39 Seventh Street, Goodrich Village, Concepcion Uno, Marikina City

07 July 2017
HON. MARK A. VILLAR
Secretary, Department of Public Works and Highways
Subject : BOT/PPP Contracting - the Best Means of Optimizing Projects & Driving Economic Growth
Dear Sec. Mark A. Villar:
This is a follow-up of my letter on the subject dated 07 March 2017, copy of which is herewith attached.
It came to my knowledge that you relinquished your chairmanship of the MWSS Board of Trustees.
However, your reply is still relevant and is required under RA No. 6713. Specifically, your answers to the
following items are sought for.
1. DPWH justification for its preferred implementing mode of the NSSP, if other than BOT contract.
2. DPWH justification for its preferred implementing mode of Laiban Dam Project if other than BOT
contract. The DPWH stand is relevant because according to newspaper report, DPWH is the lead
agency in the implementation of the proposed Laiban Dam.
In addition to the information and suggestions already given, the following are offered to minimize the
unit cost of treated water from Laiban Dam.
1. Laiban Dam must be implemented ahead of the 600 MLD Kaliwa Dam in order to minimize its
idle capacity. Implementing the 600 MLD Kaliwa Dam ahead will not only compromise the
financial viability of Laiban Dam. It will also postpone further the implementation of Laiban Dam
and consequently make it more expensive because of the growing number of structures in the
proposed reservoir area. This concern is raised because it has been reported in that the 600 MLD
Kaliwa Dam will be implemented ahead.
2. Allow the existing MWSS concessionaires to sell bulk water outside its service area, extending
up to Calamba and to the unserved areas of Cavite as this is allowed under the MWSS Charter
as amended by P.D. No. 1406. This will minimize further the idle capacity of the project and
consequently the unit cost of treated water.
Needless to say, the fact that the present administration has been announcing that its Build-Build Program
will be funded from ODA funds and increased taxes, means that the government lacks financial resources.
It is therefore imperative that projects that can be implemented best through a BOT mode should be
implemented as such to boost the national economy without increasing taxes and incurring tied loans.

To facilitate the approval of BOT projects, it is further suggested that NEDA be requested to leave the fine
tuning of project FIRR to the bidders as the best test of financial feasibility is the participation of bidders
as no investor will invest in a losing business. To facilitate the procurement process, unsolicited proposals
should be discarded as this has been proven to discourage the participation of price challengers and is
prone to corruption.

Respectfully yours,

Bienvenido G. Gaurino1
Cc: 1. His Excellency Pres. Rodrigo R. Duterte
2. Honorable Sen. Grace Poe Chairwoman, Public Services
3. Honorable Sen. Manny Pacquiao, Chairman, Public Works
4. Honorable Benjamin E. Diokno, DBM Secretary
5. Honorable Ernesto M. Pernia, Socio-Economic Planning Secretary and NEDA Director General
1- Former MWSS official and consultant as well as consultant in some projects of Maynilad Water and Manila Water