Another transport mega project

One of the benefits of having a regular business-oriented TV show is having to stay on top of current and relevant business issues in the country at all times. In the course of doing this, we have actually monitored the performance of many government agencies, and one of these is the BCDA (Bases Conversion Development Authority).

BCDA’s primary mandate when it was created was as an economic catalyst.  This agency was in fact created primarily to reconstruct Central Luzon when the deadly Mt. Pinatubo eruption devastated the area and turned into a wasteland, and to rehabilitate Baguio after that big earthquake that flattened the city. It was also mandated to promote infrastructure development and to raise funds for the military, specifically for the upgrading of equipment and to create adequate housing facilities for military personnel. What I didn’t know was that the creation of mass transport systems was also a part of their mandate. Which is why we sought out BCDA’s executive director Arnel Casanova:  why is this agency now steeped in this problem of addressing the country’s shortage in mass transportation?

Mr. Casanova was our esteemed guest in Business & Leisure’s (TV Show) Biz Watch One-on-One portion and he turned out to be not only gracious but fully knowledgeable and accommodating as well. BCDA has gone through its share of changes in leadership, as with most other government agencies in this country, but in the last 20 years, says Mr. Casanova, they have remitted P60 billion to the National Treasury.  In 2013, they exceeded their target by P175 million through sheer good financial housekeeping and by resolving all the problematic accounts that have accrued through the years. Last year, they were able to put up about P6 billion, (with significant contributions to devastated communities), validating their position as one of the major development companies for calamity development.

Now the BCDA is reportedly seriously pursuing a mass transit system that will connect four central business districts. Three of these are the adjacent districts of Makati, Ortigas and the Bonifacio Global City.  Then there is that area going to the airport towards Newport City, and further south, we have the Mall of Asia area and the rest of the reclaimed city.  Yes, Mr. Casanova says, the BCDA is cognizant of the hard fact that there is an urgent need to move people more efficiently now without making our roads any more congested than they are now.  With this, it is easier to create more businesses in the long run because of better logistics. And with very little need for road space, it is ideal for densely-populated areas. Definitely, we should pursue a multi-modal transport system that will seamlessly connect these business districts to each other.

They have in fact considered the monorail system among other technologies as their first option.  The study was funded by the Ministry of Economy, Trade and Industry of Japan, but the results showed that the costs were too steep to undertake. They are now looking at other technologies that may be more affordable not only for our government but in the long run for our people to afford.

This isn’t to say that they have closed the door to this option.  In fact, expensive as it may be, the government is still open to the monorail system but is considering for instance the bus rapid transit system which is more environmentally-friendly, among other modes of transport systems.

Historically, according to the BCDA head, we never had a shortage of foreign aid programs and ODA loans.  With the SCTEX project, for instance, they have had good dealings with the Micro International Corporation of Japan which has merged with JICA (Japan International Cooperation Agency).  He also cited the World Bank and the Asian Development Bank as partners in major projects, along with domestic banks which have helped it through the completion of these projects.

Of course, with a project this big like a monorail system, they need to tap the Pubic- Private Partnership ( PPP) Center, which has also been their partner in projects like Fort Bonifacio Global City and the SCTEX. I understand Cosette Canilao, PPP Center’s executive director is supportive of BCDA’s mass transport initiative. This agency’s PDMF (Project Development and Monitoring Facility) is a revolving pool of funds from the national government and the Australian government under a capacity-building technical assistance project from the Asian Development Bank (ADB).  One of its directions is to develop a pipeline of viable PPP infrastructure projects, and BCDA’s mass transport system project is well within this area. Along with the PPP Center, the NEDA, Department of Finance and the Department of Budget Management approve all PDMF applications.

Anyway, back to the BCDA.  For 2014, they have lined up big projects in this agency. Among them is the Poro Point Airport.  They have engaged the services of a reputable consulting agency accredited by the PPP Center which will be funded through the PDMF. And, they are now well into studies for the creation of the Clark Green City.

The Bases Conversion Development Authority is hopeful that the Clark Green City will finally get its approval in this first quarter.  I agree with the BCDA head that there is a need to develop new cities and urban districts because Metro Manila is already fully congested, and in fact continues to be congested with new development projects coming up, so they have masterplanned Clark to become a new metropolitan area.

For now, they are concentrating on the repair of projects like the damaged portion of the SCTEX for instance. They are also now inter-connecting with T-PLEX, three toll roads that are inter-connected in the Central Luzon expressway going to the Nueva Ecija side.  Hopefully too, they can now go into the full development of the Clark Airport as well as the full utilization of the Subic Sea Port this 2014. This area is a highly-urbanized one and we may well see a new city coming up when the maximum utilization of this sea port is realized.

Mabuhay!!! Be proud to be a Filipino.

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