ZTE had eyed Cyber Education project, sources say

Chinese telecommunications giant ZTE Corp., currently embroiled in the government’s controversial $329-million National Broadband Network (NBN) project, was also planning to participate in the $465-million Cyber Education Project (CEP) of the Department of Education (DepEd), sources privy to the deal said yesterday.

This could explain why President Arroyo also included CEP in her order to suspend the NBN project last week following allegations of overpricing and bribery involving top government officials, including Commission on Elections Chairman Benjamin Abalos, in the broadband deal.

In announcing the suspension of the two big-ticket projects, Mrs. Arroyo referred to political noise as her reason although it was only the NBN that is currently the focus of a joint investigation by three Senate committees, and under deliberation by the Supreme Court following two petitions to stop the ZTE deal.

The CEP was signed by Trade Secretary Peter Favila in behalf of the DepEd and Dr. Kang Ke Jung of Tsinghua Tongfang Nuctech Co. in Boao, China last April as part of the five agreements signed between the two countries that also included the ZTE contract.

The source said the CEP initially would use the Philippines’ Mabuhay satellite in the first two to three years of implementation and after that, the program would use terrestrial or broadband connectivity that would tap ZTE as the provider.

Out of the P26 billion cost of the CEP, P18 billion would be used for connectivity, which potentially would be the amount to be used for the broadband services, the source said. Tsinghua will prepare the teaching and training modules.

It was not clear whether the CEP deal named ZTE as the supplier. The possible broadband overlap of the NBN and CEP became an issue in Cabinet deliberations on the two projects last year.

The source said ZTE would likely put up more broadband stations to service the public schools since the NBN only aims to cover all government offices and agencies.

Education Secretary Jesli Lapus and Favila could not be reached for comment.

A ZTE spokesman denied the allegations that the Chinese firm would participate in the CEP. “That’s the first time I’ve heard of that,” the spokesman said.