'Phl can rely on more ODA by honoring contracts of foreign-funded infra projects'

MANILA, Philippines - President Aquino can secure more official development assistance (ODA) from developed nations for the country in honoring the contract of major foreign-funded infrastructure projects, a senior administration lawmaker said yesterday.

Cagayan Rep Juan “Jack” Enrile noted Aquino’s move to cancel or put on hold at least three projects - funded by the governments of Belgium, France and China - worth about $2 billion on the suspicion that they may be tainted with graft.

He stressed the Philippines badly needs ODA since the government is always in a deficit and thus does not have any funds of major infrastructure projects that would actually promote growth.

He said the spadework for such projects take years of study and involves many agencies from the Philippines and the concerned ODA source country as well as international intermediaries or financial institutions.

“So it takes years before we gain access to ODA funds. I think it will send the wrong signal (to the international community). Just because the administration has different priorities, it does not mean the projects are not needed or not viable,” Enrile said.

Aquino canceled the P18.7-billion ($430-million) Belgian project to dredge Laguna Lake; ordered a review of the P12-billion ($276-million) French project to build 72 steel roll on-roll off ports around the archipelago; and sought a renegotiation of a rail project linking Manila to the Clark airport complex in the north, financed by a loan from China.

He said the contracts must be honored for the sake of the country “regardless of who the original proponents were.”

“You cannot just act based on a premise that maybe somebody has already done something wrong. You have to look at the impact of that particular project in light of the national interest and as an elected official, he must ensure its success, because their impact is nationwide,” he said.

He said more confidence from ODA source countries would mean more funds for major projects.

He pointed out the government is always in deficit and would have to rely for foreign sources for capital outlay.

“I believe that the President as a show of goodwill must prove to everybody both here and abroad that he is serious about development and development does not take into consideration your political affiliations or your political aspirations, and I firmly believe if the President were to continue these projects, then it would send the right signal to all concerned,” Enrile said.

Earlier, local officials, including Albay Gov. Joey Salceda, wrote to Aquino urging him to push through with the French RoRo ports project after reviewing the provisions of the contract.

Salceda said in his region alone, 15 RoRo ports are urgently needed as validated by studies, including that of the Asian Development Bank.

The Philippine Chamber of Commerce and Industry (PCCI) and the Employers Confederation of the Philippines (ECOP) also made similar appeals to the President.

The business groups said some of the country’s top companies have reported drastic reductions in transportation and storage costs while increasing cargo and passenger traffic in the country due to the roll-on, roll-off system.

The European Chamber of Commerce also warned against cancellation of the contracts.