CEBU CITY -- The information technology -- business process management (IT-BPM) and manufacturing sectors have continued to drive the Central Visayas region’s growth, creating more jobs and generating dollar earnings, a local economic official said.
Direct employment as of the first half of this year increased 35% to 65,303 in IT economic zones and grew 4% to 120,989 in manufacturing ecozones in the region.
Central Visayas, the fourth largest regional economy in the country which recorded 7.4% growth in gross regional domestic product (GRDP) in the first half, is composed of the provinces of Cebu, Bohol, Negros Oriental and Siquijor.
Dionisio C. Ledres, Jr., assistant regional director of the National Economic and Development Authority, said in his presentation during a recent industry forum that Central Visayas region has proven to be among the attractive destinations for IT-BPM and manufacturing investments.
He noted that Cebu City, capital of Cebu province and the financial, commercial and transport hub of the region, is among the top 10 IT-BPM destinations in the country, next to Metro Manila, based on the Tholons annual list of top global IT-BPM destinations.
Citing Philippine Economic Zone Authority data, Mr. Ledres said the number of workers employed in IT parks and centers in the region has almost doubled to 65,303 as of June this year from 36,550 in 2011. IT-BPM exports have also increased to $608.17 million in 2013 from $398.49 million in 2011.
In manufacturing ecozones, employment has increased to 120,989 as of June from 103,593 in 2011. Exports from the ecozones, however, slowed down to $3.55 billion in 2013 from $3.62 billion in 2011.
Mr. Ledres also credited Tsuneishi Heavy Industries (Cebu), Inc. for its contribution to the regional economy and for making the country one of the biggest shipbuilding economies globally. Tsuneishi builds bulk vessels and employs about 13,000 skilled workers at its shipyard in Balamban town along Cebu’s western seaboard.
“Tsuneishi has built 190 ships since it started, including 20 ships this year. The company plans to make the Balamban facility the ‘mother shipyard’ in its Southeast Asian operations,” Mr. Ledres said. -- Marites S. Villamor
source: Businessworld
Wednesday, December 17, 2014
BatMan 1 gas pipeline route, cost known by early 2015
THE FEASIBILITY study for the proposed Batangas-Manila (BatMan 1) natural gas pipeline may be completed early next year, with a preliminary draft due for presentation this month giving an indication of the route and preliminary cost estimates, an official from the Energy department said.
Undersecretary Zenaida Y. Monsada said in a recent interview that the study funded by the Project Development and Monitoring Facility (PDMF) of the public-private partnership (PPP) Center is nearing completion.
“The draft of the study will be presented to PNOC (Philippine National Oil Co.) this month for exchange of comments. It will be finalized by the first quarter of next year,” Ms. Monsada told BusinessWorld.
The BatMan 1 natural gas project involves the construction of a 105-kilometer transmission pipeline that will transport and supply natural gas to targeted markets located along its route from Batangas, Laguna and Cavite, and eventually to Metro Manila.
This is part of the state-run PNOC’s aim to develop the country’s natural gas industry and reduce its dependence on imported fuels.
Ms. Monsada said the ongoing study will determine the actual cost of the project, the route of the pipeline, as well as a demand analysis that would identify the potential off-takers of natural gas that will pass through the project.
“The study will also detail how PNOC should go about it,” she said.
She said the project can either fall under the government’s PPP program or under the Official Development Assistance (ODA) Act of 1996.
According to the law, ODA is a “loan or a grant administered with the objective of promoting sustainable social and economic development and welfare of the Philippines.”
The law provides that the ODA “must be contracted with governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements or which are members of the United Nations, their agencies and international or multilateral lending institutions.”
Ms. Monsada said the timeline of the project implementation will vary depending on the choice of the PPP or ODA route.
Either way, the Energy department hopes to ground break for the project by 2016.
“We want to start by early 2016. But we have to consider the entire process, which will include detailed engineering and design,” Ms. Monsada said.
“There will also be a lot of permits to secure and paperwork so that will also take time,” she added.
PNOC last April tapped Dutch firm Rebel Group International BV as the transaction advisor for the project.
Energy Undersecretary Donato D. Marcos, for his part, said the department wants this project to be under the government’s flagship PPP program.
“We really want it to be under the PPP because this is a relevant infrastructure project for the natural gas sector,” Mr. Marcos told BusinessWorld separately.
Last May, Energy Secretary Carlos Jericho L Petilla said that upon completion of feasibility study, PNOC would need at least four months to draft the terms of reference for the auction.
The PDMF board in January 2012 approved the inclusion of the BatMan project, along with three other infrastructure projects to receive technical assistance from the PDMF.
The other projects were identified as the Plaridel Bypass Toll Road under the Department of Public Works and Highways; the Manila-Makati-Pasay-Parañaque Mass Transit System under the Department of Transportation and Communications (DoTC); and the Philippine National Railways North and South Lines Development and Extension, also under the DoTC.
According to the PPP Center’s Web site, implementing agencies of projects apply to the PDMF board for technical assistance regarding pre-investment activities, including preparation of project pre-feasibility studies, feasibility studies and financial models, development of PPP options, project structuring, providing transaction advisory services during the bidding process and preparation of contract documents.
The assistance aims to help agencies draft PPP proposals for submission to the National Economic and development Authority (NEDA)-Investment Coordination Committee (ICC), the first step in an approval process that includes concerned local government units, the ICC Technical Board, ICC Cabinet Committee and the NEDA Board.
source: Businessworld
Undersecretary Zenaida Y. Monsada said in a recent interview that the study funded by the Project Development and Monitoring Facility (PDMF) of the public-private partnership (PPP) Center is nearing completion.
“The draft of the study will be presented to PNOC (Philippine National Oil Co.) this month for exchange of comments. It will be finalized by the first quarter of next year,” Ms. Monsada told BusinessWorld.
The BatMan 1 natural gas project involves the construction of a 105-kilometer transmission pipeline that will transport and supply natural gas to targeted markets located along its route from Batangas, Laguna and Cavite, and eventually to Metro Manila.
This is part of the state-run PNOC’s aim to develop the country’s natural gas industry and reduce its dependence on imported fuels.
Ms. Monsada said the ongoing study will determine the actual cost of the project, the route of the pipeline, as well as a demand analysis that would identify the potential off-takers of natural gas that will pass through the project.
“The study will also detail how PNOC should go about it,” she said.
She said the project can either fall under the government’s PPP program or under the Official Development Assistance (ODA) Act of 1996.
According to the law, ODA is a “loan or a grant administered with the objective of promoting sustainable social and economic development and welfare of the Philippines.”
The law provides that the ODA “must be contracted with governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements or which are members of the United Nations, their agencies and international or multilateral lending institutions.”
Ms. Monsada said the timeline of the project implementation will vary depending on the choice of the PPP or ODA route.
Either way, the Energy department hopes to ground break for the project by 2016.
