SMC backs Dinagat bid to tap Sabang Dam water resource

SAN FRANCISCO, Agusan del Sur — Conglomerate San Miguel Corp. (SMC) has committed to grant the provincial government of Dinagat Islands access to the Sabang Dam reservoir to resolve the island province’s persistent water supply shortages.

The deal was finalized during a high-level meeting between Dinagat Islands Gov. Nilo P. Demerey Jr. and SMC Chairman and Chief Executive Officer Ramon S. Ang on Thursday at the SMC Head Office in Ortigas, Pasig City, according to a social media update posted by Dinagat Islands Board Member Nilo Marco M. Demerey.

Under the agreement, the province will be allowed to tap the Sabang Dam, located in Barangay Del Pilar in the municipality of Cagdianao, to serve as an additional bulk water source for local communities.

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READ: Dinagat Islands rolls out measures vs water crisis

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Built in the early 1980s by the Philippine Nickel Corporation for industrial mining operations, the dam is the province’s largest man-made reservoir. The dam is a government asset, but it is located within SMC’s massive 25,000-hectare mining concession, requiring corporate clearance, coordination, and right-of-way permissions for municipal water extraction.

The development comes at a critical time for the province. Dinagat Islands was recently placed under a state of calamity due to a severe water crisis triggered by a prolonged dry spell. Rivers and local gravity-fed systems have dried up, leaving over 18,000 residents vulnerable to acute water shortages.

Technical teams from both the provincial government and SMC have begun mapping the infrastructure requirements to utilize the reservoir. The project will entail constructing extensive pipeline networks, treatment facilities, and supporting logistical systems to distribute water to municipal water districts.

To address immediate distribution gaps while the long-term infrastructure is being engineered, Ang committed to donating a brand-new stainless steel water tank truck to the province. The vehicle will ferry potable water to communities currently experiencing acute supply disruptions.

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READ: Water aid arrives in Dinagat Islands amid severe crisis

Gov. Demerey stated the collaboration provides a critical opportunity to stabilize the province’s water security and build resilience against future climate-induced dry spells.

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Aside from utility infrastructure, the meeting reopened talks on broader industrial ties between the conglomerate and the local government. In July 2022, Gov. Demerey first announced SMC plans to invest $500 million (approximately ₱27.7 billion) to establish an electric vehicle (EV) battery manufacturing plant within its mining claims in the province, which span across the mineral-rich towns of Cagdianao, San Jose, and Basilisa.

The planned facility aims to tap the island’s vast natural deposits of nickel, manganese, chromite, and iron—the raw materials essential for producing electric car batteries. During Thursday’s high-level huddle, officials touched on prospective SMC investments to further advance local industrialization, including the feasibility of establishing a new agri-industrial zone to stimulate employment and economic growth.

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Joining the governor in the meeting were Board Member Demerey, Atty. Niel Edward M. Demerey, Atty. Nilo V. M. Demerey, Provincial Planning and Development Officer Jorge Daligdig, Provincial Engineer Lord Iven Maybuena, and Concordio Desamparado./coa