RP12-billion ro-ro project anomalous

Early last month, then DOTC Secretary Ping de Jesus sent P-Noy a memorandum recommending the cancellation of the P11.78 billion GMA ro-ro ports project. Three reasons were cited: costly technology; suitability/feasibility and superfluity of investments.

Actually, in April 18, 2011, Inquirer had a story that said pretty much that… DOTC wants to renegotiate or scrap the project after several onerous provisions were found in the contract with the French. “A review by the DOTC found that the Greater Maritime Access (GMA) ports project, approved in 2009, aimed to build as much as 70 modular ports that were neither needed nor could be used in the areas they were to be built.” Only two of those ports would be useful.

 The story continues: “The project review committee validated its earlier findings that the project is more costly compared to the traditional way of building ports practiced by the Philippine Ports Authority (PPA),” the committee report said. Earlier, preliminary findings of the review showed that the ports under the project would cost P143.5 million each, more than double the prices of locally built ports.

The review committee also said “the modular port system, aside from being costly, is not viable, considering that most of the proposed port locations are not in sheltered areas, and some are in the Pacific coastline.” This made modular ports “unsuitable under Philippine sea conditions.”

The committee report said the government should consider the cancellation and let the PPA build its own facilities. But because a down payment has already been made and it involves a foreign government’s aid program, it may also be best to renegotiate.

The not so funny thing is that the day after the Inquirer story was published, the Bulletin carried a story that claims DOTC has cleared the GMA Ro Ro project. According to Bulletin, Usec Ruben Reinoso, the committee report concluded that the cost was not overpriced, adding that the cost is reasonable. Reinoso was reported to have told a congressional committee that the French are also giving an 80-year guarantee. While this is almost double the 30 to 40 year lifespan of traditional ro-roports made by PPA, it sidesteps the point that we may be paying more for quality we don’t need or can afford.

Well, the final signed memo sent to P-Noy did question the cost. “The Committee concluded that the GMA RoRo Port Project utilizes costly technology compared to the traditional way of building ports by the Philippine Ports Authority (PPA).

“Besides, the technology has never been previously used in the Philippines. PPA can competently handle any RoRo ports project at a much lower price using locally available materials suitable for each specific port site and to the kind of sea condition we have in the Philippines. This will give a higher multiplier effect to the local economy.”

The memo to P-Noy also noted that the contract signed by the previous administration stipulated that the RoRo ports should be in sheltered areas, sea conditions with waves not exceeding three meters, otherwise the validity of the warranty will be nullified. Yet most of the sites are in open seas, along the Pacific coast line. So there goes the 80 years warranty.

Worse, several proposed locations for the French RoRo ports are in areas with already existing underutilized facilities where volume of traffic is insignificant. “To add another set of port facilities will result in superfluity in investment.” The whole deal goes to show how careless the previous administration was with our money. Reinoso who possibly shepherded the project in NEDA during Ate Glue’s watch was trying to save an obviously anomalous project that Sec Ping himself said we don’t need.

In fact we ought to question the quality of the review undertaken by NEDA spearheaded by Reinoso during the Ate Glue watch for having failed to point out the serious defects in the plan found by today’s PPA Board. This brazen attempt of Reinoso to misrepresent the Board’s recommendations may be just to cover his ass over a serious professional failure in his previous assignment at NEDA. Presidential Spokesman Edwin Lacierda appropriately called Reinoso’s press utterances “a crude attempt to unilaterally dictate policy.”

While it is true that termination entails penalties and diplomatic problems with France, we also cannot accept the principle that we should just allow a definite anomaly worth almost P12 billion to proceed. The problem must be brought to the attention of the French government. If the French are truly our friends who were only helping us, they have to see the point that we cannot afford these expensive ports nor do we need them.

There is actually a case that we can bring up with the OECD countries on the conduct of their foreign aid programs. It is turning out to be more of an export selling mission than an honest desire to help us develop. Otherwise, how can they explain the obvious willingness to play ball with corrupt rulers like our former President for expensive projects we don’t need?

The French have these useless ports and the British have their bridges to nowhere which even a House of Commons review committee found anomalous too. Vetting of ODA projects must be done by the donor countries, in fact even more vigorously not only because they are using their taxpayers money but as in the case of the ports and the bridges, unnecessarily saddles poor countries like ours with large obligations for projects we cannot afford nor do we need. 

If we present our situation well to the French government they will see why we have a good reason to seek their understanding on this one. We should immediately get the DFA involved and start negotiating because I understand the penalties run into substantial amounts for each day the issue remains unresolved.     

It really boggles my mind why Ping allowed his super usec to run circles all around him and other DOTC officials who are more attuned to P-Noy’s tuwid na landas. Once this resigned Usec returns to NEDA as he had announced, he may just cause similar problems to Dondon Paderanga, who like Ping, is so low key that people like that super usec can manipulate.

I personally don’t know the guy but from these stories, there must be a safe bureaucratic freezer that can hold people like this so that they can’t do more damage.

Balikbayan

I just heard here in Los Angeles that Tourism Secretary Alberto Lim is about to relaunch the Balikbayan program with a rather bongacious and appropriately expensive hoopla in New York, San Francisco, Los Angeles and Las Vegas. If this is true, I am afraid that my worse fears that Bertie Lim is just another pretty face like Ace Durano is turning out to be true.

I would have thought Bertie would let us know what his game plan is before he goes out trying to look busy. Those balikbayans will come year in and year out because of family ties and not because of any expensive campaign of the tourism department. There is also a more efficient way of reaching Pinoy communities in America through TFC and the Filipino organizations.

If we have money to go on road shows, the better place where we can get more bang per buck is China. The Chinese Ambassador told me that the increasingly affluent Chinese middle class is looking for places to go to. Hainan Island, the Chinese tropical paradise in the South China Sea is getting too expensive for them.

We can easily get half a million Chinese tourists to begin with, and building it up to a million or more over the next year if we tried to understand their wants and needs and did something about it. They need moderately priced hotels and they need not have to pass by Manila. The plan of Zest Air to launch a Beijing to Puerto Princesa is the way to go. I heard that Carlos Chan who made it big in China with his Oishi snacks is thinking of building budget hotels attuned to the needs of middle income Chinese tourists. That sounds like a moneymaker to me.

 Bertie must do his homework. We don’t even know if he has a plan to replace the lamented Pilipinas Kay Ganda campaign. The junket to the US being contemplated is ill-timed for our circumstances and not the best use of our scarce resources.

Money

 Here’s a thought for today a reader sent.

All I ask is the chance to prove that money won’t make me happy!

Boo Chanco’s e-mail address is [email protected]. He is also on Twitter @boochanco