“We want to start by early 2016. But we have to consider the entire process, which will include detailed engineering and design,” Ms. Monsada said.
“There will also be a lot of permits to secure and paperwork so that will also take time,” she added.
PNOC last April tapped Dutch firm Rebel Group International BV as the transaction advisor for the project.
Energy Undersecretary Donato D. Marcos, for his part, said the department wants this project to be under the government’s flagship PPP program.
“We really want it to be under the PPP because this is a relevant infrastructure project for the natural gas sector,” Mr. Marcos told BusinessWorld separately.
Last May, Energy Secretary Carlos Jericho L Petilla said that upon completion of feasibility study, PNOC would need at least four months to draft the terms of reference for the auction.
The PDMF board in January 2012 approved the inclusion of the BatMan project, along with three other infrastructure projects to receive technical assistance from the PDMF.
The other projects were identified as the Plaridel Bypass Toll Road under the Department of Public Works and Highways; the Manila-Makati-Pasay-Parañaque Mass Transit System under the Department of Transportation and Communications (DoTC); and the Philippine National Railways North and South Lines Development and Extension, also under the DoTC.
According to the PPP Center’s Web site, implementing agencies of projects apply to the PDMF board for technical assistance regarding pre-investment activities, including preparation of project pre-feasibility studies, feasibility studies and financial models, development of PPP options, project structuring, providing transaction advisory services during the bidding process and preparation of contract documents.
The assistance aims to help agencies draft PPP proposals for submission to the National Economic and development Authority (NEDA)-Investment Coordination Committee (ICC), the first step in an approval process that includes concerned local government units, the ICC Technical Board, ICC Cabinet Committee and the NEDA Board.
source: Businessworld
Sumitomo, Sobrepeña to tap ally Metro Pacific for MRT-3 upgrade
SOBREPEÑA-led Metro Rail Transit Corp. (MRTC), builder of the Metro Rail Transit System Line 3 (MRT-3), and the line’s former maintenance service provider Sumitomo Corp. could build a joint proposal with Metro Pacific Investments Corp. (MPIC) to rehabilitate and upgrade the country’s most congested railway system.
MRTC Board Chairman Robert John L. Sobrepeña told lawmakers yesterday that his company, in partnership with Japan’s Sumitomo “is willing to partner with MPIC for MRT-3 rehabilitation and upgrade for a more comprehensive and fast-tracked proposal.”
Mr. Sobrepeña was speaking before a Senate Sub-Committee on Public Services conducting a probe into a series of mishaps at the MRT-3 -- from technical glitches to safety lapses to having the train run with its doors open.
Click to enlarge
The committee’s co-chair Senator Grace Poe-Llamanzares also wanted to discuss the results of an audit made by Hong Kong-based railway expert MTR Corp. Limited on MRT-3.
In its report, MTR Corp. gave the railway’s track, elevators and escalators a “poor” grade; while rating its rolling stock and CCTV system as “unsatisfactory.” The report used the following grading system: “good” (system in good operation condition), “satisfactory,” “fair,” “unsatisfactory,” and “poor” (major or extensive defect exists).
“Where we are now is an emergency. On behalf of my consortium and Sumitomo, we’re willing to bend over backwards to ensure safety of passengers, and open to partner with MPIC for the benefit of the riding public,” Mr. Sobrepeña told lawmakers.
MPIC on Monday said it will submit a revised P23.3-billion ($524-million) proposal to rehabilitate and upgrade MRT-3.
MPIC’s fresh offer, which is a scaled-down version of a P25.1-billion ($565-million) proposal submitted in 2011, will include the rehabilitation of existing train cars, 25 additional coaches, a new signaling system, and settlement of the government financial institutions-held equity rental payments, MPIC President Jose Ma. K. Lim told lawmakers in a separate hearing at the House of Representatives on Monday.
On the sidelines of yesterday’s Senate hearing, Mr. Sobrepeña said his company, together with Sumitomo, will submit its formal proposal “within the week.”
The proposal of MRTC-Sumitomo, according to Mr. Sobrepeña’s presentation before the lawmakers, costs P4.38 billion ($98 million) and accounts for “a complete rehabilitation of existing train cars for over a period of 18 months.”
Asked how the alliance with MPIC will work, he replied: “We’ll be in charge of the rehabilitation of the existing cars, while MPIC will be the one adding new ones. Our proposal complements those of MPIC nicely.
Our proposal is the fast-tracked one, while MPIC’s is the more comprehensive proposal.”
“We’ve talked to them (MPIC) a few days ago and they said they’re open to it, although nothing has been finalized yet. We both need to submit our own formal proposals to DoTC (Department of Transportation and Communications) before considering this plan,” Mr. Sobrepeña explained.
That won’t be the first time that the Sobrepeña group will be partnering with the MPIC of businessman Manuel V. Pangilinan.
The two groups are allies, with MPIC having an option to acquire a 48% stake in MRTC after signing cooperation agreements with the various groups that hold rights and interests in the company. MPIC, however, has yet to exercise this option.
NOT O&M
The rehab proposal is separate from the P2.4-billion operations and maintenance (O&M) contract that the government is putting on the auction block on Jan. 20.
Mr. Sobrepeña told lawmakers that MRTC and Sumitomo will not join that bidding. Instead, the MRTC head said a rehabilitation should be warranted to ensure whoever gets the O&M contract will not have much of a headache.
Until the government awards the three-year contract to a new service provider, Autre Porte Technique Global, Inc. will continue maintaining the 16.9-kilometer rail system, along with the shadowing team deployed by the Transportation department.
From 2000 to 2010, the maintenance of the MRT-3 had been contracted out to Sumitomo. That contract was then further extended for two years, Mr. Sobrepeña and Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla both explained during the hearing.
After the maintenance deal with Sumitomo ended, the Transportation department had been bidding out the MRT-3 maintenance on short-term contracts, and so its upkeep has been passed from one service provider to another, including to Philippine Trans Rail Management and Services Corp.
The fresh maintenance contract now being auctioned off is good for only three years as by 2016, the government hopes it would have completed the buyout of the MRT-3 from MRT Holdings II, Inc., which is the majority shareholder of MRTC -- the owner of the railway system’s assets.
MRTC is the private group that was a signatory to the build-lease-transfer agreement for MRT-3.
source: Businessworld
MRTC Board Chairman Robert John L. Sobrepeña told lawmakers yesterday that his company, in partnership with Japan’s Sumitomo “is willing to partner with MPIC for MRT-3 rehabilitation and upgrade for a more comprehensive and fast-tracked proposal.”
Mr. Sobrepeña was speaking before a Senate Sub-Committee on Public Services conducting a probe into a series of mishaps at the MRT-3 -- from technical glitches to safety lapses to having the train run with its doors open.
Click to enlarge
The committee’s co-chair Senator Grace Poe-Llamanzares also wanted to discuss the results of an audit made by Hong Kong-based railway expert MTR Corp. Limited on MRT-3.
