DOTr vows higher spending this year

The Transportation Department said it is accelerating spending on infrastructure projects, services and programs this year.

“I am setting a higher internal target for DOTr so as to pressure ourselves to perform better. If the Department of Budget and Management sets a 72-percent target on budget spending, ours will be 80 percent,” Transportation Secretary Arthur Tugade said in a statement.

The transportation chief also clarified observations that the agency only managed to spend 18 percent of its budget in 2017. DOTr has a total budget of P53.3 billion this year.

Tugade said most of the projects had just finished bidding and procurement processes and would start construction and implementation soon. It is only then that actual spending could begin, he said.

Tugade’s statement came after Senate finance committee chairman Loren Legarda highlighted DOTr’s underspending of its budget.

“Government processes take time. There are procedures and submissions and they could get frustrating at times, but these processes are necessary to ensure that there are no abuses. But I assure you that our projects are on track, even ahead of schedule”  Tugade said.

Tugade said the P11.5 billion that the DOTr returned to the National Treasury in December 2016 was a result of underspending by the previous administration.

He said when the new DOTr administration took over in July 2016, a total of P19.2-billion funds remained unobligated. In six months, the agency managed to obligate and download around P7 billion to projects and other attached agencies, a move allowed by the Commission on Audit.

“There simply wasn’t enough time. We were given six months to spend what our predecessor failed to spend and government processes are not cut out for that. Procurement alone can take months and months, and even years,” Tugade said.

The Transportation chief also reacted to claims that the DOTr had not started any infrastructure project this year.

He said among the projects that broke ground since he took over were the Bicol International Airport, LRT-1 Cavite Extension Project and the LRT-2 East Extension Project.

The Communications Navigation Surveillance/Air Traffic Management system was also fast tracked and is due for full implementation by the end of the year. At least eight airports are also currently being equipped with night-landing capabilities. The LRT-MRT Common Station Project is also scheduled for groundbreaking within the month.

The DOTr assured the public that proper accounting and reporting would be made to ensure the appropriate utilization of public funds.

“There’s no need to worry. We will get these projects done. But this time, we will make sure everything will be done properly,” Tugade said.

Singson leaves Light Rail Manila, moves to Meralco

A source privy to the matter says Primitivo Cal is set to replace Singson as the president and chief executive officer of Light Rail Manila

Rogelio Singson is set to step down as president and chief executive officer of Light Rail Manila Corporation (LRMC), the operator of the Light Rail Transit Line 1 (LRT1).

Singson is stepping down by the end of the month to move to the Manila Electric Company (Meralco), the country's largest power distribution utility firm.

The former public works and highways secretary confimed in a text message that he is moving to Meralco, after leading LRMC for about a year.

"Will be moving to another MPIC (Metro Pacific Investments Corporation) assignment soon," Singson told Rappler.

Meralco told the local bourse on Monday, September 25, that it appointed Singson as senior vice president. He will also lead Meralco's power arm, MERALCo PowerGen Corporation (MGen), effective October 1.

"The Company's Board of Directors, in its regular meeting held today, September 25, 2017, approved the appointment of Singson," Meralco said in the disclosure.

Meralco president Oscar Reyes used to lead MGen prior to Singson's appointment.

MGen is engaged in a number of coal power projects, including a coal-fired power plant in Atimonan, Quezon, and a similar facility in Subic Bay, Zambales.

Singson told Rappler he will be engaged in "new business models like solar, renewable power generators, electric vehicles, and electric mass transport system."

Aside from LRMC, Singson also became the president and chief executive officer of Maynilad Water Services Incorporated – another MPIC subsidiary – after its reprivatization from July 1, 2007 to June 30, 2010.

LRMC accomplishments

Under Singson's leadership at LRMC, the LRT1 was certified as meeting international standards in Quality Management Systems (ISO 9001:2015) and Environmental Management Systems (ISO 14001:2015), following a two-year company-wide program to improve the efficiency of the 32-year-old train line.

