Thursday, October 31, 2013

SC issues writ vs Panay dam project

THE SUPREME Court (SC) has issued a writ of kalikasan against the expansion of a dam project in Jalaur River, a major water system in the province of Panay.

In a three-page order, the SC, by authority of Acting Chief Justice Presbitero J. Velasco, Jr., issued the kalikasan writ against the Jalaur River Multi-purpose project (JRMP) and ordered the respondents to make a verified return of the writ within 10 days from receipt.

In a 17-page petition for the issuance of an environmental protection order, former Iloilo Rep. August L. Syjuco, Jr. (2nd district) requested the high court to issue a writ of kalikasan against the expansion of the JRMP project.

Mr. Syjuco said the JRMP’s Phase II would violate the people’s constitutional right to a “balanced and healthful ecology.”

“The benefits offered by this project will be miniscule compared to the disastrous effects it will inevitably cause,” the petition read.

Created by Republic Act (RA) 2651, the JRMP was aimed at regulating and controlling floods caused by the Jalaur River.

The project stored the river’s waters and was used to irrigate agricultural lands and generate power and energy.

In 2009, the National Irrigation Authority (NIA) proposed JRMP’s Phase II which included the construction of three dams measuring around 600 to 800 hectares, which would service 23 municipalities and the cities of Passi and Iloilo.

The proposed expansion would upgrade the existing irrigation systems and supplement power supply.

President Benigno S. C. Aquino III, as chairman of the National Economic and Development Authority (NEDA), approved the project on March 22, 2012 with NIA as lead implementing agency.

In his petition, Mr. Syjuco alleged JRMP II “is ridden with illegalities” and violated several laws as well as the people’s constitutional right to a balanced and healthful ecology and the right to health.

JRMP II allegedly violated RA 8371 or the Indigenous People’s Reform Act (IPRA) when the locals of community of Tumandoks allegedly agreed to the project “through deceit and manipulation”.

“In the same vein, it is not ‘informed’ consent as it was obtained by the exaggeration of benefits without presenting the grave dangers posed by the active fault lines and the susceptibility of the area to landslides,” the petition read.

The project also purportedly violated RA 7160 or the Local Government Code when the project was approved despite lack of consultation and prior approval of local councils.

“Absent either of these mandatory requirements, the project’s implementation is illegal,” the petition read.

The petition further cited potential earthquakes, death of aquatic resources and flooding as among environmental damages that the project would cause in the province.

Other environmental hazards cited in Mr. Syjuco’s petition include: increase of rainfall, intrusion of saltwater to low-lying areas, water depletion, and ecological destruction.

The writ of kalikasan is a legal remedy which aims to protect the people’s right to a “balanced and healthful ecology.” -- Mikhail Franz E. Flores


source:  Businessworld

SC urged to stop Manila transport scheme

A CONSUMER group -- along with thousands of commuters -- yesterday asked the Supreme Court (SC) for a stay order on the implementation of an interim transport terminal (ITT), which prevents provincial buses from entering Manila.

In an 18-page petition for review and prohibition, the Coalition of Filipino Consumers (CFC) also sought to declare as unconstitutional various issuances which created the ITTs for an Integrated Transport System (ITS).

The group’s petition was backed up by some 100,000 signatures from commuters supporting their plea.

“If a temporary restraining order [is not issued], the petitioners could be further irreparably harmed and they may find themselves with no realistic recourse to the courts, or any other means of protecting their interests,” the petition read.

The executive issuances questioned include President Benigno S. C. Aquino III’s Executive Order (EO) 67, which sought for the creation of the ITS, and Administrative Order (AO) 40, which created the ITTs.

The commuters also questioned Memorandum Circular No. 2013-004 of the Land Transportation Franchising and Regulatory Board (LTFRB), which amended the routes of buses entering Manila from Coastal Road and the Manila-Cavite Expressway.

The petitioners said the issuances violated their constitutional rights to due process and equal protection when they were implemented without proper consultations and public hearings.

Named respondents are Executive Secretary Paquito N. Ochoa, Jr., Transportation Secretary Joseph Emilio A. Abaya, Budget Secretary Florencio B. Abad, LTFRB Chairman Winston M. Ginez and Metropolitan Manila Development Authority (MMDA) Chairman Francis N. Tolentino.