In its report, MTR Corp. gave the railway’s track, elevators and escalators a “poor” grade; while rating its rolling stock and CCTV system as “unsatisfactory.” The report used the following grading system: “good” (system in good operation condition), “satisfactory,” “fair,” “unsatisfactory,” and “poor” (major or extensive defect exists).
“Where we are now is an emergency. On behalf of my consortium and Sumitomo, we’re willing to bend over backwards to ensure safety of passengers, and open to partner with MPIC for the benefit of the riding public,” Mr. Sobrepeña told lawmakers.
MPIC on Monday said it will submit a revised P23.3-billion ($524-million) proposal to rehabilitate and upgrade MRT-3.
MPIC’s fresh offer, which is a scaled-down version of a P25.1-billion ($565-million) proposal submitted in 2011, will include the rehabilitation of existing train cars, 25 additional coaches, a new signaling system, and settlement of the government financial institutions-held equity rental payments, MPIC President Jose Ma. K. Lim told lawmakers in a separate hearing at the House of Representatives on Monday.
On the sidelines of yesterday’s Senate hearing, Mr. Sobrepeña said his company, together with Sumitomo, will submit its formal proposal “within the week.”
The proposal of MRTC-Sumitomo, according to Mr. Sobrepeña’s presentation before the lawmakers, costs P4.38 billion ($98 million) and accounts for “a complete rehabilitation of existing train cars for over a period of 18 months.”
Asked how the alliance with MPIC will work, he replied: “We’ll be in charge of the rehabilitation of the existing cars, while MPIC will be the one adding new ones. Our proposal complements those of MPIC nicely.
Our proposal is the fast-tracked one, while MPIC’s is the more comprehensive proposal.”
“We’ve talked to them (MPIC) a few days ago and they said they’re open to it, although nothing has been finalized yet. We both need to submit our own formal proposals to DoTC (Department of Transportation and Communications) before considering this plan,” Mr. Sobrepeña explained.
That won’t be the first time that the Sobrepeña group will be partnering with the MPIC of businessman Manuel V. Pangilinan.
The two groups are allies, with MPIC having an option to acquire a 48% stake in MRTC after signing cooperation agreements with the various groups that hold rights and interests in the company. MPIC, however, has yet to exercise this option.
NOT O&M
The rehab proposal is separate from the P2.4-billion operations and maintenance (O&M) contract that the government is putting on the auction block on Jan. 20.
Mr. Sobrepeña told lawmakers that MRTC and Sumitomo will not join that bidding. Instead, the MRTC head said a rehabilitation should be warranted to ensure whoever gets the O&M contract will not have much of a headache.
Until the government awards the three-year contract to a new service provider, Autre Porte Technique Global, Inc. will continue maintaining the 16.9-kilometer rail system, along with the shadowing team deployed by the Transportation department.
From 2000 to 2010, the maintenance of the MRT-3 had been contracted out to Sumitomo. That contract was then further extended for two years, Mr. Sobrepeña and Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla both explained during the hearing.
After the maintenance deal with Sumitomo ended, the Transportation department had been bidding out the MRT-3 maintenance on short-term contracts, and so its upkeep has been passed from one service provider to another, including to Philippine Trans Rail Management and Services Corp.
The fresh maintenance contract now being auctioned off is good for only three years as by 2016, the government hopes it would have completed the buyout of the MRT-3 from MRT Holdings II, Inc., which is the majority shareholder of MRTC -- the owner of the railway system’s assets.
MRTC is the private group that was a signatory to the build-lease-transfer agreement for MRT-3.
source: Businessworld
Tuesday, December 16, 2014
CALAX, other PPP projects up for approval
THE NEW TERMS for the contract to build and operate the 47.018-kilometer Cavite-Laguna Expressway (CALAX) for P35.42 billion under the government’s public-private partnership (PPP) program -- along with seven other PPP deals -- could be approved this Friday by the National Economic and Development Authority (NEDA)-Investment Coordination Committee-Cabinet Committee (ICC-CabCom), officials said yesterday.
PPP Center Executive Director Cosette V. Canilao told reporters during a media conference of the ASEAN PPP Forum at Sofitel Philippine Plaza in Pasay City that rebidding of CALAX “will have to secure new regulatory approvals as the terms were changed.”
“It will be the NEDA-ICC-CabCom and the Board which will approve the new terms of the rebidding, then we will forward it to the Office of the President,” she explained when asked what approvals are needed to move forward with the new project auction.
This was after Public Works and Highways Secretary Rogelio L. Singson was quoted by a PPP Center statement earlier this month as saying that the new auction will require a minimum bid of P20.1 billion -- the top premium San Miguel Corp.’s Optimal Infrastructure Development, Inc. offered to pay besides project cost in the scuttled first tender -- and that it “will undergo a shorter one-stage bidding process where both technical and financial bids will be opened simultaneously.”
This development comes in the wake of the expiry last Dec. 10 of a 15-day period within which the highest compliant bidder -- Team Orion of Ayala Corp.’s AC Infrastructure Holdings Corp. and Aboitiz Equity Ventures, Inc.’s Aboitiz Land, Inc. -- was allowed to file an appeal against Malacañang’s order for rebidding late last month. Ariel C. Angeles, director of Public-Private Partnership Service of the Public Works and Highways department, confirmed via phone interview on Tuesday: “We didn’t receive any appeal from Team Orion so we moved forward with the rebidding.”
CALAX is a 47-kilometer, eight-interchange tollway that will run between Cavite Expressway’s Kawit, Cavite end and South Luzon Expressway-Mamplasan interchange in Biñan, Laguna.
The first CALAX auction last June ended in controversy after Optimal Infrastructure -- which offered the highest premium -- was disqualified on a technicality involving its bid security.
That left Team Orion -- with a much smaller offered premium of P11.66 billion -- as being deemed the highest compliant bidder. The other two bidders were Metro Pacific Investments Corp.-led MPCALA Holdings, Inc. which offered an P11.33-billion premium and MTD Philippines, Inc. which offered P922 million. Optimal Infrastructure sought Malacañang’s intervention later in June. The Palace ordered DPWH on Nov. 19 to hold a new auction.
Of the four original bidders, only MPCALA and Optimal Infrastructure have renewed their bid bond, which guarantees that bidders have the financial muscle to carry out the project.
The department aims to publish a new invitation to bid this month and set submission and opening of bids in May next year.
