Government scraps ‘Telepono sa Barangay’ project, save for first 3 phases

Government is proceeding with the first three phases of the highly ambitious Telepono sa Barangay (TSB) program, but the rest of the program amounting to P65 billion involving 12 contracts will no longer be implemented.

Transportation and Communication Secretary Pantaleon Alvarez said these three phases – TSB 1 and 2 approved by President Ramos and TSB 1A approved by former President Estrada – are covered by contracts that are valid and are still in effect.

TSB 1 amounting to P1.54 billion, will install 3,470 digital cardphones and payphones including a central digital station in 347 barangays covering eight provinces, namely Zamboanga del Norte, Zamboanga del Sur, Quezon, Lanao del Norte, Negros Oriental, Sulu, Basilan, and Tawi-Tawi. It is partly financed by a loan from the Canadian Export Development Cooperation with SR Telecom as the contractor.

TSB 1A has a project cost of P3.974 billion partly funded by the Canadian agency and involves the installation of 7,900 telephones in 2,229 barangays in seven provinces – Zamboanga del Norte and Sur, Quezon, Lanao del Norte, Sulo, Basilan, and Tawi-Tawi. SR Telecom was also chosen as contractor.

Meanwhile, the P1.678-billion TSB 2 which is partly financed under the French protocol with Lucent (Pohn) as the contractor calls for the putting up of 2,613 phones in 745 barangays in the seven provinces of Lanao del Sur, Mt. Province, Ifugao, Kalinga, Apayao, Abra, and Cagayan.

According to DOTC Undersecretary for Communications Agustin Bengzon, Phase I has already been completed. As far as Phase 2 is concerned, he said that the equipment has arrived but has not yet been installed.

Criticisms have been raised about the project, with some detractors saying that it is overpriced and has been overtaken by cheaper technology. Some say DOTC bureaucrats are quietly continuing the mothballed program quietly to benefit their favored suppliers.

For his part, Alvarez emphasized that Telepono sa Barangay will no longer be implemented except for the first three phases. He said the 12 other TSB contracts covering the rest of the country although signed by the previous DOTC secretary were not implemented because contracts worth P50 million and above require the President’s approval and compliance with other requirements.