The LRT1 is the first and only railway system in the Philippines to have achieved the ISO certifications.

Meanwhile, a source privy to the matter said Primitivo Cal is set to replace Singson as the president and chief executive officer of LRMC.

Cal has been the vice chairman of Bellwether Advisory Incorporated since 2010. He has also been serving as the senior consultant of Transport & Traffic Planners Incorporated since 2009.

From 2004 to 2007, Cal served as the dean of the University of the Philippines School of Urban and Regional Planning.

He was also transportation undersecretary from 1993 to 1998.

Govt to finish 37 flagship projects by 2022–DOF

The Department of Finance (DOF) said around half of the 75 flagship projects that the government plans to roll out will be completed by the time President Duterte steps down from office in 2022.

According to Finance Secretary Carlos G. Dominguez III, about 37 projects under the “Build, Build, Build” (BBB) program will be completed by the year 2022.

“Obviously, not all [will be completed], like the subway. It can’t be finished by 2022,” Dominguez said in a forum held recently.

“But the rest will be ongoing, because they are not projects that you can do immediately,” he added.

Dominguez said he expects the expansion of the Clark International Airport, the Clark-Manila railway and the Mindanao railway to be among the flagship projects that would be completed in five years.

“No. 1 is the Clark airport that will be finished. A good portion of the Clark to Manila railway will be finished, and the third one will probably be a good portion of the Mindanao railway,” he said. The Mindanao railway project—spanning from Tagum, Davao and Digos cities—requires a budget of P31.544 billion, while the Clark International Airport Expansion (Phase 1) costs P12.55 billion. The Philippine National Railways’s (PNR) North 1 project, which is a 38-kilometer mass-transportation railway that will connect City of Malolos, Bulacan with the National Capital Region (NCR), costs P105.31 billion.

As for the P227-billion Mega Manila Subway project, Dominguez said it would take time for boring machines to dig a tunnel underground.  The DOF chief also assured that the rehabilitation of MRT-3 is ongoing despite perceptions that it is moving at a snail’s pace.

“I assure you the MRT-3 project is moving. As people know,  when you do a lot of projects, it takes a bit of time for everything to fall in place and get going,” he said.

Earlier, the DOF said the Investment Coordination Committee-Cabinet Committee is set to recommend to the National Economic and Development Authority board the further streamlining of the approval process for big-ticket projects funded by official development assistance loans to help fast-track the pursuit of flagship infrastructure projects.

Approval of the new “3-in-one” streamlined process by the Neda board will reduce the time to assess the financing leg of projects, according to Dominguez.

Truckers hail government’s move to fast-track the NLEX Harbor Link’s R10 section

Stakeholders in the trucking industry laud the government for its commitment to speed up the construction of the 2.6-kilometer Radial Road 10 section of the NLEX Harbor Link Segment 10 from C3 Road in Caloocan City to R10 in Navotas City.

The NLEX Corporation and the Department of Public Works and Highways (DPWH) recently held a groundbreaking ceremony to mark the start of construction for the R10 section, which is the continuation of the 5.7-kilometer Segment 10, an elevated expressway traversing MacArthur Highway in Valenzuela City, Governor Pascual Avenue in Malabon City and C3 Road/5th Avenue in Caloocan City.

Confederation of Truckers Association of the Philippines (CTAP) chairman Rupert Bayocot expressed full support for the project and cited it as a welcome development that will certainly make a positive impact on trucking companies and their clients. The NLEX Harbor Link’s R10 section is seen to advance transport logistics and facilitate efficient delivery of goods with the direct and quick access between NLEX and Manila Port.

“We’re glad this project is becoming a reality. Extending NLEX to R10 will be a big help to our business. The direct routes between provinces in Central and North Luzon and the CAMANAVA area will make transport of goods easier and faster,” said Mario Yap, president of CTAP, president of Manila North Harbor Truckers Association, and owner of 88 Logistics Co.

