Daewoo’s Megadam Contract Ends, But Completion Remains on Track — NIA

By Rjay Zuriaga Castor

The contract between Daewoo Engineering & Construction Co. Ltd. and the National Irrigation Administration (NIA) for the Jalaur River Multipurpose Project Stage II (JRMP-II) expired on November 15, 2024, but the project remains on schedule, according to NIA.

JRMP-II spokesperson Steve Cordero confirmed to Daily Guardian that Daewoo opted not to renew the contract, resulting in a mutual amendment that reduced the company’s deliverables for the project.

“It was a mutual amendment of contract,” Cordero said, emphasizing the agreement was amicable.

Daewoo began civil works for JRMP-II on April 10, 2019, after receiving the notice to proceed in 2018.

The South Korean firm successfully completed the construction of three dams: a 109-meter-high dam, a 38.5-meter afterbay dam, and a 10-meter Alibunan catch dam.

For the high line canal, Daewoo finished over 16 kilometers of irrigation work out of the planned 80 kilometers.

Despite the contract’s expiration, Cordero assured that the irrigation component will continue under local minor contracts.

“This is part of the regular construction activity in the infrastructure aspect of NIA. We believe that with the engagement of local contractors, we can expedite the implementation,” he said.

He noted that local contractors have extensive experience with NIA irrigation projects and are familiar with the terrain, soil, and water conditions, which will help accelerate construction.

To avoid delays, Cordero stressed the importance of expediting the procurement process for local contractors.

“We are already in the procurement process. We started the bidding early this year. We need multiple packages for this,” he explained.

NIA plans to complete the bidding process before the summer season this year to allow construction to begin immediately.

Among the anticipated challenges in constructing the irrigation canals are weather conditions and right-of-way acquisition.

The irrigation component of JRMP-II is targeted for completion by December 2026, marking the full operation of the project.