Excess collections for Kaliwa Dam may burden consumers: COA

Adrian Ayalin, ABS-CBN News

<div class='embed-wrap'><figure data-feedback='fb:likes,fb:comments'><img alt='The entrance of the Kaliwa Dam project on Mar. 28, 2023. Jervis Manahan, ABS-CBN News' src='https://sa.kapamilya.com/absnews/abscbnnews/media/2023/life/03/28/20230328-kaliwa-dam.jpg' ><figcaption>The entrance of the Kaliwa Dam project on Mar. 28, 2023. Jervis Manahan, ABS-CBN News</figcaption></figure></div>MANILA -- Water consumers may have to pay for the "excess collections" meant to fund the construction of the Kaliwa Dam, the Commission on Audit said. COA said it was concerned that the P845 million excess collections by the Metropolitan Waterworks and Sewerage System (MWSS) from Maynilad Water Services and Manila Water Company will be passed on to consumers.<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/03/28/23/kaliwa-dam-to-be-fully-operational-by-2027-says-mwss'>Kaliwa Dam to be 'fully operational' by 2027 says MWSS</a></li></ul>State auditors said in the 2022 audit report on the MWSS that the total amount collected from Manila Water and Maynilad was their actual share for the costs and expenses relative to the implementation of the New Centennial Water Source - Kaliwa Dam Project and for the salaries and wages of Bantay Gubat as well as other expenses for the Ipo Watershed Development Program.Included in the excess collections for the Kaliwa Dam Project were P310.736 million standby cost for civil works, P51.834 million for pre-construction activities, P160 million one-time disturbance compensation for Indigenous Cultural Communities or ICCs, and Indigenous Peoples or IPs.RELATED VIDEO<figure class='op-interactive'><iframe height='315' src='https://www.youtube.com/embed/7rekx3wYvL8?enablejsapi=1' width='560'></iframe></figure><div class='iwantbar'>Watch more News on <a href='https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news' target='_blank'>iWantTFC</a></div>The MWSS management told the audit team that the concessionaires were obligated to pay all the necessary local counterpart funds for the execution of the project.On October 4, 2018, the MWSS, Maynilad and Manila Water entered into an Amended Memorandum of Agreement for the Kaliwa Dam Project. <ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/news/02/20/23/indigenous-peoples-groups-protest-kaliwa-dam-project'>Indigenous peoples advocates hold march to protest Kaliwa dam project</a></li></ul>“MWSS should be prudent at all times in its determination of billings to the concessionaires for its actual share of costs and expenses,” the audit team said.“All the fees and charges received from the concessionaires will be recovered by the concessionaires through collection of tariffs from the consumers,” the audit team added.The audit team also noted that there is no approval from the Department of Finance (DOF) for the excess collections of MWSS.“The subject collections are unauthorized and in effect will result to irregular expenditures of the concession which will be recovered from the consuming public through tariffs,” the audit team said.The audit team recommended the immediate suspension of the billings and collections of additional costs from the concessionaires unless there is expressed approval from the DOF.The MWSS management for its part insisted that the costs and expenses were covered under Section 8.1 of the concession agreement which included “development of new water sources.”<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/news/multimedia/slideshow/03/28/23/look-construction-of-kaliwa-dam-project-tunnel-outlet-portal'>LOOK: Ongoing construction of Kaliwa Dam Project-Tunnel Outlet Portal</a></li></ul>“Lastly, they argue that the recommendation of ceasing the billings and collections related to the expenses/costs incurred relative to the implementation of the NCWS-KDP and the Ipo Watershed Development Program, prevents the MWSS Central Office from delivering its mandate and its obligations prescribed in the 2021 RCA,” the audit team noted.A copy of the report was received by MWSS Administrator Leonor Cleofas on August 9, 2023.

