Only SC can stop China-funded Chico River pump irrigation project —Palace

Only an order from the Supreme Court (SC) can stop the implementation of the China-funded Chico River pump irrigation project, Malacañang said Friday.

Presidential spokesperson Salvador Panelo issued the statement after the Makabayan bloc announced on Thursday plans to question the constitutionality of the loan agreement, particularly the provision which allows China to seize patrimonial assets of the Philippines if the country would default on its payments.

"Well, the Palace always welcomes any move to question its action if they feel it’s not within the law," Panelo told reporters.

Asked if a legal challenge will affect the project's implementation, Panelo said: "If there is no order from the Supreme Court stopping it, then it’s a go."

Even before some opposition legislators have thought of questioning the $62-million loan before the high court, SC Senior Associate Justice Antonio Carpio has made known his reservations about the project. He also criticized the same provision.

The Palace and the Department of Finance have said the possibility of China taking Philippine assets would never happen because Manila had always been a responsible borrower and that the law requires automatic appropriation for debt obligations.

They also said the contract provides that assuming China wins the arbitration in Beijing, the decision would still have to be validated by Philippine courts before it can be enforced.

The 20-year loan deal for the irrigation project was inked by Finance Secretary Carlos Dominguez III and China's Ambassador to the Philippines Zhao Jianhua on April 10, 2018.

The project will provide a stable supply of water to around 8,700 hectares of agricultural land, benefit 4,350 farmers and their families and serve 21 barangays in the provinces of Kalinga and Cagayan in Northern Luzon once completed.

As for opposition to the construction of the Kaliwa Dam, which is envisioned to give additional water supply to Metro Manila, Panelo said: "The President will consider all the suggestions, and then decide eventually whether he will respond favorably or not."

"The President is always open to that. He listens," Panelo said.

Environmental groups and party-list group Bayan Muna said the China-funded Kaliwa Dam project will displace indigenous people and submerge villages in Rizal and Quezon provinces. —LDF, GMA News