68 INFRASTRUCTURE DOTC to address project backlogs by 2019 The Transportation department said it plans to catch up on transport project implementation by 2019. But this will require much better efforts at preventing delays caused by complaints on the bidding process for projects as what has happened recently in a number of major projects. The department has had no major infrastructure projects implemented in the past 3 years except NAIA 1 and 3 rehabilitation, but even these were delayed. he Department of Transportation and Communications (DOTC) expects the Philippines to suffer from a Ttransportation gap for the next 5-10 years as a number of key projects of the Transport department under the PPP program have been delayed due to complaints from losing or disqualifi ed private sector parties. Transport Secretary Joseph Emilio Abaya, however, said "We envision erasing the backlog in transportation infrastructure over the next 5 to 10 years, in such a way that the infrastructure we build will meet the country’s needs for the 10 to 20 years that follow." Secretary Abaya added that “fairness, openness, and transparency” will be observed in bidding and procurement, in contrast to the previous administration. So that has required a thorough review of projects approved, delaying the awarding of 2 have been awarded. These are the P1.72 billion Automated projects. What he did not mention was that expertise and relevant Fare Collection System to a consortium of the Ayala and Metro experience has been missing at senior levels in the DOTC so Pacifi c groups; and the P17.5 billion Mactan-Cebu International that Terms of Reference (TOR) and even Request for Proposals Airport Project to the GMR-Megawide consortium. Even these (RFP) can be challenged. Out of the 57 projects (worth P530 were delayed prior to awarding as disqualifi ed or losing bidders billion) under the government's public-private partnership (PPP) raised issues in the bidding process. These were resolved in favor program, 28 are under the DOTC. However out of the 28, only of the winners and were eventually awarded, but it all took time. Some key projects of the Transport department under the PPP program as well as smaller ones have suff ered delays due to complaints from interested private sector parties. Philippine ANALYST July 2014 INFRASTRUCTURE 696 Although the DOTC says it expects to catch up with The National Economic and Development Authority (NEDA) the transportation backlog, there is no guarantee that delays said the PPP initiative would require investment of up to P740 billion in the awarding and implementation of future projects will through 2016 to boost the economy and the country’s investment rate. now be avoided. History is not encouraging in this regard. Nonetheless, the department is expected to award the P64.9 billon LRT Line 1 Cavite Extension and operations and NAIA T3 fi nally starts full operation maintenance (O&M) Project to another joint venture between the Ayala and Metro Pacifi c groups, and is bidding out the It took almost 2 decades to fi nally complete DOTC’s new P2.5 billion Integrated Terminal System (ITS) Southwest international airport terminal in Manila. Project and the P4 billion ITS South and North Project. Other PPP projects under DOTC include: After 17 years the Ninoy Aquino International Airport (NAIA) 1. the O&M and extension of the Light Rail Transit Line 2; Terminal 3 is fi nally fully operational, having completed all 2. the O&M contract of the Laguindingan airport; the necessary repairs and upgrades to international standards on July 31. DOTC Secretary Jun Abaya said, “Our gateway 3. the O&M of the New Bohol (Panglao) Airport; airport will now be able to welcome 3.5 million more passengers 4. the O&M of the Puerto Princesa Airport; with modern facilities every year, and Terminal 1 will now be 5. the O&M of the Davao Airport; considerably decongested to improve passenger convenience.” 6. the O&M of the Bacolod Airport; The project was originally awarded to the consortium of German fi rm Fraport and the Philippine International 7. the O&M of the Iloilo Airport; Airport Terminal Co. in 1997 and was supposed to be 8. the Davao Sasa Port improvement; completed in 2002. But the contract was nullifi ed in 2002 9. the Motor Vehicle Inspection Project; over allegations of irregularities in the bidding process 10. the Mass Transit System Loop; and the scheduled completion of the project was moved to 11. the North-South Commuter Rail, which would start from 2008. By 2008, it was assessed to be only 58% operational. Malolos in Bulacan to Calamba in Laguna; Former DOTC Secretary Mar Roxas initiated talks with Takenaka Corp. of Japan to complete its facilities despite 12. the LRT1 Extension to Dasmarinas Project; the ongoing cases. This effort was continued by DOTC 13. the Manila Bay –Pasig River-Laguna Lake Ferry System Secretary Abaya when he assumed