EO 67 is based on the Aquino administration’s 2011 to 2016 Philippine Development Plan, which prioritizes the creation of “integrated and multi-modal transport and logistics system under the Public-Private Partnership (PPP) framework.”

“The President recognizes the importance of an organized mass transportation system, which is why he has made it a priority to interconnect the nation’s mass transportation systems such as buses and railways within his term,” Mr. Ochoa earlier said.

AO 40 established interim transport terminals in preparation for the integrated transport system. In turn, the LTFRB issued the memorandum circular which shortened the routes of PUBs to their designated ITTs.

ITTs include Southwest Terminal for provincial buses entering Manila through Coastal Road and Manila-Cavite Expressway, and the North Transport Terminal for provincial buses entering Metro Manila via the North Luzon Expressway and other roads north of Manila.

South Interim Transport Terminal, on the other hand, is intended for buses entering the capital via the South Luzon Expressway and the Skyway.

A similar petition was earlier filed by two teachers commuting to Manila from Cavite.

Panita Ladera and Dolores Salanga earlier asked the high court to declare the ITTs as unconstitutional. -- Mikhail Franz E. Flores


source:  Businessworld

Gov’t pays initial $8 million for NAIA-3

THE GOVERNMENT has paid an initial $8 million (about P346 million) as down payment for the multimillion Manila international airport development project that a Japanese contractor first bagged in 1997.

The government has also given Takenaka Corp. the go signal to start the completion of the system works of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) for it to become fully operational.

“We’ve made our initial down payment of 20% ($8 million) in September but real work would start in November,” Transportation Secretary Joseph Emilio A. Abaya said in a chance interview yesterday.

Takenaka bagged the $40-million rehabilitation project last August.

“They [Takenaka] are abiding by the July 2014 deadline,” Mr. Abaya added.

The rehabilitation works, which is mainly the completion of the 23 system works requirement of NAIA-3, include baggage handling, flight information displays, computer terminals, gate coordination, and fire protection systems, among others.

Mr. Abaya said that of the 23 system works that are required by the government, Takenaka has already procured 14.

Mr. Abaya said that the funding for the payment came from the 2013 budget.

“No need for an item for 2014,” he said, explaining that the whole payment for the project was already included in this year’s budget.

With the said completion, the Department of Transportation and Communications (DoTC) expects NAIA Terminal 3’s annual passenger capacity to double to 13 million passengers from almost 6 million passengers a year. The said terminal posts at least 37,000 passengers daily.

Takenaka was the primary subcontractor of Philippine International Air Terminals Co., Inc. (Piatco), builder of NAIA-3, which had taken the government to court over the cancellation of its contract and the expropriation of the facility.

The NAIA-3 contract, awarded to Piatco in 1997 during the Estrada administration, was declared irregular by the Arroyo government in 2002.

CASE FOR COMPENSATION
Partly owned by Germany’s Fraport AG, Piatco had won the build-operate-transfer (BOT) contract to build NAIA-3.

After the government halted construction of NAIA-3, Piatco and Fraport lodged cases before the International Chamber of Commerce (ICC) in Singapore and the International Center for Settlement of Investment Disputes (ICSID) in Washington DC, respectively.

Takenaka had joined in the dispute to seek compensation.

ICSID and ICC have since ruled in favor of the Philippines after the Supreme Court nullified the government’s contract with Piatco.

Last August, the third division of the Court of Appeals (CA) ordered the government to pay Piatco $371 million, including a 6% annual interest, as just compensation for the takeover of NAIA-3.

This was an amendment to the 2011 decision of the Pasay City Regional Trial Court (RTC) Branch 117, which pegged the just compensation at $116.35 million.

But former Transportation now Local Interior Secretary Manuel A. Roxas II earlier said subsequent government negotiations with Takenaka resulted in both parties agreeing that the Japanese firm would just execute the airport system project, instead of getting compensation.

Mr. Roxas had earlier said talks with Takenaka had been made possible after a Pasay City court allowed the government to set up an escrow account to pay contractors behind the project.

Once NAIA-3 is fully operational, a portion of NAIA-1 operations will be transferred to the new facility in order to decongest the ageing main airport, which is presently undergoing structural rehabilitation.

Currently, only a third of NAIA-3 is equipped with airport systems and only half of the terminal is being utilized, Octavio F. Lina, NAIA-3 terminal manager, had said in November last year.

