WB okays $232-M loan for phase 2 of RP road project

The World Bank has approved a $232-million loan for the improvement of roads and their management by the Department of Public Works and Highways (DPWH).

The loan has a 25-year repayment period with interest rates of 25 basis points over the London inter-bank offered rates (Libor).

However, the new funding remains clouded with unanswered questions as the issue of corruption affecting the previous program, known as National Roads Improvement and Management Project I (NRIMP I) remains unresolved.

Newly-installed World Bank Philippine country director Bert Hofman said the corruption and overpricing case was investigated by the Department of Institutional Integrity (INT).

 “The INT findings have been forwarded to the Philippine Ombudsman which is now conducting its own investigation. A separate evaluation and supervision officer has also received a copy, which unfortunately is confidential,” Hofman said in a press briefing yesterday.

The deferred NRIMP I had contracts worth around $33 million, representing about 10 percent of the total project cost. The World Bank rejected the contracts in three successive rounds of bidding due to strong signs of collusion and excessive pricing.

Hofman and other Philippine government officials agreed that those found guilty of corruption will be banned from future biddings on Philippine projects.

Budget Secretary Rolando Andaya said the Department of Budget and Management will blacklist those found guilty.

Meanwhile, Hofman said the Philippines has presented several projects for funding with the World Bank.

These include projects for the LRT project (south), irrigation support systems, national roads, and a community cash transfer. An existing proposal that is for heal;th and education.

The World Bank has allocated $1.7 billion funding for the Philippines covering a two-year period.

 “We are non-sector bias, leaving all up to the government to make the requests for specific sectors,” Hofman added.

Meanwhile, the joint private and government watchdog Bantay Lansangan (BL) said it will be involved in all processes to ensure transparency.

“We will be looking for patterns of corruption or overpricing in government projects,” Lazatin added. He is also the executive director of Transparency and Accountability Network (TAN), which has been strongly advocating transparency and anti-corruption measures.

BL is composed of 30 private, civil society, academe, non-government organizations (NGOs), and government. – With Iris Gonzales