Estrada resumes selling Concord

CLARK FIELD, Pampanga -- The Constitutional Correction for Development (Concord) is the only way the government can come up with $48 billion needed to upgrade telecommunications, power generation and road networks that would be at par with the country's progressive Asian neighbors.

This was the belief expressed by President Estrada over the weekend in this former US air base.

"But because of constitutional restrictions that limit foreign investments to only 40 percent, these projects cannot be realized at all," the President told a forum attended by prominent families and young leaders at the Holiday Inn hotel here Saturday.

Mr. Estrada dismissed reports that he had already shelved his Concord, saying he will continue to espouse the lifting of investment restrictions.

He noted that telephone density in the Philippines is currently 10 phones per 100 persons as against the Asian average of 21.2 phones per 100 persons.

"At this rate, total investment needed to bridge the gap between the actual and desired telephone density is $20 billion. Assuming that foreign investors are willing to invest 40 percent, or the constitutional limit, we would still have to raise the 60 percent," the President said.

He said the 60 percent, which is required by the Charter to be in Filipino hands, may be difficult, if not impossible, to raise.

Mr. Estrada likewise noted that the country's 0.12 kilowatts per capita power generating capacity is "far lower" than those of Korea, Malaysia, Taiwan, Thailand and Singapore.

"In these countries, power generating capacity is correlated with the rate of growth and the level of prosperity," the President pointed out.

He noted that for the period 1999 to 2008, the country would need P357.8 billion ($8.9 billion) for power generation and P78.9 billion ($1.9 billion) more for transmission. In addition, P59 billion ($1.4 billion) would be needed for the electrification of all barangays.

"Total power investments needed is more than $12 billion," the President said.

For the toll road network, Mr. Estrada said the country would need P642 billion ($16 billion) to reach the desired 2,369 kilometers.

"And we need much more to expand and modernize our shipping, airline industry and land transport systems," he said.

During the forum dubbed "Convergence in the Millennium," the President vowed to pursue Concord and economic reforms to the end, even at the risk of losing his popularity.

He challenged participants to take the risk of change rather than fear it.

Mr. Estrada likewise criticized the elite, clergy and the left for forming "an unusual coalition against changes in the Charter."

He said this was evident when Church leaders and the elite joined forces with leftist groups in anti-Charter change rallies last year.

The President said Concord will help his government accomplish what previous administrations failed to do, that is "to uplift the lives of the many poor Filipinos through greater foreign fund and investments that can come into the country without restrictions.

"These cannot be provided by rallies, they can only be realized if the country can raise the funds," he said.