Contractors hit alleged gov't bias vs unsolicited infra proposals | ABS-C... http://www.abs-cbnnews.com/business/01/25/11/contractors-hit-alleged-...

Search

Home Nation Business Entertainment Lifestyle Sports Global Filipino ABS-CBN.com Sign up Login

HOT ISSUES Impeaching the Ombudsman -- EDSA-1 25th Anniversary -- Vizconde Massacre Case -- Maguindanao… FOREX P 43.42 = $ 1.00

LATEST VIDEO

Tsunami alert lifted Consecutive quake Flights to and from Pinoys in Japan
in the Philippines aftershocks in Japan Narita, Japan share experiences
recorded cancelled after strong quake

LATEST MOST READ

PAL to stop unprofitable

flights to Riyadh in April
Benguet Corp trims debt Home › Business ›
PNOC-EC eyes higher
stake in Malampaya
project
Contractors hit alleged gov't bias vs unsolicited
Semiconductor sector
infra proposals
attracts $2.3-B By Mary Ann LL. Reyes, The Philippine Star
investments in 2010 Posted at 01/26/2011 7:03 AM | Updated as of 01/27/2011 12:38 AM
PSE profits double in
2010 as listings, trading
increase
LATEST VIDEO
Oil price hike looms
anew Tsunami alert lifted in the
Money supply grows Philippines
9.6% in Jan Consecutive quake aftershocks in
GMA misses P3-B profit Japan recorded
target for 2010 Flights to and from Narita, Japan
cancelled
January bank lending at
21-month high Pinoys in Japan share
experiences after strong quake
Ayala Corp. 2010 profits
grow 37% to P11-B
JOBSDB

MOST DISCUSSED

Filing of 2010 annual info

returns optional, says Position:
BIR
BIR's AIR to burden
Location:
taxpayers: expert
'Cut VAT to roll back
prices' Category:
Philippines least
preferred by Japanese
Search Clear
firms
Sandiganbayan junks
plunder case vs Browse Jobs by Category:
Chingkoe couple
Accounting, Admin & HR, Banking / Finance,
Beauty Care / Health, Building & Construction,
LINKS Design, Education, Engineering, Hospitality / F &
B, Information Technology (I.T.), Insurance,
Youth Management, Manufacturing, Marketing / Public
World Relations, Media & Advertising, Medical Services,
ANC Merchandising & Purchasing, Professional
Research Services, Sales, CS & Business Devpt, Sciences,
Public Service Lab, R&D, Telecomm, Transportation & Logistics,
Exam Results

1 of 3 3/12/2011 2:10 PM
Contractors hit alleged gov't bias vs unsolicited infra proposals | ABS-C... http://www.abs-cbnnews.com/business/01/25/11/contractors-hit-alleged-...

Daily Gospel
MANILA, Philippines - The National Constructors Association of the Philippines (NACAP) has Others
Lotto Results
expressed concern over the seeming bias being shown by key government agencies and
Feedback
officials against unsolicited proposals in the development of infrastructure projects.

The group, in a letter to President Aquino, a copy of which was furnished The STAR, took
exception to statements made by Finance Secretary Cesar Purisima, Socioeconomic Planning
Secretary Cayetano Paderanga and Public Works and Highways Secretary Rogelio Singson
favoring solicited as against unsolicited proposals, especially in the implementation of the
Public-Private Partnership (PPP) program, the cornerstone of the Aquino administration’s
economic strategy.

“The bias is particularly disturbing for private sector players who are more willing to invest in
projects they themselves have originated,” NACAP said.

It, however, reminded government that the build-operate-transfer (BOT) law and the NEDA joint
venture guidelines allow a particular form of private initiative to be exercised through unsolicited
proposals, and that even with the advent of the PPP, the two main modes – government coming
up with the idea for the project and undertaking a competitive bidding for it; or the private sector
promotes the project via an unsolicited proposal – are still in effect.

The group cited Purisima saying that “there will be no midnight deal; there will be no backroom
deal… everything will be transparent… and that’s why the focus will be on solicited projects
rather than unsolicited projects.”

Paderanga has also said that with the BOT Center having been transferred to NEDA and being
renamed the Public-Private Partnership (PPP) Center, “we would really prefer to do solicited
proposals and subjected to public bidding under transparent rules and regulations.”

Meanwhile, Singson said they are completing the feasibility studies on several road sections
within a 200-kilometer radius of Metro Manila since they will be going through a solicited route,
in terms of solicited mode for PPP projects.

NACAP president Willy Castor pointed out that these statements seemed like an expression of a
concrete government policy handed down by the President or that they were merely expressing
a common personal bias against unsolicited proposals.

The group warned that if is indeed the stated policy of the present administration to “focus” on
solicited proposals in order to prevent “midnight deals,” then it places proponents of unsolicited
proposals automatically under suspicion, virtually requiring private sector originators to present
evidence of good motives in addition to proving the merits of the project.

“This clearly violates the spirit, if not the letter of the BOT Law… What makes these
pronouncements especially unfortunate is that they are based on the erroneous assumption that
corruption is the result of some inherent flaw in the unsolicited proposal mode of developing
infrastructure projects, and that by simply taking away that avenue, corruption will be
prevented,” it said.

It added that one does not need a Cabinet appointment to realize that corruption occurs even in
government procurement contracts where the project is awarded strictly through competitive
bidding. “Thus, it would be wrong to attribute the existence of midnight deals on the partially
negotiated nature of unsolicited contracts.”

NACAP also pointed out that the concern about the supposed lack of transparency in
negotiations for solicited proposals is more apparent than real, noting that the implementing
rules of the BOT Law and the joint venture guidelines provide ample opportunity for the
contracting agency on the government side to scrutinize the risks of an unsolicited proposal and
allows it to back out of the negotiations in case the proponent fails to satisfy the government
that the risks are within the latter’s thresholds.

“The fact that unsolicited proposals can drown out priority projects for solicited BOTs is not the
private sector’s fault. It merely shows that government often finds it difficult to get its act
together. That the private sector is faster at developing projects should come as no surprise
and should not be a justification for condemning these projects… Government’s thrust should
not be focused on killing competition but on improving its own products," it added.

Other Headlines
P200-B government support for PPP sufficient – Malacañang
Philippines may get $5-M grant for PPPs
Ghosts of Philippines' infrastructure past haunt PPP scheme
Philippines dangles PPP promises
MPIC, San Miguel, Ayala Corp keen on govt’s PPP listing
San Miguel, MVP et al to join PPP projects

Printer-friendly version | Send to friend | Login or register to post comments

2 of 3 3/12/2011 2:10 PM
Contractors hit alleged gov't bias vs unsolicited infra proposals | ABS-C... http://www.abs-cbnnews.com/business/01/25/11/contractors-hit-alleged-...

Copyright © 2011 ABS-CBN Interactive All rights reserved Home Nation Business Entertainment Lifestyle Sports Global Filipino ABS-CBN.com
Terms and Conditions | Privacy Policy Metro Tech Biz Youth World
Media Partners | Newsbreak | Business Mirror | Business World Regions Moneysense Gadgets & Tech
Halalan 2010 Classified Odd

Insights In-Depth ANC Current Affairs Programs Services

TV Patrol Advisories
Bandila Research
Public Service
Exam Results
Daily Gospel
Feedback

3 of 3 3/12/2011 2:10 PM