'Scrapped European contracts bad for Phl'

MANILA, Philippines - House Senior Deputy Minority Leader and Quezon Rep. Danilo Suarez yesterday warned the Aquino administration’s move to cancel major projects funded by European governments would do more harm than good to the country.

Suarez was reacting to comments from Malacañang that the administration was not biased against European investments in canceling or suspending several major contracts funded by official development assistance (ODA) just to ensure the success of its flagship Public-Private Partnership program.

President Aquino earlier cancelled a multi-billion peso Belgian project to dredge part of the Laguna Lake and suspend the implementation of a French project to build 72 roll-on, roll-off (Ro-Ro) ports all over the country.

Suarez pointed out the Philippines has already spent billions of pesos in litigation costs alone against the German firm Fraport over the Ninoy Aquino International Airport Terminal 3 project.

He said the litigation costs do not yet include compensation for the German firm after the government took over the facility as well as business opportunity losses.

“What’s worrisome here is the backlash and subtle moves and economic decisions made against the Philippines because of the administration’s penchant to cancel projects only because they were forged by the previous administration,” Suarez said.

“All these contracts passed through rigorous study and documentation by both governments and in some instances by multilateral institutions, so you must presume regularity and not impute malice,” he said.

Suarez said he received reports that the Belgian firm is going to sue the Philippines for reneging on the dredging contract while the French firm was also contemplating the same.

“Up to now, they (Malacañang) have not yet come up with evidence that these contracts are tainted. This is really destroying the reputation of our country, that we do not honor contracts,” he said.

Suarez said President Aquino was being fed wrong information on the two projects by interest groups.

“They said there is no need for Ro-Ro ports because no one is using those routes. Of course, how can vessels dock if there are no Ro-Ro ports? In the same way, if you build roads, people will be able to travel and commerce will flourish,” Suarez said.

Suarez stressed all ODA contracts are governed by internationally accepted protocols to discourage corruption.

He said ODA projects are given at “overwhelmingly low interest rates.”

“If the country would be facing international lawsuits, we would be incurring litigation costs and economic losses and we would not be benefiting from these projects,” Suarez said.