DAP is for fast moving projects, daw?

Disbursement Acceleration Program or DAP was created two years ago supposedly to finance “new, fast-disbursing and high-impact projects to be funded from unused 2010, 2011 appropriations.” Last week, Ricky Carandang reiterated the reason why they instituted DAP. The Disbursement Acceleration Program (DAP), Ricky explained, is made for projects that require accelerated spending.

That may have been the intention but I doubt if that had been accomplished by at least one of the projects funded by DAP. This is how the LRT/MRT rehab projects were described by a press release published in the Official Gazette:

“Railway Rehabilitation: A total of P1.87 billion will be provided for the rehabilitation of Light Rail Transit (LRT) Lines 1 and 2, including the replacement of worn-out rails, repair and rehabilitation of trains and improvement of train station facilities. For the Metro Rail Transit (MRT), P4.5 billion has also been provided for the purchase of additional train cars.”

I totally agree with the intention to rehabilitate our commuter train systems in a rapid fashion. But to describe these train rehab projects as fast moving that require accelerated spending is twisting reality. P-Noy has simply steadfastly neglected to address a serious problem of technical deficit at DOTC.

What most likely happened is that DOTC got the money and saved it from reverting to the General Fund. They then froze it in an account under LRTA, which in itself seems questionable. The intention is to use the amount after they have selected a provider for the new trains and a contractor to rehabilitate the entire MRT system.

But they have not addressed the legal problems. MRT 3 is still owned by MRTC, a private company, even if 70 per cent of the economic interest is now in the hands of government banks. Technically, government cannot fund capital expenditure or capex for a private corporation.

It is ironic that they used DAP, supposed to be for fast disbursing projects to fund MRT rehab. DOTC has shown no intention of addressing this concern with some urgency. The money ended up frozen anyway. If the intention is to provide economic stimulus as Sec Butch Abad claims, I doubt if frozen funds can do that.

To add to the curiosity of the situation, when Edwin Lacierda was asked by a reporter about this MRT allocation under DAP, I heard him say that if the funds were not quickly used by DOTC for the purpose intended it would revert to the general fund. I doubt that happened.

But indeed, there is urgency in getting the rehabilitation of MRT done. As I have continually warned in this column, it is a tragedy waiting to happen. Those trains, the rails, the signaling system are barely able to carry on in their dilapidated condition. A serious accident could happen anytime that will result in death and serious injuries.

If Sec Abaya wants to have a clear conscience, he will order an independent evaluation of the MRT system right away. I am told that MRTC, the owners of the system, wanted to do just that early this year but were prevented from doing so. I suppose that clears them of any liability as legal owners if tragedy strikes. I heard GSIS also refused to cover the system because the current maintenance group is not accredited with the original manufacturer.

I understand that last Jan. 12, 2013, MRTC wrote Sec Abaya expressing grave concern about the accidents and malfunctions that have plagued the MRT3 system. They suspect that this is mostly due to the inability of the maintenance contractor selected by DOTC to do a proper job.

MRTC offered to undertake an independent technical assessment of the MRT3 system. This assessment was supposed to be done by an expert from MTR Hong Kong. While DOTC agreed to allow the independent assessment, the expert sent by MTR HK (Danny Shum Hing Loong) was not allowed to enter the depot. The expert left the country without being able to make his assessment on the real condition of the system.

What do the guys in control of MRT3 have to hide? Ok, I know what they are trying to hide because it is obvious. But that is unfair to the riders of MRT3 who must be reassured of the safety of the system because they put their lives on the line on it everyday.

Sec Abaya must not be a party to this conspiracy to hide the truth from the public. Sec Abaya has chosen to close his eyes on the MRT3 problems and just focus on a dream project of an EDSA subway. If he knows what is good for him and the people who are his bosses, Sec Abaya will make sure the independent assessment of MRT 3 is done quickly. That may just save lives and limbs.

Car plates

Last Friday, I reported in this column the reason for the delay in the production and issuance of car plates. DOTC failed to obtain MYOA (Multi-Year Obligational Authority) from DBM prior to bidding out the license plate standardization project.

Because of this, DOTC cannot issue a Notice to Proceed to the supposed winning bidder. A re-bidding will be called because the previous one was illegal.

I received an e-mail from a seemingly knowledgeable reader who provided one more reason why a rebidding is necessary. This has to do with an error in the test specification required.

“ASTM (American Society of Test and Materials) D4956 is the Standard Specification for Retroreflective Sheeting for Traffic Control. As per bid docs, reflective sheeting to be used must meet test method ASTM D4956 8.5 for adhesion.

“But test 8.5 no longer exists.

“On page 50 of bid docs it clearly states in section 15 Standards, ‘...such standards shall be the latest issued by the institution concerned.’

“In the latest version of ASTM D4956 which is 11a, the test method is 7.5 and not 8.5. As per required by bid docs, results from independent test facilities are required to prove conformance.

“Since test 8.5 was changed to 7.5 way back in 2007, testing facilities only certify compliance as per test 7.5. Did these firms actually do the tests?

“When this was brought this up to the Technical Working Group (TWG), they said they would amend using a bid bulletin if it was a typo. They didn’t amend. And TWG said it was not a typo and that indeed it had a copy of 8.5.

“All bidders gave sworn statements of conformity to this test 8.5. If they did test, they would know that the active test since 2007 was 7.5. This shows that they probably didn’t do the test even though they were required to do so. This is an act of perjury.

“This was brought to the attention of the Bids and Awards Committee (BAC). Chairman Lotilla after receiving the letter, said it was a mistake on the part of the BAC and excused the compliant bidders when he started the second day of bid opening on May 7.”

I think I wrote something about this some columns back. But it is worth repeating just in case some folks think this problem is forgotten, swept under the rug.

NAIA

Last Friday I reported Sec Abaya’s text message to me that they are currently procuring the consultancy services and the construction management services for the NAIA1 makeover. “We expect to award and issue NTP on or before Oct. 15. The gencon we expect to award Nov. 15 and issue NTP end of November,” Abaya said.

A reader e-mailed his reaction: “So where are the advertisements for bidding these works? They are not shown on the DOTC website? Or will they just appoint someone like they seem to prefer these days?”

Kenneth Cobonpue, who offered his interior design services for free and was initially rejected by then DOTC Sec Mar Roxas, is now working on the project. He told Ces Drilon in the ANC program Pipol that “The concept is done, it was already made. It just needs further refinement.”

Cobonpue told Ces: “I think the task of the government now is how to execute it well. I think a little change at the airport is really a big boost to the country because it really is a symbol of everything wrong that has been happening to our country.”

I am hoping for the best but will believe things will soon get better only when I see them actually doing something. I am concerned that no bidding has been scheduled… so how can Sec Abaya meet the deadlines he told me?

Shut down

I wish we can have a government shutdown like the US that would send home non essential people on the payroll. Imagine sending all our senators and congressmen home.

Boo Chanco’s e-mail address is bchanco@gmail.com. Follow him on Twitter @boochanco