JRMP II canal system costs rival budget for three dams

By Rjay Zuriaga Castor

The construction cost of the 81-kilometer highline canal and related irrigation components under the Jalaur River Multi-Purpose Project Stage II (JRMP II) is nearly equal to the combined budget for the project’s three dams.

JRMP II spokesperson Steve Cordero told Daily Guardian that the price runs into the billions as it includes the highline, main, and lateral canals, as well as various irrigation structures.

“The cost of constructing the three dams is almost equivalent to that of the highline canal and the rest of the irrigation components,” he said.

JRMP II’s dam components include the 109-meter-high Jalaur High Dam, the project’s main dam; the 38.5-meter Jalaur Afterbay Dam; and the 10-meter Alibunan River Catch Dam.

Cordero explained that the canal system covers a much broader area than the dams, with approximately 80 kilometers of highline canal plus an additional 80 kilometers of main and lateral canals.

He said the highline canal will traverse nine towns, while the main and lateral canals will serve irrigation needs across 17 towns.

“The network of canals is extensive and has numerous components, so the cost easily reaches billions,” he said, adding that the amount should not be seen as “costly” given the scale of civil works involved.

Korean contractor Daewoo Engineering & Construction Co. completed about 16 kilometers of the highline canal before its contract with the National Irrigation Administration (NIA) ended on Nov. 15, 2024.

Cordero issued the clarification following claims by the Jalaur River for the People Movement (JRPM), which raised transparency concerns after bidding documents showed the highline canal project cost PHP 819 million for just 6.5 kilometers.

“The average cost for the four packages is therefore around PHP 125 million per kilometer. Using this average, constructing the [remaining] 65-kilometer canal would cost approximately PHP 8.125 billion,” JRPM said.

The group also pointed out that the figure already represents nearly 40 percent of the original project budget and closely matches the PHP 8.48 billion additional funding approved in August 2023.

Cordero said the highline canal was divided into 13 contract packages and awarded in tranches to local contractors with “Triple A” licenses.

He noted that Daewoo had admitted difficulty in working on both the dams and canals simultaneously due to the project’s massive scope.

“We multiplied the contractors because the smaller the coverage, the faster it will end,” Cordero said.

“And the more they can focus on certain sections of the canal, the better we can implement the project simultaneously while ensuring the quality of work,” he added.

He also explained that environmental and social mitigating measures have been introduced since 2022 to ensure the canal system’s long-term sustainability.

“It’s not just a plain canal anymore; additional structures are being built along it to make sure it can be used for a longer time,” he said.

INCITING HATE OF NIA 

Cordero accused JRPM of inciting public distrust toward NIA by spreading baseless claims regarding Daewoo’s non-continuation of the highline canal project.

JRPM alleged that Daewoo pulled out due to the terrain’s ruggedness and argued that this violated the terms of the tied loan used to fund the project.

“When the loan was approved, it was clear this was a tied loan. The funder had its own contractor. Why is NIA suddenly bringing in local contractors now?” JRPM questioned.

Cordero clarified that the termination of Daewoo’s contract was not due solely to difficult terrain but also involved cost escalation and other factors.

“It’s hard to say that the statement of JRPM is not true. And we really find them malicious. They’re trying to incite hate against the NIA and for people to believe in concerns that are not grounded in facts,” he said.

He explained that although implementation of the highline canal began in 2023 or 2024, the bidding was based on 2016 prices, which contributed to financial strain.

He emphasized that the contract between NIA and Daewoo ended through mutual agreement, as allowed under the original contract.

“Both parties agreed to the amendment to the contract, which is also provided under the original contract, where it was said that both parties may resort to a mutual amendment or change of the scope of the contract,” he said.

Cordero confirmed that construction is ongoing, with completed bids, mobilized contractors, and concrete works underway.