ILOILO CITY – A South Korean firm is under fire for alleged non-payment of royalty fees in the extraction of sand and gravel in the ancestral domain of Indigenous Peoples (IPs) for the construction of the mega dam in Calinog, Iloilo.
The National Irrigation Administration (NIA) is also being questioned for alleged inaction over the foreign contractor’s violations in the construction of the mega dam.
Daewoo Engineering and Construction Co. Ltd. has been accused of not paying royalty fees for extracting sand and gravel from the ancestral domain of the Panay Bukidnon IPs while building the Jalaur River Multipurpose Project-Stage II (JRMP-II).
Sub-contractor Trimluv Builders and Supply of Negros Occidental accused Daewoo of illegally sub-contracting work for the JRMP-II’s high-line canal project.
Trimluv is set to collect a maximum of P15 million for work on behalf of Daewoo but legal counsel Aimee Quevenco disclosed that Daewoo challenged them to file a suit in Singapore if Trimluv really wants to be paid.
The JRMP-II is the flagship program of NIA in the Visayas and is touted to be the biggest dam outside of Luzon when finished by next year.
A pet project of former Sen. Franklin Drilon, the JRMP-II aims to irrigate 31, 840 hectares of farmlands and improve rice production in Iloilo as well as build a hydropower plant and provide potable drinking water.
The project has an P11.2-billion allotment and the JRMP-II took an P8.9-billion loan from Export-Import Bank (Eximbank) of South Korea to fund construction.
“We call on President Marcos as the Secretary of Agriculture, the South Korean government, former Sen. Drilon, the officials of NIA to know what Daewoo is doing here,” pleaded Renato Casinao, former Calinog vice mayor and an IP.
The IPs and Trimluv lamented that Daewoo is abusing its discretion when the Philippine government borrowed P8.9 billion from South Korea to build the three separate dams and reservoirs.
The IPs and Trimluv lamented the inaction from NIA as the governing agency that is supposed to oversee contractor Daewoo.
The JRMP-II Project Management Office (PMO) said in a statement that the issue of loyalty fees is being discussed.
“We are talking to the IP leaders regarding the fixing of the amount of royalty fee (for the extraction of sand and gravel). We’ve requested them already to fast-track their counterproposal,” the JRMP-II PMO in a statement on Wednesday, Sept. 28.
“As for Trimluv, a communication was already sent to them and our office will wait for their response,” the JRMP-II PMO added.