STA. CRUZ, Laguna—The Belgian firm that was awarded the dredging contract of the Laguna de Bay said it would pursue an international arbitration upon receipt of a formal notice of cancellation, after the Philippine government issued a press statement that the P18-billion Laguna Lake Rehabilitation Project was terminated.
Sources from the Baggerwerken Decloedt en Zoon (BDC) on Saturday said a senior official from the Belgian embassy in the Philippines would also recommend to the Belgian government and to the European community “to suspend all investments in the Philippines, as it is an unreliable and unprofessional country to do business with.”
The source said on Friday that the Belgian official met with an undersecretary of the Department of Foreign Affairs and the BDC to discuss the contract, after Malacañang announced earlier that afternoon that the deal was canceled.
Quoted from the website of the Official Gazette, a press statement from the Office of the Presidential Spokesperson said: “The Laguna Lake Rehabilitation Project stays canceled, despite pronouncements from Laguna Lake Development Authority (LLDA) General Manager Rodrigo Cabrera that the deal is under review.”
“[The Belgian official] felt insulted at the insinuation that Belgium provided ODA (official development assistance) to fund [a] graft-ridden project,” the source added in a text message to the Inquirer.
Not informed
Meanwhile, BDC consultant Arthur Ponce said they were surprised with President Benigno Aquino III’s cancellation of the project, which they only learned from media reports.
“We never received any formal or even an informal notice of cancellation from the other contracting party,” he said, referring to the Department of Environment and Natural Resources.
“This is the first time our contract was canceled by a press statement,” he said.
Also according to Malacañang’s press statement: “Presidential spokesperson Edwin Lacierda, however, refuted (Cabrera’s) statements. ‘I have talked with President Aquino. It is clear that his views on this deal have not changed. It has already been canceled),’ Lacierda said.”
“‘The President has also already instructed Executive Secretary (Paquito) Ochoa to invite General Manager Cabrera to explain his statements,’ Lacierda added.”
The source said “the President probably got irked by Cabrera’s statement,” and that a meeting at the Palace is scheduled Monday.
On Thursday, Cabrera said President Aquino was far from shelving the project, which according to him, was under review.
He was asked by the Inquirer of the President’s stand on shelving the deal, he said, “not totally shelved, there are revisions to put in some more components,” he said on the sidelines of a Laguna fishers’ forum organized by nongovernment coalition Mamamayan para sa Pagpapanatili at Pagpapaunlad ng Lawa ng Laguna (Mapagpala).
Clarification
But on Friday, Cabrera issued a statement to the Inquirer, clarifying that “the President was quite clear in his instructions to the Cabinet on Oct. 1 where he called for a thorough review of the deal that was forged towards the end of the previous administration.”
The additional components Cabrera was referring to were the watershed rehabilitation, global positioning mapping system of the lake, relocation of squatters and economic programs for fishermen, which he said did not directly come from Mr. Aquino, but were part of the discussions between the DENR and the LLDA on what the lake really badly needs at present.
The Philippine government signed an agreement with the Belgian government on the deal last April.
Cabrera, however, said he was uncertain when Mr. Aquino would give the green light for the project.
The lake dredging contract has been put on hold by the Department of Finance.
Cabrera, however, defended the contract against accusations that it was among the Arroyo administration’s midnight deals.
“It went through and completed the processes, only that it was signed at the time [when the Arroyo administration was about to end its term],” he said.
Ponce said they had always been open to changes in the project, as long as these are within the framework of the original contract.
Dredging
Cabrera said he also saw the need to dredge the lake, especially after floods brought by Storms “Ondoy” and “Santi” caused the lake to overflow.
“We have consulted several experts and according to them, there is no doubt the lake should be dredged,” he said.
Melchor Magano, Mapagpala chair, said his group wasn’t opposing the dredging but the other components of the contract, especially the proposal to build a 12-station ferry lane in the lake.
He said at least 70,000 fishermen dependent on the lake for their livelihood would be displaced if a ferry lane took precedence over fishing areas.
