No more Noynoying

by Ducky Paredes, Malaya, 30 May 2012

‘Key government agencies such as the NEDA, DOF, DOTC and various LGUs are moving and private sector players impatient for raising the bar for the standards in Philippine public utilities are sitting up and taking notice.’

AS we await the judgment of our Impeachment Court, this letter from a Pinoy Immigrant to the Land of Oz came in: “Here in NSW, Marcus Einfeld a justice of the Federal Court of Australia and of the Supreme Courts of New South Wales, was sentenced to 3 years in prison for trying to cover up a traffic speeding violation he committed while driving his car. The Australian justice system may not be perfect, but if Australia with its convict past can achieve that kind of impartiality, so can the Philippines! Always enjoy reading your articles. Keep them coming!” -- Charlie Moraza

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No one’s Noynoying. In fact, ending his second year in office, President Benigno Simeon Aquino’s government is showing signs of newfound urgency and efficiency. Key government agencies such as the NEDA, DOF, DOTC and various LGUs are moving and private sector players impatient for raising the bar for the standards in Philippine public utilities are sitting up and taking notice.

The Marubeni-DMCI consortium’s announced that it had signed an engineering, procurement, construction contract with Universal LRT for the Metro Rail System (MRT5) and Intermodal Transportation Terminal of the MRT-7 Project.

MRT-7 is a 22-kilometer train line with 14 stations from San Francisco del Monte in Bulacan to North Avenue and Epifanio de los Santos (EDSA in Quezon City). MRT-7 ill connect to the existing MRT-3 train line and the Light Rail Transit (LRT) line 1 through a common station on North Avenue.

Universal LRT is a railway firm managed and controlled by San Miguel Corporation,

Another announcement came from the Ayala Corporation and Metro Pacific Investments Corporation (MPIC), which is in Tollways, Power Distribution, Hospitals and Water Utilities. They announced that their partnership has been awarded the extension of the LRT 1 line from where it now ends at Baclaran to Cavite as well as the MRT-3 upgrade and rehabilitation,

The LRT-120.7 kilometer railway in Metro Manila will get an additional 11.7 kilometers by 2015, during the last year of the Noynoy presidency,

This new line will increase the LRT service to the riding public from its present 500,000 to 700,000 daily. It will also provide faster and more convenient travel for residents south of Manila in Cavite, Las Piñas and Parañaque.

The LRT, built during the Marcos years, will be improved at a cost of about P30 billion for the additional tracks, new stations and other facilities. Another P30 billon mostly for the additional coaches will be borne by the government through funds from the Official Development Assistance or ODA, which has lower interest rates than funds available through private financing.

This government is doing the right thing. We clearly need to maximize whatever we have in the way of transport infrastructures. How else can we boost other components of the economy such as tourism, agriculture, industry, jobs, and so on if we’re constantly stuck in traffic and hamstrung by aging and inefficient transport systems?

Many more private sector players, including foreign investors, are surely as interested as San Miguel MPIC and Ayala to participate in infrastructure projects. Many, however, are hampered by red tape and other blockages. This is one reason our Asian neighbors are far ahead of us in getting their private sector to participate in public sector projects.

Partnerships such as that between Ayala and MPIC are rare between competitors. (Ayala and MPIC compete in telecommunications, water and power). Both, however, clearly cooperate out of a mutual desire to invest in capex in key transportation infrastructure so sorely needed by this country.

DOTC Secretary Mar Roxas fully supports the Ayala-MPIC alliance, explaining that the government welcomes companies with huge capitalization, who have a good track record of delivering large infrastructure projects, and who clearly have access to the most advanced technology, manpower, management and the skill needed to successfully deliver projects.

Of course, a government must always be cautious and methodical in weeding out the chaff from the grain among interested investors. Isn’t it a relief that top firms are working with government on its projects and not the charlatans and carpetbaggers who used to capture most government contracts?

Hopefully, we are forever free from the “flippers’” those who bid low on a contract only to sell it to some other group, Stuff like these only delays implementation. Unfortunately, this was common practice in the previous administration.

What government has to watch his time around is that it could get too careful, so much so that delays in the decision-making process could discourage interested investors, many of whom are right now raring to go.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.