offi ce in October 2012. The Project; negotiation was fi nalized in July 2013 and a new $40-million 14. the C5 Transport Development Project; contract was signed in August 2013. The DOTC said in a 15. the Clark International Airport Project; statement, “Over the past 1-year period, the Japanese fi rm has undertaken completion works for systems such as fl ight 16. the Manila East-Mass Transport System Project; information displays, computer terminals, gate coordination, 17. the Central Spine RORO; landing bridges, and fi re protection systems…Certain systems 18. the R10 Link Mass Transit System; which are non-critical to full airline operations, such as the 19. the O&M of NAIA; building maintenance system, will be completed within the year.” Five major airlines are transferring fl ight operations to NAIA 20. the Road Transport IT Infrastructure Project Phase 2; Terminal 3. These include: 21. the Ferry Passenger Terminal Buildings Development; Delta Airlines (July 31), 22. the New Cebu Container Port and Redevelopment of KLM Royal Dutch Airlines (Aug. 4), Existing Cebu Baseport Emirates (Aug. 15), Since the launching of its PPP Program in 2010, the Aquino administration has awarded the following projects: Singapore Airlines (Sept. 1), and 1. P2.01 billion Daang Hari-SLEX Link Road; Cathay Pacifi c (2nd week of Sept.). 2. P15.52 billion NAIA Expressway; The DOTC noted that the transfer of the 5 airlines will reduce Terminal 1’s annual passenger throughput from the 3. P16.42 billion PPP for School Infrastructure Phase 1; current 8 million annual passengers to its designed capacity of 4. P8.80 billion PPP for School Infrastructure Phase 2; 4.5 million. This also means that lesser number of travelers will 5. P5.69 billion Modernization of Philippine Orthopedic be affected by the ongoing rehabilitation works at Terminal 1. Center; 6. P1.72 billion Automatic Fare Collection System (DOTC); and 7. P17.5 billion Mactan-Cebu International Airport Passenger Terminal Building (DOTC). Philippine ANALYST July 2014 70 INFRASTRUCTURE With the operation of NAIA T3, Terminal 1’s annual passenger throughput will be brought down from the current 8Mn annual passengers to its designed capacity of 4.5Mn. Flood control projects funded by DAP to 2 of 3 projects under the rehabilitation works on the same continue - DPWH tail dike with a budget of P139 million; dredging work on the Orani River in Bataan worth P50 The Department of Public Works and Highways (DPWH) million; and said most of the projects under its fl ood control master plan dredging work on the Del Carmen-Balimbing Creek San for Mega Manila will continue to be implemented despite Fernando City, Pampanga, worth P30 million. the cancellation of the Disbursement Acceleration Program In Southern Tagalog, the P780-million Laguna lake (DAP) that fi nanced some of these projects. fl ood control and river protection convergence program is currently being implemented by the DPWH and the Laguna According to the DPWH, 70 projects from some 100 Lake Development Authority. The 2 projects under the government fl ood control projects funded by about P4.96 program – the construction of river control structures at the billion from the Disbursement Acceleration Program (DAP) Sta. Maria-Mabitac and the Sta. Cruz-San Pedro-Biñan rivers have been completed. These projects, which started in late – are almost complete. While 2 of 13 units of amphibious 2012, are part of the DPWH’s fl ood control master plan for dredging equipment purchased by the agency for P136.5 Metro Manila and areas in Central Luzon and Southern Tagalog. million have already been delivered. There are 2 other units Of the completed projects, 56 are for Metro Manila which include: awaiting release from the Bureau of Customs. The remaining 9 6 projects under the Upper Marikina River Improvement units are expected to be delivered by the end of August 2014. Program worth P222.5 million; DPWH Secretary Rogelio Singson clarifi ed that since the 4 projects under the East Mangahan Floodway Program DAP-funded projects were either already completed or in worth P190 million; progress, these would not be dropped following a qualifi er in the Supreme Court ruling declaring the unconstitutionality of 2 projects under the Mangahan Floodway Dredging Program DAP that projects “already covered by contracts and funded” worth P100 million; should continue. However undisclosed, the projects under the Marikina River dredging project worth P50 million; DAP that have not yet started will have to be put on hold until 5 projects out of 6 worth P113 million to include restoration of DPWH secures funding from another government budgetary damaged slope protection along Marikina River, rehabilitation source. President Aquino is requesting a supplemental budget of Tullahan River, repair of damaged slope protection along to implement critical projects supposed to be funded by DAP.