Regulator Metropolitan Waterworks and Sewerage System (MWSS) is now ready to go into negotiations with San Miguel Bulkwater Company (SMBC) for the $1-billion Laiban Dam project after the period for the Swiss challenge had lapsed without any competing proposal submitted.

In a press briefing on Thursday, MWSS administrator Diosdado Jose Allado said they will now follow the rules for entering into a joint venture with a private entity and will soon begin negotiating with the San Miguel Corporation unit over the terms of the agreement.

However, Allado stressed that they have not yet awarded the contract to SMBC since they will still have to hammer out an agreement and settle contentious issues such as the reported “take or pay” provision in the SMBC proposal.

He also described as “baseless, imprudent and reckless” the charges hurled against the MWSS on its handling of the private sector proposal to build the dam in Tanay, Rizal.

Allado also pointed out that the Justice Department has also given the opinion that the joint venture guidelines are legal, and not against public policy or morals.

“All the legal issues concerning these rules have been passed upon by the OGCC (Office of the Government Corporate Counsel) and have been sustained by the DOJ in a number of cases of similar nature,” he said.

Allado also defended their non-disclosure of the details of the SMBC offer pointing out that the joint venture guidelines provide that “proprietary information shall, however, be respected, protected, and treated with confidentiality. As such, it shall not form part of the tender and related documents.”

He explained that while interested parties can examine the proposal, the MWSS cannot allow them to photocopy since “we shall be open to criminal and administrative charges.”