Cabrera said the ferry system would help speed up transportation from Manila to South Luzon and reduce road pollution.
Maricar Cinco, Inquirer Southern Luzon
Sources from the Baggerwerken Decloedt en Zoon (BDC) on Saturday said a senior official from the Belgian embassy in the Philippines would also recommend to the Belgian government and to the European community “to suspend all investments in the Philippines, as it is an unreliable and unprofessional country to do business with.”
The source said on Friday that the Belgian official met with an undersecretary of the Department of Foreign Affairs and the BDC to discuss the contract, after Malacañang announced earlier that afternoon that the deal was canceled.
Quoted from the website of the Official Gazette, a press statement from the Office of the Presidential Spokesperson said: “The Laguna Lake Rehabilitation Project stays canceled, despite pronouncements from Laguna Lake Development Authority (LLDA) General Manager Rodrigo Cabrera that the deal is under review.”
“[The Belgian official] felt insulted at the insinuation that Belgium provided ODA (official development assistance) to fund [a] graft-ridden project,” the source added in a text message to the Inquirer.
Not informed
Meanwhile, BDC consultant Arthur Ponce said they were surprised with President Benigno Aquino III’s cancellation of the project, which they only learned from media reports.
“We never received any formal or even an informal notice of cancellation from the other contracting party,” he said, referring to the Department of Environment and Natural Resources.
“This is the first time our contract was canceled by a press statement,” he said.
Also according to Malacañang’s press statement: “Presidential spokesperson Edwin Lacierda, however, refuted (Cabrera’s) statements. ‘I have talked with President Aquino. It is clear that his views on this deal have not changed. It has already been canceled),’ Lacierda said.”
“‘The President has also already instructed Executive Secretary (Paquito) Ochoa to invite General Manager Cabrera to explain his statements,’ Lacierda added.”
The source said “the President probably got irked by Cabrera’s statement,” and that a meeting at the Palace is scheduled Monday.
On Thursday, Cabrera said President Aquino was far from shelving the project, which according to him, was under review.
He was asked by the Inquirer of the President’s stand on shelving the deal, he said, “not totally shelved, there are revisions to put in some more components,” he said on the sidelines of a Laguna fishers’ forum organized by nongovernment coalition Mamamayan para sa Pagpapanatili at Pagpapaunlad ng Lawa ng Laguna (Mapagpala).
Clarification
But on Friday, Cabrera issued a statement to the Inquirer, clarifying that “the President was quite clear in his instructions to the Cabinet on Oct. 1 where he called for a thorough review of the deal that was forged towards the end of the previous administration.”
The additional components Cabrera was referring to were the watershed rehabilitation, global positioning mapping system of the lake, relocation of squatters and economic programs for fishermen, which he said did not directly come from Mr. Aquino, but were part of the discussions between the DENR and the LLDA on what the lake really badly needs at present.
The Philippine government signed an agreement with the Belgian government on the deal last April.
Cabrera, however, said he was uncertain when Mr. Aquino would give the green light for the project.
The lake dredging contract has been put on hold by the Department of Finance.
Cabrera, however, defended the contract against accusations that it was among the Arroyo administration’s midnight deals.
“It went through and completed the processes, only that it was signed at the time [when the Arroyo administration was about to end its term],” he said.
Ponce said they had always been open to changes in the project, as long as these are within the framework of the original contract.
Dredging
Cabrera said he also saw the need to dredge the lake, especially after floods brought by Storms “Ondoy” and “Santi” caused the lake to overflow.
“We have consulted several experts and according to them, there is no doubt the lake should be dredged,” he said.
Melchor Magano, Mapagpala chair, said his group wasn’t opposing the dredging but the other components of the contract, especially the proposal to build a 12-station ferry lane in the lake.
He said at least 70,000 fishermen dependent on the lake for their livelihood would be displaced if a ferry lane took precedence over fishing areas.
Cabrera said the ferry system would help speed up transportation from Manila to South Luzon and reduce road pollution.
Maricar Cinco, Inquirer Southern Luzon
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