated cost.
“These will be funded by China,” she said, referring to official development assistance (ODA) from the Chinese government.
“The terms are light,” she added, without disclosing specific numbers.
Of the six projects worth nearly P55 billion, two are on the agency’s priority list: the second stage of the Ilocos Norte irrigation project valued at P22.36 billion, using a valuation from two years ago; and the Panay River basin integrated development project in Iloilo and Capiz worth P19.357 billion.
Ms. Bermudez said she expects the two projects to obtain funding from China when President Xi Jinping visits the Philippines in November.
The four other projects are the Bohol northeast basin multipurpose dam which carries an indicative cost of P4.134 billion; Asbang small reservoir irrigation project in Davao del Sur at P1.355 billion; Tumauini River multipurpose project in Isabela at P4.121 billion; and Gregorio del Pilar impounding project in Ilocos Sur at P3.452 billion.
During the Jalaur contract signing, NIA officials noted that the project was mandated under Republic Act 2651, which was enacted by Congress in 1960.
Due to insufficient funds, the project was implemented in two stages. The first stage is the rehabilitation of existing irrigation systems covering an area of 22,340 hectares. It was completed in 1983.
The second stage is the construction of the high dam, hydropower electric plant, domestic water supply facilities, and watershed management systems. The second phase has been stalled since 1988 for unknown reasons, the agency said.
In a statement issued during the signing, NIA said the construction of big and small-ticket irrigation projects is in line with President Rodrigo R. Duterte’s “Build, Build, Build” under his 10-point socioeconomic agenda to reduce poverty from 21.6% in 2015 to 13-15% in 2022.
NIA said when completed, the Jalaur project’s second stage will be the biggest dam outside Luzon.
The dam is expected to deliver year-round irrigation to 9,500 hectares of new irrigable land and rehabilitate 22,340 hectares served by five existing irrigation systems. These systems straddle 23 municipalities and two cities in Iloilo province, benefitting 24,000 farmers and their families.
The project will also provide other “incidental benefits,” such as flood mitigation, environmental and watershed management, promotion of eco-tourism and fish culture. A 6.6-megawatt hydroelectric power and water supply for domestic and industrial use will be implemented later, NIA said.
The agency is mandated to provide reliable and sustainable irrigation services to farmers through the construction of irrigation systems and the rehabilitation of existing ones.