OTHER PPP PROJECTS
Other projects up for discussion at the Dec. 19 NEDA-ICC-CabCom meeting are the: P19.33-billion Motor Vehicle Inspection System; P177.22-billion North-South Railway Project (South Line); P374.5-billion Makati-Pasay-Taguig Mass Transit System Loop; Light Rail Transit Line 1 Extension to Dasmariñas Project; Ninoy Aquino International Airport Development Project; the joint venture for the P25.6-billion North Luzon Expressway-South Luzon Expressway Connector Road; and the P1.16-billion Civil Registry System-IT Project (Phase II). -- Chrisee Jalyssa V. Dela Paz
source: Businessworld
PPP Center Executive Director Cosette V. Canilao told reporters during a media conference of the ASEAN PPP Forum at Sofitel Philippine Plaza in Pasay City that rebidding of CALAX “will have to secure new regulatory approvals as the terms were changed.”
“It will be the NEDA-ICC-CabCom and the Board which will approve the new terms of the rebidding, then we will forward it to the Office of the President,” she explained when asked what approvals are needed to move forward with the new project auction.
This was after Public Works and Highways Secretary Rogelio L. Singson was quoted by a PPP Center statement earlier this month as saying that the new auction will require a minimum bid of P20.1 billion -- the top premium San Miguel Corp.’s Optimal Infrastructure Development, Inc. offered to pay besides project cost in the scuttled first tender -- and that it “will undergo a shorter one-stage bidding process where both technical and financial bids will be opened simultaneously.”
This development comes in the wake of the expiry last Dec. 10 of a 15-day period within which the highest compliant bidder -- Team Orion of Ayala Corp.’s AC Infrastructure Holdings Corp. and Aboitiz Equity Ventures, Inc.’s Aboitiz Land, Inc. -- was allowed to file an appeal against Malacañang’s order for rebidding late last month. Ariel C. Angeles, director of Public-Private Partnership Service of the Public Works and Highways department, confirmed via phone interview on Tuesday: “We didn’t receive any appeal from Team Orion so we moved forward with the rebidding.”
CALAX is a 47-kilometer, eight-interchange tollway that will run between Cavite Expressway’s Kawit, Cavite end and South Luzon Expressway-Mamplasan interchange in Biñan, Laguna.
The first CALAX auction last June ended in controversy after Optimal Infrastructure -- which offered the highest premium -- was disqualified on a technicality involving its bid security.
That left Team Orion -- with a much smaller offered premium of P11.66 billion -- as being deemed the highest compliant bidder. The other two bidders were Metro Pacific Investments Corp.-led MPCALA Holdings, Inc. which offered an P11.33-billion premium and MTD Philippines, Inc. which offered P922 million. Optimal Infrastructure sought Malacañang’s intervention later in June. The Palace ordered DPWH on Nov. 19 to hold a new auction.
Of the four original bidders, only MPCALA and Optimal Infrastructure have renewed their bid bond, which guarantees that bidders have the financial muscle to carry out the project.
The department aims to publish a new invitation to bid this month and set submission and opening of bids in May next year.
OTHER PPP PROJECTS
Other projects up for discussion at the Dec. 19 NEDA-ICC-CabCom meeting are the: P19.33-billion Motor Vehicle Inspection System; P177.22-billion North-South Railway Project (South Line); P374.5-billion Makati-Pasay-Taguig Mass Transit System Loop; Light Rail Transit Line 1 Extension to Dasmariñas Project; Ninoy Aquino International Airport Development Project; the joint venture for the P25.6-billion North Luzon Expressway-South Luzon Expressway Connector Road; and the P1.16-billion Civil Registry System-IT Project (Phase II). -- Chrisee Jalyssa V. Dela Paz
source: Businessworld
Investors sought for regional airport deals
THE GOVERNMENT yesterday formally called for bidders for P116.23 billion worth of contracts to develop, operate and maintain (O&M) six regional airports under its public-private partnership (PPP) program, according to a notice published in three newspapers.
Through an invitation to pre-qualify and bid, the Department of Transportation and Communications and Civil Aviation Authority of the Philippines sought interested parties to submit applications to finance, design, build, operate and maintain the facilities for 30 years.
The six projects are: P4.57-billion New Bohol (Panglao) Airport; P5.81-billion Puerto Princesa Airport; P14.62-billion Laguindingan Airport; P20.26-billion Bacolod-Silay International Airport; P30.40-billion Iloilo Airport; and P40.57-billion Davao International Airport.
The bid notice said the projects “aim to improve services and enhance the airside and landside facilities of the key regional airports by entering into concession agreements with the private sector.”
The document noted that Bacolod-Silay, Iloilo, Laguindingan and Puerto Princesa airports have already exceeded their estimated passenger capacity, while the Davao facility “is expected to breach its estimated design capacity in the next few years.” The planned new Bohol airport, on the other hand, will be designed to handle up to 1.7 million passengers a year.
Under the planned concession for Bacolod-Silay, Davao, Iloilo and Laguindingan airports, the winning private sector bidder will take over O&M and promptly start expanding the passenger terminal building, apron, other airside and landside facilities, as well as “any capacity augmentation... that may be required to cater to future demand throughout the contractual term.”
O&M for the new Bohol and the Puerto Princesa airports will be turned over to the winning bidder upon completion of construction. “The proponent shall also be required to develop/expand capacty to cater to future demand throughout the contractual term,” the notice read.
IN BUNDLES
Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla said in an interview at the sidelines of a committee hearing at the House of Representatives in Quezon City yesterday that his department was looking at breaking up the airport tender into two contracts covering three projects each.
“[T]he BAC (bids and awards committee of Transportation department) is considering bundling them...,” Mr. Lotilla said, saying each bundle of three projects would be roughly equivalent to an estimated annual throughput of five million passengers.
“One contract will be the development and O&M of Laguindingan, Bohol and Davao, while a second contract will be for Puerto Princesa, Iloilo and Bacolod,” he explained.
“This is to make it more strategic to investors. Some investors asked before why not bundle it according to throughput of passengers.”
Saying the grouping was still “preliminary”, Mr. Lotilla said “this will depend largely on the inputs of interested groups during the process prior to bidding itself.”
The notice said interested parties may acquire invitation documents consisting of the invitation to pre-qualify and bid, project information memorandum (PIM) and instructions to prospective bidders (ITPB) after paying a non-refundable fee of P1 million. The PIM will be available by Dec. 23 while the ITPB will be made available some time in February next year.
“Only bidders who have purchased the invitation documents... shall be allowed to participate in the pre-qualification and bidding process,” the notice read.
PPP Center Executive Director Cosette V. Canilao had bared as early as December last year “initial” plans to bundle the six airport development and O&M deals for auction, citing the need to make sure the small projects would attract enough investors.
INTEREST
Officials of companies that had bid for other PPP deals had earlier expressed interest in these bundled airport deals.
Manuel Louie B. Ferrer, president of GMR-Megawide Cebu Airport Corp. (GMCAC) that Megawide Construction Corp. and Bangalore-based GMR Infrastructure after bagging the P17.5-billion Mactan-Cebu International Airport PPP project last April, said in an interview on the sidelines of the launch of the new airport’s brand in October that “it makes sense” for the partnership to bid for the other airport deals.