The DoTC earlier said completion of NAIA-3 coincides with other projects aimed at enhancing the quality and safety of Philippine aviation.

These include the adoption of a world-class aviation CNS/ATM (Communications, Navigation, and Surveillance/Air Traffic Management) System, which will be fully operational by November 2015.

Other improvement projects for various airports across the country are the P434.5-million Upgrading of Night Landing Operations Project, and the P258.9-million Installation/Upgrading of Airfield Lighting Systems and Upgrading of Power Supply Systems Project. -- Lorenz Christoffer S. Marasigan


source:  Businessworld

Monday, October 21, 2013

PPA to develop 8 tourism ports

The Philippine Ports Authority has lined up several infrastructure projects to support the booming cruise tourism in the country, its chief said Monday.

PPA general manager Juan Sta. Ana said the cruise port development would support the country’s status as one of the major cruise destinations in Asia.

Star Cruises-owned Super Star Gemini recently stopped at Pier 15 Super Terminal in South Harbor, Port Area, Manila from its home port in Xiamen, China.

This was the first time the Philippines was included in a major cruise package. The package included regular stops in Boracay and Manila, Sta. Ana said.

“The Philippines welcomes this growing interest in cruise tourism in various strategic locations in the country,” he said.

Several cruise calls have been recorded since March 2010, including a German cruise ship docking at the Iloilo Port, MV Princess Danae, a Portuguese luxury cruise ship, in Davao Port, and recently, the Royal Carribean’s Legend of the Seas which docked at the Port of Puerto Princesa for the first time as part of the cruise ship’s seven-night “Borneo Explorer Cruise.”

“In coordination and partnership with the Department of Tourism and other government agencies, we identified eight ports as tourism gateways aimed at developing international hubs for cruise liners that include Davao, Bohol, Boracay, Cebu, Metro Manila, Puerto Princesa, Subic, and Zamboanga. These make up the nation’s major nautical cruise arteries,” Sta. Ana said.

“In addition, we have lined up various port development programs for the development of cruise terminals. These include the Ports of Puerto Princesa, Currimao in Ilocos Norte and Catagbacan in Bohol province,” he said.

Govt sweetens LRT 1 deal

The Transportation Department disclosed on Monday the enhanced bidding terms for P60-billion Light Rail Transit Line 1 extension project to Cavite, which now passes the financial risks from the private sector to the government.

Transportation Secretary Joseph Emilio Abaya said the agency would accept “negative bid” from prospective bidders for the project, whose auction in August was declared a failure, after interested companies found the concession agreement risky for investors.

A negative bid means the government would shoulder the risks and most of the cost of the project.
Abaya said the “negative bid” was a part of the amended concession agreement, which would be presented to the National Economic and Development Authority board for approval.

“Allowing a negative bid means that the government will pay the winning proponent with the lowest negative bid. But it does not stop bidders to offer positive bid. So between a negative bid and a positive bid, the government will accept the positive bid since they will pay the government of an X amount,” Abaya told reporters in a news briefing.

He said the mechanism was similar to the one used in the P15-billion Ninoy Aquino International Airport Expressway project where the two proponents submitted upfront payments to the government.
Abaya said aside from allowing a negative bid, the government also agreed to subsidize power rate spikes beyond the reasonable range set by the agency.

“It’s a protection for the concessionaire against unanticipated spike of power rates,” Abaya said.
The government also agreed to bear real property taxes, ensure the integrity of the LRT 1 structure for two years and allow the winning bidder to impose a 5-percent increase in fare upon the completion of the project.

“If anything happens to the existing structure [within two years], the government will shoulder the costs. The winning bidder will operate and maintain the existing structure even they are yet to start the construction of the Cavite extension,” Abaya said.

He said with the improvements in the concession agreement, more groups were expected to join the bidding. “We hope that same players would still be interested and hopefully there would be new players,” he added.
The previously pre-qualified bidders were Light Rail Manila Consortium, a joint venture between the Ayala Group and Metro Pacific Investment Corp.; San Miguel’s SMC Infra Resources Inc.; DMCI Holdings Inc.; and MTD-Samsung Consortium of Malaysia and Korea.
 
