Pimentel questions costly port projects

MANILA, Philippines - Former Senate President Aquilino “Nene” Q. Pimentel Jr. questioned yesterday “high-priced” port renovations undertaken in the last two years by the Philippine Ports Authority (PPA), saying more feeder ports could have been built instead of using the repair projects’ budget.

Pimentel urged the Department of Transportation and Communications (DOTC) to closely monitor the PPA’s utilization of funds so they can be put to better use in decentralizing and making more efficient the sea-based transport system in the country.

He expressed puzzlement why the PPA has given a notice of award for the paving of a marshalling yard in the Port of Iloilo in the amount of P76 million when the same port was subjected to other repairs just last year to the tune of P24 million and P15 million.

Pimentel also put the spotlight on “expensive improvements” undertaken at the Cataingan Port in Masbate (P32.1 million), Mauban Port in Quezon (P31.2 million), Talibon Port in Bohol (P36.8 million) and Catbalogan Port in Western Samar (P35.9 million).

“There are many unserved and underserved areas for which small feeder ro-ro (roll-on, roll-off) ports could have been built using the repair budget allocated for the five ports I have identified,” said Pimentel.

He said he remembered the PPA saying that it can build feeder ports for about P40 million each, and was flabbergasted that already existing ports, which have not yet reached the end of their touted 40-year lifespan, are already being refurbished at costs that could fund the construction of new feeder ports.

He also wondered why the ports are being renovated at costs nearly identical to their construction costs.

Earlier, Pimentel also raised concerns over the P400 million PPA allocation for the rehabilitation of the Macabalan Port in Cagayan de Oro City, the P397 million cost of the Tacloban Port and the P176 million contract for the construction of the Port of San Jose in Occidental Mindoro.

He said that the locally bid, sourced and funded projects, including those of the PPA, should be subjected to the same close scrutiny given by NEDA-ICC to ODA (overseas development assistance) funded projects.

“If the administration is intent on the daang matuwid, then it should look especially into locally funded projects, where corruption can easily take place because of the lack of impartial monitoring [that foreign-funded projects have],” said Pimentel.

He said it is now time for the Philippines to adopt the modular ports being used worldwide since they are easier to adapt to changing transport needs and at much lesser cost.

“Ro-ro [port] technology is constantly evolving, especially in Europe. The French Modular roro system is quite cost-effective compared to the decades-old technology the PPA still uses today,” said Pimentel.

The French modular ro-ro ports are priced at P83 million according to the NEDA grant formula.

Pimentel added that forward planning entails adapting a design that anticipates future needs if only because additional rehabilitation expenses of this magnitude “totally distort the financial viability” of long- term infrastructure projects.

“Later upgrades such as these are not factored into the project’s initial return on investment and become a heavy, additional financial burden,” he said.