Metro Pacific Investments Corp. (MPIC) Chief Financial Officer David J. Nicol said at the sidelines of a press briefing in Tokyo, Japan last month: “We’ll look into the bundled airports.”
“We’ll wait for the release of the terms of the projects and see if they are strategic to us.”
Ayala Corp. Managing Director John Eric T. Francia told reporters at the sidelines of an event in Makati City early this month: “We’ll look at it. To be honest, we need to study first what the package consists of. Once that is launched by the government, we’ll see.”
The Transportation department now also aims to roll out the P18.99-billion Davao Sasa Port Modernization PPP project within the month.
Eight PPP projects have been awarded so far by the Aquino government since the late-2010 launch of this flagship infrastructure program: the P64.9-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension; the P1.72-billion Automatic Fare Collection System; the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; the P2.01-billion Daang Hari-South Luzon Expressway Link Road; the P15.52-billion Ninoy Aquino International Airport Expressway; the P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); the PSIP’s P3.86-billion second phase; and the P5.69-billion Philippine Orthopedic Center modernization. -- Chrisee Jalyssa V. Dela Paz
The six projects are: P4.57-billion New Bohol (Panglao) Airport; P5.81-billion Puerto Princesa Airport; P14.62-billion Laguindingan Airport; P20.26-billion Bacolod-Silay International Airport; P30.40-billion Iloilo Airport; and P40.57-billion Davao International Airport.
The bid notice said the projects “aim to improve services and enhance the airside and landside facilities of the key regional airports by entering into concession agreements with the private sector.”
The document noted that Bacolod-Silay, Iloilo, Laguindingan and Puerto Princesa airports have already exceeded their estimated passenger capacity, while the Davao facility “is expected to breach its estimated design capacity in the next few years.” The planned new Bohol airport, on the other hand, will be designed to handle up to 1.7 million passengers a year.
Under the planned concession for Bacolod-Silay, Davao, Iloilo and Laguindingan airports, the winning private sector bidder will take over O&M and promptly start expanding the passenger terminal building, apron, other airside and landside facilities, as well as “any capacity augmentation... that may be required to cater to future demand throughout the contractual term.”
O&M for the new Bohol and the Puerto Princesa airports will be turned over to the winning bidder upon completion of construction. “The proponent shall also be required to develop/expand capacty to cater to future demand throughout the contractual term,” the notice read.
IN BUNDLES
Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla said in an interview at the sidelines of a committee hearing at the House of Representatives in Quezon City yesterday that his department was looking at breaking up the airport tender into two contracts covering three projects each.
“[T]he BAC (bids and awards committee of Transportation department) is considering bundling them...,” Mr. Lotilla said, saying each bundle of three projects would be roughly equivalent to an estimated annual throughput of five million passengers.
“One contract will be the development and O&M of Laguindingan, Bohol and Davao, while a second contract will be for Puerto Princesa, Iloilo and Bacolod,” he explained.
“This is to make it more strategic to investors. Some investors asked before why not bundle it according to throughput of passengers.”
Saying the grouping was still “preliminary”, Mr. Lotilla said “this will depend largely on the inputs of interested groups during the process prior to bidding itself.”
The notice said interested parties may acquire invitation documents consisting of the invitation to pre-qualify and bid, project information memorandum (PIM) and instructions to prospective bidders (ITPB) after paying a non-refundable fee of P1 million. The PIM will be available by Dec. 23 while the ITPB will be made available some time in February next year.
“Only bidders who have purchased the invitation documents... shall be allowed to participate in the pre-qualification and bidding process,” the notice read.
PPP Center Executive Director Cosette V. Canilao had bared as early as December last year “initial” plans to bundle the six airport development and O&M deals for auction, citing the need to make sure the small projects would attract enough investors.
INTEREST
Officials of companies that had bid for other PPP deals had earlier expressed interest in these bundled airport deals.
Manuel Louie B. Ferrer, president of GMR-Megawide Cebu Airport Corp. (GMCAC) that Megawide Construction Corp. and Bangalore-based GMR Infrastructure after bagging the P17.5-billion Mactan-Cebu International Airport PPP project last April, said in an interview on the sidelines of the launch of the new airport’s brand in October that “it makes sense” for the partnership to bid for the other airport deals.
Metro Pacific Investments Corp. (MPIC) Chief Financial Officer David J. Nicol said at the sidelines of a press briefing in Tokyo, Japan last month: “We’ll look into the bundled airports.”
“We’ll wait for the release of the terms of the projects and see if they are strategic to us.”
Ayala Corp. Managing Director John Eric T. Francia told reporters at the sidelines of an event in Makati City early this month: “We’ll look at it. To be honest, we need to study first what the package consists of. Once that is launched by the government, we’ll see.”
The Transportation department now also aims to roll out the P18.99-billion Davao Sasa Port Modernization PPP project within the month.
Eight PPP projects have been awarded so far by the Aquino government since the late-2010 launch of this flagship infrastructure program: the P64.9-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension; the P1.72-billion Automatic Fare Collection System; the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; the P2.01-billion Daang Hari-South Luzon Expressway Link Road; the P15.52-billion Ninoy Aquino International Airport Expressway; the P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); the PSIP’s P3.86-billion second phase; and the P5.69-billion Philippine Orthopedic Center modernization. -- Chrisee Jalyssa V. Dela Paz
source: Businessoworld
Tuesday, December 9, 2014
The MRT mess and the mentality behind it
Part Two
TO SOLVE this impasse, there were plans during the final days of the GMA term to buy out the MRTC so as to end the multi-billion-peso lease due to it. The current administration is still mulling on proceeding with this plan.
Bigger problems then ensued in the recent few years. There was this impression in the new DoTC leadership that the MRT deal was grossly unfavorable to the government because of the “high” lease payment.
What they failed to see is that this “high” lease payment was because the low fares couldn’t even support operations. Politically, these low fares were a government subsidy of something like P50 per riding commuter. That’s P50 paid for by the rest of the country -- Mindanaoans, Visayans and other Luzonians -- who do not benefit from the MRT.
With an anti-MRTC mind-set of a poorly executed deal, the DoTC decided to reinvent the wheel; the short-term maintenance contract, ignorant of technical details, was awarded to a new entity. Priced nearly like the Sumitomo contract but allegedly without the supply of imported spare parts for the trains, which was 60% of the cost of the Sumitomo contract. DoTC denies that the terms of reference of its new bid contract for the MRT O&M excludes parts. So why did the interim O&M contractor run low on parts? Ironically, it was the DoTC’s failure to permit Customs to release the spare parts for the MRT that became the cause of the “failure” of Sumitomo to fulfill their contract obligations. We won’t horrify you further by recapping the unprecedented accidents and breakdowns that has continued to bedevil the MRT ever since the DoTC has been reneging and endlessly tinkering with the operations contracts of the railway. Naturally, in the ensuing blame game, the government side demonizes the “greedy, selfish” motives of private sector businessmen. In the meantime, the latest DoTC bidding for the MRT-3’s P2.2-billion new three-year extended O&M contract attracted no bidders.