The Cavite extension project will extend the existing 20.7-kilometer LRT Line 1 system, which runs from Roosevelt Avenue in Quezon City to Baclaran in ParaƱaque, by an additional 11.7 km southward to Bacoor, Cavite.

Once operational, the new line will increase the number of passengers at LRT-1 from 500,000 to 700,000 passengers a day.

source:  Manila Standard

Saturday, October 19, 2013

Expressway connector project okayed

A P26.5-billion elevated road project that will link the North and South Luzon expressways (NLEx/SLEx) and help decongest Metro Manila has been cleared by the government.

The contract for the Skyway 3 project was approved by President Benigno S. C. Aquino III last Thursday, Sec. Ramon A. Carandang of the Presidential Communications Development and Strategic Planning Office said on Friday.

"We have approved the supplemental toll agreement ... this will pave the way for the construction of the connector road," Mr. Carandang said.

Proposed by San Miguel Corp. and Indonesia’s Citra Group, the 14-kilometer, six-lane, elevated tollway will be built parallel to Epifanio de los Santos Ave. (EDSA), with exits at Gil Puyat Ave., Quirino Ave., Plaza Dilao, Aurora Blvd., E. Rodriguez Ave., Quezon Blvd., Sgt. Rivera, and Balintawak, according to earlier reports.

The Transportation department, in a statement on Friday, said the project would be funded by Citra Central Expressway Corp. "[P]reparatory and advance works will commence before the end of this year," it said, with the project expected to be completed in three years. Round the clock construction is scheduled to begin by the second quarter of next year.

Once built, Skyway 3 is expected to help decongest EDSA and other major roads in the metropolis and will reduce the travel time from Buendia to Balintawak to 15 minutes from the usual two hours, the department claimed.

"[The] DoTC (Department of Transportation and Communications) along with DPWH (Department of Public Works and Highways), MMDA (Metropolitan Manila Development Authority) and local governments of Makati, Manila and Quezon City will surely coordinate and do its best to minimize traffic inconvenience throughout the route of the project," Transportation Secretary Joseph Emilio A. Abaya said in the statement.

"Our president is committed to build infrastructure that will ease the worsening traffic congestion and to enhance economic opportunities," he added. "Other projects such as the construction of the Tarlac to La Union expressway (TPLEx) and the widening and improvement of the Batangas expressway (STAR) are ongoing."

Still to be approved by Mr. Aquino is a similar NLEx-SLEx connector project proposed by Metro Pacific Investments Corp. (MPIC), which involves construction of a 13.4-kilometer, four-lane expressway spanning the Philippine National Railway lines from Caloocan City to Makati City at a cost of P23 billion.

MPIC is the local unit of Hong Kong’s First Pacific Co. Ltd., which partly owns Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld.


source:  Businessworld

Friday, October 18, 2013

School building deals inked

MEGAWIDE CONSTRUCTION Corp. and the BSP & Co.-Vicente T. Lao Construction consortium have been formally awarded contracts for school building projects offered under the government’s public-private partnership (PPP) program.

The deals were signed on Thursday, the PPP Center announced. Both were notified earlier this month that they had won two of the PPP School Infrastructure Program Phase II’s (PSIP-II) five contracts. The three other packages will now be "undertaken through [the] regular procurement process," the PPP Center said.

Four companies had prequalified for the P8.8-billion PSIP-II: Megawide, BSP & Co.-Vicente T. Lao, the D. M. Wenceslao and Associates, Inc.-DATEM consortium and the Bright Future-Riverbanks group. D.M. Wenceslao-DATEM later withdrew while Bright Future-Riverbanks bid for two packages but did not pass a technical evaluation.

Megawide offered P2.255 billion to construct 2,440 classrooms in 982 schools in the Ilocos, Cagayan Valley, Central Luzon and Cordillera regions. BSP & Co.-Vicente T. Lao, meanwhile, bid P1,603 billion for 1,930 classrooms in 750 schools in the Northern Mindanao and Caraga regions.

Given the devastating quake that hit Bohol and Cebu earlier this week, the PPP Center said both contractors would ensure that the classrooms are quake-resistant and not built in disaster-prone areas.

