GOV’T OR PRIVATE?: NIA Finalizing Bulk Water Policy for Jalaur Dam

By Rjay Zuriaga Castor

The National Irrigation Administration is more than halfway through crafting policy guidelines for the bulk water supply component of the Jalaur River Multi-Purpose Project Stage II, amid public concerns over potential privatization.

JRMP II spokesperson Steve Cordero said the guidelines are being developed in collaboration with the Asian Development Bank under a technical assistance agreement signed in September 2024.

Cordero assured the public that regulatory agencies are thoroughly reviewing the policy to protect public interest, whether the component is awarded through a public-private partnership or a government-to-government arrangement.

“We’re more than halfway in the policy we’re working on,” he said in a phone interview.

“The policy is being reviewed properly by the regulating agencies that are being consulted on the processes that need to be followed before we finalize the guidelines.”

Cordero emphasized that due diligence is being observed to determine the most suitable implementation model for the project’s bulk water supply, which will serve domestic and industrial users.

He said awarding the component through a PPP has always been part of the original plan, including potential participation from Aboitiz InfraCapital.

AIC has proposed a project to deliver 86 million liters per day of potable bulk water to Iloilo City and nearby areas.

Its proposed rate is PHP40 per cubic meter, higher than Metro Pacific Iloilo Water’s current domestic rate of about PHP22 per cubic meter, which is pending adjustment to PHP29.19.

“It’s not true that it will make people’s lives more difficult if we have a PPP,” Cordero said.

“NIA is making sure to choose the best option for this project and for the stakeholders who will receive the bulk water.”

He added that even during the project’s feasibility, development, and engineering stages, the PPP model was already seriously considered.

“It was very clear in earlier discussions that private partners would be involved, as this setup had been envisioned even before,” he said.

Cordero said ADB’s technical assistance aims to ensure the efficient implementation of the Jalaur project components.

“This is to make sure that ADB and NIA can come up with a policy that ensures public investment will benefit the public and serve the public’s best interest,” he said.

Irrigation Component in Full Swing

Cordero said construction of JRMP II’s irrigation component is ongoing, with 14 local contractors already awarded work on the 80.7-kilometer high line canal.

He noted that some contractors are scheduled to begin concreting work this June, with further civil works depending on NIA’s available funds.

“The contractors were already mobilized,” he said.

“Some of them have started concreting works for the canal, and construction is progressing simultaneously based on available resources.”

The high line canal is the main conveyance channel for irrigation water.

Its completion is essential, as the bulk water supply component can only begin operations once the canal is fully functional.