As we find Robert John Sobrepeña’s explanations rational and revelatory, clearly the muddle that the government has made of the MRT doesn’t necessarily point to Secretary Abaya. He is only as good as the advice that he gets from those underlings tasked to unravel the MRT mess who, by lack of understanding and/or in pursuit of some agenda against any deal that was constructed under the Ramos or GMA administration, aggravated the situation. Meantime, the Palace is still stuck with the impression that the MRT was a poorly negotiated contract during the Ramos years, a lopsided deal that puts the government at a gross disadvantage. A deeper look into the events and changes in policies over the past years will show that the Palace’s pronouncements as to the causes and effects of the MRT mess are in grave error.
In the end, the victims are us, the commuters, who will have to deal with congestion daily. We suffer the mistakes and erroneous perceptions of the government in the problems from the unnecessary conflicts it ignites. But the DoTC can take heart as it is not the only guilty agency.
Look at the missteps of DoE in the power sector. Power output shortage? Propose emergency powers to legislate even the setting of thermostats in air-conditioners. Never mind how one is to police that. In all truth, the solution lies in implementing the EPIRA law in its entirety. Not having done this, the government effectively disincentivized the building of additional power plants. Bowing to popular pressure not to fulfill contracted power price increase further discourages private sector investment in power generation.
Returning to the government agency that causes most of the problems we suffer, we can only mark this descent into administrative hell when DoTC Secretary Ping de Jesus resigned. We’ve mentioned LTFRB’s reckless franchising of buses during GMA’s tenure, aggravated recently by an opinion of an LTFRB officer that private cars should be banned from EDSA during the morning rush hour, apparently unaware that the original intent of the EDSA LRT or MRT was to ban the buses and not vice versa.
In its desperate efforts to sidetrack Stradcom and other current LTO suppliers, LTO ended up with inferior registration sticker tags that fell off in weeks and drivers’ licenses that faded in three months’ time. LTO had an opportunity to improve our license plates with its new Dutch supplier.
But now that the 7-alpha-digit plates are out -- after a year’s delay -- where is the improvement in the plate number size? Instead of elongating it, the new plates use nearly the same dimensions as the old plates, the only difference being the fonts, which are now condensed to fit tighter kerning. They are like the duplicate-replacement plates of the old system even as the new plates use a new color scheme with European zeroes and fours.
This dumbing down in making regulations forces the public to bear the brunt and suffer more in the cause of expediency, supposedly for the greater good. This psyche is an unfortunate result of a worldwide backlash from the security lapses that didn’t anticipate the 9-11 tragedy.
If you recall, the military-industrial complex and Cheney-Rumsfeld indoctrinated, knee-jerked by creating the TSA (Transport Safety Agency), which in turn spawned the mentality where everyone, even the law abiding, are suspects whose civil liberties can be disregarded for the sake of the greater public good. Let the public suffer for so long as government is seen to be doing something, anything.
So now you have the police saying that mall robberies can be prevented by banning the wearing of baseball caps indoors. Local governments are requiring all business owners to have CCTV surveillance cameras. The spate of crimes committed by men tandem-riding motorcycles spawned oppressive regulations on motorcycle riders, like the “plaka” or license plate high-visibility vests, the ban on tandem pillion passengers and the ban on wearing of safety helmets. If only one can ban sloppy thinking.
It’s as if cops, with their nice new pistols and nice new private cars cannot commit crime. Whatever happened to their motto “to serve and protect”?
The problems above, just like the MRT mess, are the result of decision makers making decisions and law makers making laws, without understanding what are the causes that deliver such dire effects that they want to correct. Quick to action without knowing the cause and effect does more harm than good. In the name of justice, do we deserve such degradation of our civil rights?
tfhermoso@gmail.com
Bigger problems then ensued in the recent few years. There was this impression in the new DoTC leadership that the MRT deal was grossly unfavorable to the government because of the “high” lease payment.
What they failed to see is that this “high” lease payment was because the low fares couldn’t even support operations. Politically, these low fares were a government subsidy of something like P50 per riding commuter. That’s P50 paid for by the rest of the country -- Mindanaoans, Visayans and other Luzonians -- who do not benefit from the MRT.
With an anti-MRTC mind-set of a poorly executed deal, the DoTC decided to reinvent the wheel; the short-term maintenance contract, ignorant of technical details, was awarded to a new entity. Priced nearly like the Sumitomo contract but allegedly without the supply of imported spare parts for the trains, which was 60% of the cost of the Sumitomo contract. DoTC denies that the terms of reference of its new bid contract for the MRT O&M excludes parts. So why did the interim O&M contractor run low on parts? Ironically, it was the DoTC’s failure to permit Customs to release the spare parts for the MRT that became the cause of the “failure” of Sumitomo to fulfill their contract obligations. We won’t horrify you further by recapping the unprecedented accidents and breakdowns that has continued to bedevil the MRT ever since the DoTC has been reneging and endlessly tinkering with the operations contracts of the railway. Naturally, in the ensuing blame game, the government side demonizes the “greedy, selfish” motives of private sector businessmen. In the meantime, the latest DoTC bidding for the MRT-3’s P2.2-billion new three-year extended O&M contract attracted no bidders.
As we find Robert John Sobrepeña’s explanations rational and revelatory, clearly the muddle that the government has made of the MRT doesn’t necessarily point to Secretary Abaya. He is only as good as the advice that he gets from those underlings tasked to unravel the MRT mess who, by lack of understanding and/or in pursuit of some agenda against any deal that was constructed under the Ramos or GMA administration, aggravated the situation. Meantime, the Palace is still stuck with the impression that the MRT was a poorly negotiated contract during the Ramos years, a lopsided deal that puts the government at a gross disadvantage. A deeper look into the events and changes in policies over the past years will show that the Palace’s pronouncements as to the causes and effects of the MRT mess are in grave error.
In the end, the victims are us, the commuters, who will have to deal with congestion daily. We suffer the mistakes and erroneous perceptions of the government in the problems from the unnecessary conflicts it ignites. But the DoTC can take heart as it is not the only guilty agency.
Look at the missteps of DoE in the power sector. Power output shortage? Propose emergency powers to legislate even the setting of thermostats in air-conditioners. Never mind how one is to police that. In all truth, the solution lies in implementing the EPIRA law in its entirety. Not having done this, the government effectively disincentivized the building of additional power plants. Bowing to popular pressure not to fulfill contracted power price increase further discourages private sector investment in power generation.
Returning to the government agency that causes most of the problems we suffer, we can only mark this descent into administrative hell when DoTC Secretary Ping de Jesus resigned. We’ve mentioned LTFRB’s reckless franchising of buses during GMA’s tenure, aggravated recently by an opinion of an LTFRB officer that private cars should be banned from EDSA during the morning rush hour, apparently unaware that the original intent of the EDSA LRT or MRT was to ban the buses and not vice versa.
