DOTC arm fast-tracking P53-B `Telepono sa Barangay' program

The Municipal Telephone Project Office (MTPO) is allegedly fast-tracking negotiations for immediate implementation of the controversial P53-billion "Telepono sa Barangay (TSB)" program despite merely a month left on its life term.

A detailed "white paper" prepared by knowledgeable people from the Department of Transportation and Communications (DOTC) said that MTPO, one of its attached agencies, is now entertaining telecom suppliers and signing contracts reportedly upon the behest of certain foreign lending government institutions which were left unidentified.

"The attempt to find a legal basis to just negotiate outright without any bidding is apparently done through the devise of the funding government. Under normal circumstances, even if it is a tied loan, there should still be a bidding even if only among the suppliers of the said country," a highly placed DOTC source pointed out.

If a bidding is not held, the source said that there should be a certificate from the government telecom authority of the foreign country that the chosen contractor is the only provider of such telecom equipment and system.

Yet, despite the legal provisions and the strong clamor from the private sector to turn over the project to existing carriers, the paper said that MTPO is still bent on pushing through with the contracts which range from P1 billion to P3.5 billion each.

Earlier, the Philippine Electronic and Telecommunications Federation (PETEF) voiced its objections to MTPO's implementation of the `Telepono sa Barangay', citing that it will be more economical if the project is placed in the hands of the private operators.

Thus, the paper said that the government need not spend money at an average cost of a very high $11,000 per line considering that the carriers which already have digital exchanges in place, only have to spend an average of $800 to $1,500 per line.

The source said that letters giving the present carriers a right of first refusal, should be sent first to all enfranchised entities which are willing to implement the project.

The problem actually started during the time of Undersecretary Enrico Velasco who was then MTPO project director.

Velasco had collected about seven memoranda of agreement covering seven phases of the TSB, with foreign suppliers, namely: Lucent Technologies, Siemens, NEC, Ericsson, Fibercom, Alcatel, Krone, Telemobile, and Heesung.

There was no need for the National Economic Development Authority (NEDA) to evaluate and clear the projects since the law creating MTPO exempted the office from going through the regular process.

The agreements, however, were put on hold after President Estrada deactivated MTPO on March 5, 1999.

Five months later, in a surprise move, Malacañang issued another executive order reactivating MTPO and designating DOTC Undersecretary for Transportation Willie Evangelista as project director.

Evangelista, the paper said, is bent on honoring the memoranda signed with foreign suppliers.

Just to reactivate MTPO, P400 million was sourced from the President's contingency fund and yet, by next month, the office ceases to exist unless an amendatory bill is approved extending its life.

"The `Telepono sa Barangay' project is a good one but the less government spends, the better. If this pushes through, the P53-billion project might explode in the papers and hurt the President," the source said.