PALACE WON'T BUDGE ON CANCELLATION OF LAGUNA LAKE DREDGING
MANILA, NOVEMBER 24, 2010 (STAR) By Aurea Calica - Malacañang would not budge on its decision to cancel the P18.5-billion Laguna de Bay dredging project despite threats from the Belgian company that it would go to an arbitration court and discourage other foreign investors from coming to the Philippines.
Presidential spokesman Edwin Lacierda said yesterday the contract with Baggerwerken Decloedt en Zoon (BDZ), signed during the Arroyo administration, was different from the Aquino administration's Public-Private Partnership (PPP) projects.
Sources said President Aquino has met with the Belgian ambassador to explain why the government could not pursue the project. Quoting the BDZ, reports said a senior official from the Belgian embassy would recommend to the Belgian government and to the European community "to suspend all investments in the Philippines."
Lacierda said contracts executed during the past administration must be distinguished from those entered into by the present administration.
It would now be up to the proper government departments and agencies to formally inform BDZ about the project's cancellation, he added.
Talks are circulating that some groups are pushing for the project even if Aquino had already decided against the project, following a thorough review by his economic managers.
Sources said all the legal and other issues involving the project had been studied to make sure that the government would not have any liability in terminating the project.
Lacierda said his statement on the contract's cancellation was in response to Laguna Lake Development Authority general manager Rodrigo Cabrera's pronouncement that the project was only under review.
"There seems to be some confusion on the part of LLDA as to the decision of the President to cancel it," he said.
Sources said Cabrera received a dressing down from Aquino because of the confusion that his statement created.
Lawyers identified with Executive Secretary Paquito Ochoa Jr. are pushing for the project, including a partner in his law firm, Edward Serapio, sources added.
However, Ochoa's office said the executive secretary had nothing to do with the project.
Reports said BDZ would pursue international arbitration upon receipt of a formal notice of cancellation after the Philippine government issued a statement that the P18.5-billion Laguna Lake Rehabilitation Project has been terminated.
A Belgian official met with an undersecretary of the Department of Foreign Affairs and the BDZ to discuss the contract, after Malacañang announced that the deal had been canceled, reports added.
BDZ consultant Arthur Ponce said they were surprised to learn through the media of the project's cancellation.
In a statement issued through Malacañang yesterday, Cabrera said: "Our marching orders are for the protection, rehabilitation and sustained development of Laguna Lake and we will implement these within the framework envisioned by President Aquino."
He said he was inadvertently misquoted in an earlier press report, and that the LLDA was presently formulating a comprehensive master plan for Laguna de Bay to address all relevant concerns of stakeholders, Cabrera said.
'Phl free to cancel P18-B deal for Laguna de Bay dredging' By Pia Lee-Brago (The Philippine Star) Updated November 24, 2010 12:00 AM Comments (3) View comments
MANILA, Philippines - There was nothing wrong with the government's cancellation of its P18-billion deal with a Belgian firm for the dredging of Laguna de Bay because the contract "is not in full force and effect yet."
An official who declined to be named also said the dredging contract with Bagger-werken Decloedt En Zoon should not be compared with the airport terminal contract with Fraport, which had been voided by the Supreme Court.
"One, it appears to be an unsolicited contract and there are concerns about the technical feasibility of the project. At this stage, the implementing agency has not yet issued a notice to proceed and therefore the contract is not in full force and effect yet. The paperwork required are not complete," the official told The STAR.
The official said the Fraport project was already completed when the SC declared the contract null and void in 2003.
"There was no notice to proceed (with the dredging contract). This is a service contract and what should be looked into is the technical feasibility," the official added.
A legal opinion of the Department of Justice on the dredging contract, according to the official, touches only certain areas.
"It didn't really go into the other aspects of this project and at the very heart of it is the technical feasibility of the project itself. Some people are questioning whether it's really worthwhile spending the money," the official said.
The official said the deal with the Belgian firm is "delicate" because it comes at a time when the government is pushing vigorously for the Public-Private Partnership program.
"Contractors are trying to link it with PPP. In the first place this is not in the PPP. This preceded the current administration, entered into by the previous one and it appears it is not a solicited project," the official said.
----------------------------------------------------------
© Copyright, 2010 by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
----------------------------------------------------------
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE
[Non-text portions of this message have been removed]
Follow us on Twitter: http://twitter.com/phnotweet
This is the PHILIPPINE HEADLINE NEWS ONLINE (PHNO) Mailing List.
To stop receiving our news items, please send a blank e-mail addressed to: phno-unsubscribe@yahoogroups.com
Please visit our homepage at: http://www.newsflash.org/
(c) Copyright 2009. All rights reserved.
-------------------------------------------------------------