In its desperate efforts to sidetrack Stradcom and other current LTO suppliers, LTO ended up with inferior registration sticker tags that fell off in weeks and drivers’ licenses that faded in three months’ time. LTO had an opportunity to improve our license plates with its new Dutch supplier.
But now that the 7-alpha-digit plates are out -- after a year’s delay -- where is the improvement in the plate number size? Instead of elongating it, the new plates use nearly the same dimensions as the old plates, the only difference being the fonts, which are now condensed to fit tighter kerning. They are like the duplicate-replacement plates of the old system even as the new plates use a new color scheme with European zeroes and fours.
This dumbing down in making regulations forces the public to bear the brunt and suffer more in the cause of expediency, supposedly for the greater good. This psyche is an unfortunate result of a worldwide backlash from the security lapses that didn’t anticipate the 9-11 tragedy.
If you recall, the military-industrial complex and Cheney-Rumsfeld indoctrinated, knee-jerked by creating the TSA (Transport Safety Agency), which in turn spawned the mentality where everyone, even the law abiding, are suspects whose civil liberties can be disregarded for the sake of the greater public good. Let the public suffer for so long as government is seen to be doing something, anything.
So now you have the police saying that mall robberies can be prevented by banning the wearing of baseball caps indoors. Local governments are requiring all business owners to have CCTV surveillance cameras. The spate of crimes committed by men tandem-riding motorcycles spawned oppressive regulations on motorcycle riders, like the “plaka” or license plate high-visibility vests, the ban on tandem pillion passengers and the ban on wearing of safety helmets. If only one can ban sloppy thinking.
It’s as if cops, with their nice new pistols and nice new private cars cannot commit crime. Whatever happened to their motto “to serve and protect”?
The problems above, just like the MRT mess, are the result of decision makers making decisions and law makers making laws, without understanding what are the causes that deliver such dire effects that they want to correct. Quick to action without knowing the cause and effect does more harm than good. In the name of justice, do we deserve such degradation of our civil rights?
tfhermoso@gmail.com
source: Businessworld
Wednesday, December 3, 2014
Corruption image still ‘poor’ but better
THE PHILIPPINES further improved its ranking and score in the latest Corruption Perceptions Index (CPI) of global nonprofit watchdog Transparency International, but its continued “poor” rating reflects a “a general weak or ineffective leadership” in the fight against this problem, according to the report released yesterday.
The country placed 85th out of 175 countries and territories covered by the Corruption Perceptions Index 2014, titled: “Clean growth at risk” -- the report’s 20th edition -- up from 94th out of 177 last year and 105th out of 176 in 2012.
On a scale of zero (highly corrupt) to 100 (very clean), the Philippines scored 38 -- reflecting steady improvement from last year’s 36 and 2012’s 34 -- though still below the 43% global and Asia Pacific average.
“Although the Philippines still belongs to two-thirds of the 175 countries ranked who scored below 50, this is a marked improvement from the 2012 CPI score,” Transparency International-Philippines, local affiliate of Transparency International, said in a separate statement.
Despite such improvement, Transparency International noted that the Philippines’ “poor” score -- together with those of India (38), China (36) and other emerging markets in Asia and the Pacific -- Malaysia (52), Thailand (38) and Indonesia (34) -- “indicate a general weak or ineffective leadership to counter corruption, posing threats for both sustainability of their economies and somewhat fragile democracies.” The Philippines had the same score and place as Burkina Faso, India, Jamaica, Peru, Sri Lanka, Thailand, Trinidad and Tobago and Zambia.
Still, both government and business leaders welcomed the country’s continued improvement in the annual index.
The CPI ranks countries and territories according to how corrupt their governments are perceived to be. It is a composite index that uses corruption-related data from surveys carried out by institutions like the World Bank and the World Economic Forum.
“Focusing on the score rather than the rank, the Philippines showed a significant improvement in the CPI if we compare our score in 2012 and 2014,” Transparency International-Philippines said in its statement.
It quoted Cleo Anne A. Calimbahin, executive director of Transparency International-Philippines, as saying that the civil society group considers “a score of + 4 to represent change in the perceived level of corruption”, adding that the “CPI captures the perception of corruption in the public sector by business people and country experts outside of the Philippines.”
“The international community is looking favorably at the reform initiatives of the country and the Philippine score,” Ms. Calimbahin said.
“While it remains below 50/100, this should encourage our public and private sector leaders to continue to push for good governance and inclusive growth, prosecution and sanctions against the corrupt, and effective delivery of public services.”
In a television interview, she said approving the Freedom of Information bill -- championed by both chambers of Congress and which Malacañang said should be enacted before President Benigno S. C. Aquino III steps down in mid-2016 -- and prosecuting those involved in corruption would help the country further improve its score and ranking.
Denmark topped this year’s roster with a score of 92, followed by New Zealand (91), Finland (89), Sweden (87), Norway and Switzerland both with a score of 86, Singapore (84), the Netherlands (83), Luxembourg (82) and Canada (81) to constitute the top 10. Sharing 174th place at the bottom of this year’s list with a score of 8 each were North Korea and Somalia.
Singapore topped its Southeast Asian peers, followed by Malaysia which ranked 50th, while the Philippines and Thailand outperformed Indonesia (107th), Vietnam (119th), Laos (145th), as well as Cambodia and Myanmar (tied at 156th place).
Transparency International said “poor score is a sign of prevalent bribery, lack of punishment for corruption and public institutions that don’t respond to citizens’ needs”.
Out of the 28 Asia-Pacific economies on the index which account for nearly 61% of the world’s population, “the majority lag behind in their efforts in fighting corruption in the public sector, with 18 scoring less than 40 out of 100.”
The country’s latest showing in the index was welcomed both by government and businessmen.
Communications Secretary Herminio B. Coloma Jr., in a text message said: “We are gratified that through the government’s determined efforts, the country’s transparency profile has improved significantly. Despite this improvement, we will continue and persevere such that our public institutions become exemplars of transparency and public servants.”
The government’s Investor Relations Office (IRO) said in a statement that “this development recognizes the achievements of the Philippines in the area of governance,” adding that the improvement in the country’s ranking “came with the Aquino administration’s sustained reform agenda, which includes transparency in the budget process and efforts to cleanse government agencies perceived to suffer from corruption.”
“The BSP is one with the government in promoting transparency and accountability, taking these guiding principles strictly in the conduct of its regulatory role over the financial sector,” the IRO statement quoted Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. as saying.
While also welcoming the country’s continued improvement, business groups said more needs to be done to eradicate corruption.
Makati Business Club Executive Director Peter Angelo V. Perfecto noted that “the combined efforts of government, private sector and civil society organizations to stop corruption and promote good governance and integrity are being given due recognition by the independent and credible Transparency International.”
