STA. MARIA -- The National Government and Export-Import Bank of China signed a P4.5-billion loan agreement Sunday for the construction of San Roque Dam re-regulating pond.

Secretary Hermogenes Esperon Jr. of the Presidential Management Staff (PMS) announced the plan here last Saturday during the oath taking of the members of the Associations of AFP-PNP and other Servicemen of the Sixth district of Pangasinan.

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Esperon himself is the Cabinet Officer for Regional Development (Cord).

He said the groundbreaking rite for the P4.5 billion re-regulating pond (irrigation component of the dam) will be held on November 12.

He is not sure yet, though, whether President Gloria Macapagal-Arroyo will be able to attend the activity.

Expected to be present is Agriculture Secretary Arthur Yap.

Esperon said the winning bidder for the project was China Agricultural Machinery Company based in China. The groundbreaking will not happen unless the loan agreement is signed.

The San Roque Multi-Purpose Dam is situated in San Manuel town. Aside from power and flood control, its third component is irrigation, which is the re-regulating pond to be constructed.

The re-regulating pond is 300 meters in length and about 12 meters in height. Accordingly, it can impound about 4.5 million cubic meters of water released from the turbines of the San Roque Power Plant.

It can irrigate about 70,000 hectares of farmland in Pangasinan and the neighboring provinces of Nueva Ecija and Tarlac.

"This is good news and is very timely response to all the controversies that went with San Roque recently. And this (re-regulating pond) is something we farmers should look forward to. Rain fed farm lands will then have water even during dry season, and the farmers can have up to three cropping a year," he said.

"Another important thing is the fourth component of the dam. It will also serve as the source of potable drinking water which can supply at least 14 towns and at least two cities, Urdaneta and Dagupan," Esperon added.

The water coming from the dam goes down to the Agno river, the third largest river in the Philippines which pass through several towns in the sixth, fifth, third and second districts of Pangasinan and exits to the Lingayen gulf.

Meanwhile, Esperon said the priority rehabilitation works is being done on the river dikes destroyed/damaged by the recent flooding caused by typhoon Pepeng. Portions of the damaged dikes are in the towns of Rosales, Villasis, Sto. Tomas and San Nicolas.

"These dikes are being prioritized to prevent flooding in case of strong and continuous rains," he said.

"Former President Fidel V. Ramos could attend if the groundbreaking is scheduled Monday. I'm not sure if he can make it though on Thursday," the PMS chief stated.