NAIA
[PHOTO - National Economic
and Development Authority]
MANILA, OCTOBER 19, 2011 (STANDARD) by
Christine F. Herrera - Slow progress and cost overruns plague major projects
funded by official development assistance
THE delays in at least 15 foreign loan-funded infrastructure projects have
cost the government P7 billion in losses as a result of cost overruns, the
National Economic and Development Authority says in a recent report, a copy of
which was obtained by the Manila Standard.
In the report dated Aug. 22, Neda Director Roderick Planta says in awarding
the contracts, the Public Works Department insisted that the pricing be based on
2002 levels, a move that delayed the procurement of civil works.
As a result, Planta says, the P9.94-billion Urgent Bridges Construction
Project for Rural Development financed by the Japan International Cooperation
Agency was only 91 percent complete, even though the funds had been used up and
the loan was considered closed in September 2011.
The Neda also listed as "critical" the P7.35-billion Presidential Bridge for
Farmers Project, a United Kingdom-assisted project also under the Public Works
Department, that had the "supply and services contract terminated."
The agency also raised a warning over the P4.2-billion French-funded
Presidential Bridge for Farms after "no activity" was noted in the first six
months of the year.
As of June 30, 2011, 15 of the 19 bridges were still on the drawing board.
The delayed civil works was attributed to "unsuitability of the project design
to local sites and delayed design preparation in some sites."
The 15 "critical projects" with Alert Level II status had a total cost of
$1.62 billion (P70.05 billion at P43.55 to the dollar).
The Neda says that as of June 30, 2011, those projects already had incurred a
10-percent cost overrun, or about P7 billion.
Six of the 15 critical projects are being undertaken by the Public Works
Department.
Three more projects, including The President's Bridge, were given "Alert
Level 1 Status" because of potential similar problems of delays being
encountered by the 15 critical projects.
At least 13 more projects were identified as "potential problem projects"
that could be elevated to Alert Level 1 Status if no progress was made by end of
the year.
In all, the 31 infrastructure projects that were experiencing slow progress
and delays, and 30 more that were still on schedule, had a total cost of $8.31
billion or P361.9 billion.
"Around 20 percent or one out of five ODA [overseas development assistance]
projects is on critical level," the Neda report says.
"The 18 'actual problem projects' (15 critical or Alert Level II and three
early warning or Alert Level I) are those that are actually encountering serious
problems, as manifested by these projects breaching thresholds of at least two
indicator categories," Planta says.
The four indicator categories for identifying actual problem projects include
leading indicators on financial, physical, cost overruns and project completion,
he says.
"The 13 potential problem projects are programs and projects that are
considered at risk based on a checklist of project variables and characteristics
that historically result in major implementation problems," Planta says.
"The alert status of loan-assisted projects are brought to the attention of
concerned stakeholders."
FROM MANILA BULLETIN
MAR ROXAS REVEALS PLANS TO SELL NAIA PROPERTY
By KRIS BAYOSOctober 18, 2011, BULLETIN
[PHOTO - MAR ROXAS AT THE MANILA BULLETIN ROUND TABLE]
MANILA, Philippines — Transportation Secretary Manuel "Mar" Roxas II Tuesday
disclosed a government plan to sell Ninoy Aquino International Airport (NAIA)
property to the private sector after transferring international airline
operations to the Diosdado Macapagal International Airport (DMIA) in Clark,
Pampanga.
In a roundtable discussion with Manila Bulletin editors Tuesday, Roxas said
the privatization of NAIA would be similar to what happened to Hong Kong's Kai
Tak Airport when it was replaced by its current gateway in Chek Lap Kok.
Roxas said that selling of Kai Tak Airport to pay for the transfer of
operations to Chek Lap Kok is the scenario that government wants to replicate in
the case of NAIA and DMIA.
"If air traffic in DMIA grows just as expected, we will sell NAIA to pay for
the transfer. But if it becomes very high, we might keep the two," Roxas said.
It was recalled that Roxas proposed the transfer of the country's premiere
airport from NAIA to DMIA, saying NAIA's runway and terminal is already
exceeding its capacity and its physical limitations could not keep up with the
demands of international and domestic air traffic.
But Roxas said the eventual transfer will only be made after the North Rail
line has been reconfigured and constructed into a high-speed train link from
NAIA to DMIA, transporting airline passenger from Manila to Clark in less than
an hour.
The DoTC chief defended the relocation plan, saying that expanding the
440-hectare NAIA will be more expensive and time-consuming than moving the
commercial flights operation to the under-utilized DMIA, which is roughly
covering 2,000 hectares of Clark Freeport Zone.
Roxas said utilizing the existing parallel runways of DMIA for international
and domestic flights is more practical for government than shelling out
taxpayers' money to buy out adjacent properties in Paranaque or Pasay City or
reclaiming coastal areas to expand NAIA's runways and terminals.
Roxas added that general aviation, which involves operation of private and
corporate hangars, and aviation schools, will also be moved to Sangley in Cavite
as part of the long term plan to decongest NAIA.
But in the meantime, Roxas vowed to institute facelift projects for NAIA
Terminal 1, which serves international flights but was adjudged as one of the
worst airports in the world for its poor facilities.
"We are going to fix our front door to make it bearable and presentable for
our tourists and balikbayans. But for government, there is no point transferring
international flights to the new Terminal 3 because their rated capacities are
almost the same and we cannot afford disruptions in operations," he said.
At present, NAIA's runway accommodates 43 scheduled landings or takeoffs in
an hour, which is above its rated capacity of 36 events. NAIA's Terminals 1, 2,
3 and 4 are collectively accommodating 30 million passengers for this year,
which is nearing its rated capacity of 32 million passengers.
Chief News Editor: Sol Jose Vanzi
© Copyright, 2011 by PHILIPPINE HEADLINE NEWS ONLINE
All
rights reserved
PHILIPPINE
HEADLINE NEWS ONLINE [PHNO] WEBSITE
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