“This is testament to the gains and momentum achieved on the ground and this must push us to strive harder and aim higher as indeed, much more needs to be done. Key to our continuing success is an effective justice system that will finally punish those that steal from public coffers,” Mr. Perfecto said via text.
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines in a text message said: “We hope this ranking continues to go up each year.”
“Even more actions to reduce any resurgence of corruption are needed. Enacting proposed amendments to strengthen Ombudsman Act, Sandiganbayan and other judicial reforms are important to this goal,” he added.
Sought for comment, European Chamber of Commerce of the Philippines Vice-President Henry J. Schumacher, said via text: “We are glad that all our efforts in addressing corruption (national government, business, civil society, including the church, and local governments) are recognized.”
“We still have lots of work to do, but moving to 85 is a good step forward.”
Overall, Transparency International Chairman José Ugaz said in a statement that the 2014 CPI shows that “economic growth is undermined and efforts to stop corruption fade when leaders and high-level officials abuse power to appropriate public funds for personal gain.”
“Countries at the bottom need to adopt radical anti-corruption measures in favor of their people. Countries at the top... should make sure they don’t export corrupt practices to underdeveloped countries.”
Click to enlarge
source: Businessworld
The country placed 85th out of 175 countries and territories covered by the Corruption Perceptions Index 2014, titled: “Clean growth at risk” -- the report’s 20th edition -- up from 94th out of 177 last year and 105th out of 176 in 2012.
On a scale of zero (highly corrupt) to 100 (very clean), the Philippines scored 38 -- reflecting steady improvement from last year’s 36 and 2012’s 34 -- though still below the 43% global and Asia Pacific average.
“Although the Philippines still belongs to two-thirds of the 175 countries ranked who scored below 50, this is a marked improvement from the 2012 CPI score,” Transparency International-Philippines, local affiliate of Transparency International, said in a separate statement.
Despite such improvement, Transparency International noted that the Philippines’ “poor” score -- together with those of India (38), China (36) and other emerging markets in Asia and the Pacific -- Malaysia (52), Thailand (38) and Indonesia (34) -- “indicate a general weak or ineffective leadership to counter corruption, posing threats for both sustainability of their economies and somewhat fragile democracies.” The Philippines had the same score and place as Burkina Faso, India, Jamaica, Peru, Sri Lanka, Thailand, Trinidad and Tobago and Zambia.
Still, both government and business leaders welcomed the country’s continued improvement in the annual index.
The CPI ranks countries and territories according to how corrupt their governments are perceived to be. It is a composite index that uses corruption-related data from surveys carried out by institutions like the World Bank and the World Economic Forum.
“Focusing on the score rather than the rank, the Philippines showed a significant improvement in the CPI if we compare our score in 2012 and 2014,” Transparency International-Philippines said in its statement.
It quoted Cleo Anne A. Calimbahin, executive director of Transparency International-Philippines, as saying that the civil society group considers “a score of + 4 to represent change in the perceived level of corruption”, adding that the “CPI captures the perception of corruption in the public sector by business people and country experts outside of the Philippines.”
“The international community is looking favorably at the reform initiatives of the country and the Philippine score,” Ms. Calimbahin said.
“While it remains below 50/100, this should encourage our public and private sector leaders to continue to push for good governance and inclusive growth, prosecution and sanctions against the corrupt, and effective delivery of public services.”
In a television interview, she said approving the Freedom of Information bill -- championed by both chambers of Congress and which Malacañang said should be enacted before President Benigno S. C. Aquino III steps down in mid-2016 -- and prosecuting those involved in corruption would help the country further improve its score and ranking.
Denmark topped this year’s roster with a score of 92, followed by New Zealand (91), Finland (89), Sweden (87), Norway and Switzerland both with a score of 86, Singapore (84), the Netherlands (83), Luxembourg (82) and Canada (81) to constitute the top 10. Sharing 174th place at the bottom of this year’s list with a score of 8 each were North Korea and Somalia.
Singapore topped its Southeast Asian peers, followed by Malaysia which ranked 50th, while the Philippines and Thailand outperformed Indonesia (107th), Vietnam (119th), Laos (145th), as well as Cambodia and Myanmar (tied at 156th place).
Transparency International said “poor score is a sign of prevalent bribery, lack of punishment for corruption and public institutions that don’t respond to citizens’ needs”.
Out of the 28 Asia-Pacific economies on the index which account for nearly 61% of the world’s population, “the majority lag behind in their efforts in fighting corruption in the public sector, with 18 scoring less than 40 out of 100.”
The country’s latest showing in the index was welcomed both by government and businessmen.
Communications Secretary Herminio B. Coloma Jr., in a text message said: “We are gratified that through the government’s determined efforts, the country’s transparency profile has improved significantly. Despite this improvement, we will continue and persevere such that our public institutions become exemplars of transparency and public servants.”
The government’s Investor Relations Office (IRO) said in a statement that “this development recognizes the achievements of the Philippines in the area of governance,” adding that the improvement in the country’s ranking “came with the Aquino administration’s sustained reform agenda, which includes transparency in the budget process and efforts to cleanse government agencies perceived to suffer from corruption.”
“The BSP is one with the government in promoting transparency and accountability, taking these guiding principles strictly in the conduct of its regulatory role over the financial sector,” the IRO statement quoted Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. as saying.
While also welcoming the country’s continued improvement, business groups said more needs to be done to eradicate corruption.
Makati Business Club Executive Director Peter Angelo V. Perfecto noted that “the combined efforts of government, private sector and civil society organizations to stop corruption and promote good governance and integrity are being given due recognition by the independent and credible Transparency International.”
“This is testament to the gains and momentum achieved on the ground and this must push us to strive harder and aim higher as indeed, much more needs to be done. Key to our continuing success is an effective justice system that will finally punish those that steal from public coffers,” Mr. Perfecto said via text.
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines in a text message said: “We hope this ranking continues to go up each year.”
“Even more actions to reduce any resurgence of corruption are needed. Enacting proposed amendments to strengthen Ombudsman Act, Sandiganbayan and other judicial reforms are important to this goal,” he added.
Sought for comment, European Chamber of Commerce of the Philippines Vice-President Henry J. Schumacher, said via text: “We are glad that all our efforts in addressing corruption (national government, business, civil society, including the church, and local governments) are recognized.”
“We still have lots of work to do, but moving to 85 is a good step forward.”
Overall, Transparency International Chairman José Ugaz said in a statement that the 2014 CPI shows that “economic growth is undermined and efforts to stop corruption fade when leaders and high-level officials abuse power to appropriate public funds for personal gain.”
“Countries at the bottom need to adopt radical anti-corruption measures in favor of their people. Countries at the top... should make sure they don’t export corrupt practices to underdeveloped countries.”
Click to enlarge
source: Businessworld
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