Also backing the project, Manuel Dennis Carlos, president of Phil. Hattori Construction and Development Corp. noted that given the well-paved roads of NLEX, the Harbor Link will enable their drivers to meet the cut-off time for delivering the products to clients and further ensure that these products arrive in good condition.

“It will improve our turnaround time for deliveries not only within Metro Manila but also in the northern provinces,” said Carlos, adding that “trucks can just use the expressway to go in and out of the port area, decongesting major roads such as EDSA and C5.”

“Aside from allowing reduced travel time, infrastructure developments like this will aid us in expanding our market reach and provide quality service to our clients,” he said.

According to NLEX Corporation President and CEO Rodrigo Franco, the NLEX Harbor Link Segment 10 is envisioned to alleviate traffic congestion and help truckers and private motorists gain significant savings in vehicle operating costs.

“Travel time is cut by half as the elevated roadway will allow an average speed of 80kph and will offer better road pavement and efficient traffic management,” Franco pointed out, highlighting that “once the Harbor Link is completed, travel time from Manila Port to NLEX and back will be just 10 minutes.”

The R10 Section of the NLEX Harbor Link Segment 10 is the one of the latest additions to the Duterte administration’s “Build Build Build” infrastructure program after the Toll Regulatory Board (TRB) issued the Notice to Proceed with the implementation of the project last July 19. 

DOTr CHIEF SUPPORTS CHAVEZ’S LEGAL TUSSLE VS. BURI

Clark City, Pampanga--- Department of Transportation (DOTr) Secretary Arthur Tugade today said he supports the withholding of payment to MRT3 maintenance provider, Korean firm Busan Universal Rails Inc. (BURI).

Asked for his response to graft charges filed by BURI against Undersecretary Cesar Chavez for the withholding of payment, Secretary Tugade said he trusts how Chavez handles the rail sector of the department, and that all decisions of the latter were properly consulted with him.

"The decision to withhold payment to BURI is not a decision of Undersecretary Chavez alone. It is the decision of the Department as a whole. I support the actions of Undersecretary Chavez in handling the issues confronting the rail sector of DOTr. His actions were in accordance with my instructions," Tugade said.

Tugade likewise mentioned that if he had it his way, he should be included in the case since the decision to withhold BURI's payment was made with his approval and consent.

"Undersecretary Chavez always consults his plans and actions with me. His decisions were made with my consent, approval and confirmation. So, I should also be included in the graft case filed against him,” Tugade said.

"Besides, all his actions are in accordance with the contract, equity, decency and law. All these are aboveboard and have gone through rigorous review and due process,” he added.

The transportation chief noted that the withholding of payment to BURI is only taking into account “the good of the country and the welfare of the riding public.”

BURI officials recently filed a graft case against Chavez before the Ombudsman after the DOTr undersecretary withheld the payment for the Logical Vehicle Unit (LVU) for the MRT Line 3 worth PHP4 million.

The LVU is part of the automatic train protection or the onboard signaling system.

Chavez said he decided to temporarily hold payment of the LVU as he waits for BURI to furnish him with the Certificate of Origin and Factory Inspection Report attached to the LVU billing.

BURI has acquired the LVU from Diamond Pearl, owned by the family of Marlo dela Cruz, while the manufacturer of MRT3’s original signaling system came from Bombadier, Chavez added.

He said this is a requirement of Commission of Audit (COA) to make sure that the spare parts for the coaches are not taken from other train coaches.

"Pag kumpleto ang mga dokumento na requirement ng COA, binabayaran natin. Pag hindi, hindi rin natin binabayaran. Bakit kailangang masinop sa pagsusuri ng billing? Para matiyak na original ang spare parts at hindi rin galing sa “cannibalized” o kinuha lang na piesa sa ibang bagon. Ito ay para sa kaligtasan ng mga mananakay,” Chavez said.

Regarding his actions to withhold the payment to BURI, Chavez maintained he is merely ensuring that government funds are spent judiciously on projects and acquisitions.

"My decision to withhold payment is precisely to protect public funds. How can I be charged with graft when I am only protecting public funds and the people's welfare?,” he said.

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