State auditors said in the 2022 audit report on the MWSS that the total amount collected from Manila Water and Maynilad was their actual share for the costs and expenses relative to the implementation of the New Centennial Water Source - Kaliwa Dam Project and for the salaries and wages of Bantay Gubat as well as other expenses for the Ipo Watershed Development Program.Included in the excess collections for the Kaliwa Dam Project were P310.736 million standby cost for civil works, P51.834 million for pre-construction activities, P160 million one-time disturbance compensation for Indigenous Cultural Communities or ICCs, and Indigenous Peoples or IPs.RELATED VIDEO<figure class='op-interactive'><iframe height='315' src='https://www.youtube.com/embed/7rekx3wYvL8?enablejsapi=1' width='560'></iframe></figure><div class='iwantbar'>Watch more News on <a href='https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news' target='_blank'>iWantTFC</a></div>The MWSS management told the audit team that the concessionaires were obligated to pay all the necessary local counterpart funds for the execution of the project.On October 4, 2018, the MWSS, Maynilad and Manila Water entered into an Amended Memorandum of Agreement for the Kaliwa Dam Project. <ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/news/02/20/23/indigenous-peoples-groups-protest-kaliwa-dam-project'>Indigenous peoples advocates hold march to protest Kaliwa dam project</a></li></ul>“MWSS should be prudent at all times in its determination of billings to the concessionaires for its actual share of costs and expenses,” the audit team said.“All the fees and charges received from the concessionaires will be recovered by the concessionaires through collection of tariffs from the consumers,” the audit team added.The audit team also noted that there is no approval from the Department of Finance (DOF) for the excess collections of MWSS.“The subject collections are unauthorized and in effect will result to irregular expenditures of the concession which will be recovered from the consuming public through tariffs,” the audit team said.The audit team recommended the immediate suspension of the billings and collections of additional costs from the concessionaires unless there is expressed approval from the DOF.The MWSS management for its part insisted that the costs and expenses were covered under Section 8.1 of the concession agreement which included “development of new water sources.”<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/news/multimedia/slideshow/03/28/23/look-construction-of-kaliwa-dam-project-tunnel-outlet-portal'>LOOK: Ongoing construction of Kaliwa Dam Project-Tunnel Outlet Portal</a></li></ul>“Lastly, they argue that the recommendation of ceasing the billings and collections related to the expenses/costs incurred relative to the implementation of the NCWS-KDP and the Ipo Watershed Development Program, prevents the MWSS Central Office from delivering its mandate and its obligations prescribed in the 2021 RCA,” the audit team noted.A copy of the report was received by MWSS Administrator Leonor Cleofas on August 9, 2023.

COA said it was concerned that the P845 million excess collections by the Metropolitan Waterworks and Sewerage System (MWSS) from Maynilad Water Services and Manila Water Company will be passed on to consumers.<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/03/28/23/kaliwa-dam-to-be-fully-operational-by-2027-says-mwss'>Kaliwa Dam to be 'fully operational' by 2027 says MWSS</a></li></ul>

<div class='embed-wrap'><figure data-feedback='fb:likes,fb:comments'><img alt='The entrance of the Kaliwa Dam project on Mar. 28, 2023. Jervis Manahan, ABS-CBN News' src='https://sa.kapamilya.com/absnews/abscbnnews/media/2023/life/03/28/20230328-kaliwa-dam.jpg' ><figcaption>The entrance of the Kaliwa Dam project on Mar. 28, 2023. Jervis Manahan, ABS-CBN News</figcaption></figure></div>MANILA -- Water consumers may have to pay for the "excess collections" meant to fund the construction of the Kaliwa Dam, the Commission on Audit said.

Water consumers may have to pay for the 'excess collections' meant to fund the construction of the Kaliwa Dam, the Commission on Audit said. 

Excess collections for Kaliwa Dam may burden consumers: COA | ABS-CBN News

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Excess collections for Kaliwa Dam may burden consumers: COA

Excess collections for Kaliwa Dam may burden consumers: COA