World Bank options

As more “excerpts” from an alleged World Bank report blacklisting three Filipino contractors are leaked to media, more and more Filipinos are demanding that World Bank officials do some explaining. After all, the country’s reputation and future is at stake here.

The WB may want to debunk a growing impression in the business community that its so-called investigations do not adhere to the principles of due process and that some faulty investigative methods may have made its probers highly vulnerable to “unverified information”.

It may also be good for the WB to step on the brakes on what some quarters in the business sector are beginning to suspect is an orchestrated effort to use the controversy to stop the flow of financing into the country and channel them elsewhere.

WB officials in the country may have to address the worries created by the admission of its investigators that they have never meet nor seen the face of their alleged informant who supposedly linked several political personalities to the controversy.

That admission was part of a news story last Saturday which partly detailed the allegations of their “informant” which, it appears, had supplied WB investigators with “information” only through e-mail.

The question being raised by some businessmen is why would the WB investigators put together a “report” that is based significantly on “information” from mysterious sources — a Japanese contractor who failed to bag a public works contract from the Philippine government and anonymous characters whom the investigators themselves admit they do not know nor have they met? How reliable could such “information” be?

Maybe, it should tell its investigators to look for so-called “impartial” sources — those who have no direct financial interest in WB projects. In our country, there are no “losers” in elections or project bidding. Only “cheated” candidates and project bidders.

The WB may have to realize that accusations by losing bidders that the bidding for the project they lost had been rigged is a dime a dozen here. We have begun to look at them with skeptical eyes.

We also suggest the WB tell its mysterious sources to do what the representative of Japanese contractor Suzuka did – appear before the Senate.

Trix Lim, whose Japanese client was supposed to have told the WB about having to bribe local officials in order to win contracts, told a different story. He debunked claims that Suzuka ever met with First Gentlemen Mike Arroyo and the late Senator Robert Barbers when Suzuka was in the Philippines.

Lim also said he was never interviewed by the media, and that he is completely in the dark as to what the basis of the reports are quoting him and his client about the alleged need to bribe local officials.

The WB has placed the Philippines’ international reputation in jeopardy as a result of this “report”. It must protect its own reputation by showing it has a solid case against this country.

Not the best motives

Many suspect that greed and envy are motivating the black propaganda being waged against the modernization of the Manila North Harbor and the implementation of a project that would transform the port into a world-class facility.

The partners that took the risk of investing their own money for the 25-year development project are now being attacked reportedly by a shadowy figure with strong political connections for no other reason than to stop the development of North Harbor, the largest port that handles domestic cargo and passengers, and preserve his fiefdom.

Sadly, the propaganda campaign is painting a distorted picture of the agreement between  Harbour Center-Metro Pacific Investments Corp. and the Philippine Ports Authority (PPA).

The charge is that the bidding process for the 25-year Manila North Harbor Modernization Project has been rigged to favor the joint venture, with the terms of reference (TOR) and contract of the project designed for the benefit of the project proponents and the provisions of the agreement completely disadvantageous to government.

That the bidding process was rigged sounds ridiculous.  It was only after the PPA declared a failure of bid that the joint venture submitted a letter of intent and showed to all and sundry that it has the financial, technical and corporate capability to develop and manage North Harbor under the build-operate-transfer (BOT) scheme.

The partners opposed the declaration of the failure of bidding by PPA and the Manila Regional Trial Court (RTC) ruled in their favor. PPA eventually had to negotiate with the partners and a compromise agreement was entered into as attested to by the Office of the Government Corporate Counsel (OGCC).

Contrary to the claims of the accusers, the time frame for Phase 1 of the project is three years, along with the next phase, for a total of six years. There is no grace period at all and the JV cannot even raise tariffs for three years and even after if the provisions of the TOR are not met.

The partners are not responsible for the relocation of the informal settlers, and it is clear that the task is reposed in the PPA.

Government is not spending a single centavo for the development project but will be guaranteed P6.8 billion in fees for 25 years. PPA will retain the right to collect usage, wharfage anchorage and other fees.

Moreover, PPA will be reimbursed P15 million as consultant’s success fee within 10 days from the signing of the contract. It will also be reimbursed P113 million for past service fees.

All the improvements in North Harbor will revert to the PPA after the 25-year period.

There is a schedule of investments for a period of six years, and this is a commitment by the parties. A total of P10 billion will be spent for the entire facility. The P6.8 billion fee for government is separate from this investment.

All that the accusers have mustered against the joint venture are based on a deliberate misreading of the compromise agreement and the offer made by the bidder.

When the pre-bid conference was held at the PPA office last Feb. 5, representatives of various interest groups were present, including those from shipping, cargo handling and labor. No one screamed about bid rigging, and certainly, no one conceived of another conspiracy to defraud government.

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