The contracted 4,370 one- and two-storey facilities represent less than half the 10,679 the Education department wants constructed under the PSIP-II. The remaining 6,309 facilities are supposed to be built across 2,925 schools in the MIMAROPA, Bicol, Western Visayas, Central Visayas, Eastern Visayas, Zamboanga Peninsula, Davao and SOCCSKSARGEN regions.


source:  Businessworld

Friday, October 11, 2013

DoTC awards four airport projects

FOUR FIRMS have been awarded four separate airport projects in Visayas and Mindanao, the Department of Transportation and Communications (DoTC) said in a statement.

D.G. Sarmenta Construction bagged the contract for the Semi-Permanent Airport Terminal Project at the Puerto Princesa Airport for P21.50 million. The bid ceiling was P22.68 million. The project involves the installation of various electrical works, including air conditioning units.

V.T. Lao Construction won the contract to develop the Dipolog Airport for P26.70 million. It involves the construction of river protection and runway strip grade correction of the said airport. The original bid ceiling was P34.26 million.

Advance Tech Construction & Trading Corp. was awarded the Zamboanga Airport Development Project, which involves creek de-siltation, de-clogging of box culvert, and construction of a steel strainer, for P5.74 million. The bid ceiling was P6.02 million.

Vesa Engineering and Construction successfully bid for the Catarman Airport Development Project with P7.52 million. The project, whose original bid ceiling was P7.56 million, entails asphalt overlay of the runway and construction of a perimeter fence.

The DoTC awarded the contracts on Sept. 30.

"This will improve passenger convenience by allowing the airports to meet increasing tourist arrivals in the meantime that long-term upgrades are being done," said DoTC Spokesperson Michael Arthur C. Sagcal said in the statement.

"We are aiming for this to be up by summer next year."

The agency saved over P 9 million from these projects, which the government can now use to accelerate spending in order to boost the country’s economy through the Disbursement Allocation Program (DAP), the DoTC said.

Meanwhile, the P1.72-billion Automated Fare Collection System (AFCS) public-private partnership project under DoTC is set to be auctioned off on Nov. 18, now that the DoTC has finalized the concessionaire agreement for the said project.

The project was supposed to be bid out on Aug. 30 but was deferred due to needed tweaks in its concessionaire agreement. It then was rescheduled to mid-October, before getting reset to November.

The AFCS project entails the decommissioning of the magnetic ticketing system of Light Rail Transit Lines 1 and 2 and Metro Rail Transit Line 3. The system will then be replaced with contactless smart card technology.

The project also involves the introduction of a centralized back office that will perform the necessary distribution of revenues. -- L.C.S. Marasigan


source:  Businessworld

Thursday, October 10, 2013

DoTC bids out port, airport, LTO projects

THE DEPARTMENT of Transportation and Communications (DoTC) is seeking bidders for P293.28 million worth of projects for airports, ports and a Land Transportation Office (LTO) outpost, according to a bid bulletin published yesterday.

The DoTC said in the bulletin that 10 projects were up for auction:

• completion of the new passenger terminal building of Catarman Airport in Northern Samar, with an approved budget of P13.81 million;

• widening of the runway and drainage system of San Vicente Airport in Palawan, for P13.07 million;

• construction of the soaking yard with dike embankment for the New Bohol (Panglao) Airport in Palawan, for P27.65 million;

• completion of the asphalt overlay of the runway, taxiways and the runway markings of Roxas Airport in Capiz, for P138.36 million;

• concreting the vehicular parking and impounding areas, the construction of perimeter fence with pedestrian and vehicular gates, and drainage system of the Boac LTO District Office in Marinduque, for P5.52 million;

• construction of a seawall for Villareal Wharf in Samar, for P1.98 million;

• causeway extension for Dimiao Port in Bohol, for P4.99 million;

• wharf development and concrete billboard construction for Tingloy Port in Batangas, for P7.71 million;

• expansion of the back-up area and construction of the seawall with drainage system for Benoni Port in Camiguin, for P33.94 million; and

• causeway construction as well as mooring cleats and stair-landings for Vinzons Port in Camarines Norte, for P48.27 million.

The DoTC will hold a pre-bid conference for the first five projects on Oct. 17 and for the next five the following day, at the DoTC Multi-Purpose Room, Columbia Tower, Ortigas Ave., Mandaluyong City.

The deadlines for submission and receipt of bids are Nov. 4 for the first five projects and Nov. 5 for the latter five. -- LCSM


source:  Businessworld