Proposal submitted

Dear Mr. Bondoc,

We would like to clarify details on your Philippine STAR articles “Another ZTE-type scam of DOTC (published January 11, 2010) and “Law bars railway deal this close to elections” (published January 13, 210). Specifically, we refer to the allegations you made pertaining to the National Economic and Development Authority (NEDA) in the following paragraphs:

“China Shanghai (Group) Corp. is to extend the Light Railway Transit-1 by 11.7 kilometers, Baclaran to Bacoor, for an astounding $1.78 billion. As in the ZTE scam, there was no public bidding, only quiet negotiations with DOTC and lobbying at the National Economic and Development Authority. Again, China Export-Import Bank is to provide supposedly “concessional loans,” but actually at light repayment terms.” (“Another ZTE-type scam at DOTC”, Philippine STAR, January 11, 2010), and

“Now comes another sleazy deal so close to the May election . . . Again there was no public bidding, only closed door negotiations at DOTC and lobbying at NEDA. (“Law bars railway deal this close to elections”, Philippine STAR, January 13, 2010)

Please be informed that as far as NEDA is concerned, the Department of Transportation and Communications (DOTC) has submitted the proposal on LRT-1 South Extension Project to the NEDA Secretariat for approval. NEDA-ICC has acknowledged receipt of the proposal and has asked DOTC for clarification on some information contained in the submission. — VICTORIA V. QUIMBO, Director, Development Information Staff, National Economic and Development Authority