Arangkada? More like gapang!

No one can accuse the private business sector of just complaining and not offering solutions. Last year, the Joint Foreign Chambers of Commerce under the leadership of John Forbes drafted a comprehensive road map for the Aquino administration that covers everything from how to be more competitive in agri-business, BPO, tourism and creative industries to what infrastructure to focus on. They also had something to say about improving governance, dealing with corruption and improving the administration of justice.

There was this enthusiasm with the P-Noy administration as a kind of new beginning. The long-term foreign residents joined Filipinos in hoping we are back in business after a decade of bickering with a kleptocracy. There was this belief that finally, we can grow twice as fast and catch up with our neighbors.

No one honestly thought the NEDA plan was good enough or something that is easily understood where it matters at the frontlines. Arangkada was therefore, very specific with projects and action plans designed to dramatically improve our country’s competitiveness. The idea was to push our economy into a higher growth rate in the belief that it will enable us to fight poverty more effectively.

The document they presented last year was the result of focus group discussions of private sector movers and foreign experts and businessmen. And unlike such past efforts in producing economic plans, the foreign chambers fully intended to follow through. Thus, yesterday, they called a conference to see if something happened.

There were polite exchange of words between the businessmen and the administration led by P-Noy. But if you went through the details of the scorecard prepared by the joint chambers, it is clear business as usual means nothing much really got done. P-Noy’s economic managers exuded optimism, but we all know we need more than that… we simply have to get going with actual reforms, actual projects so we can benefit from the “sweet spot” DTI Sec. Greg Domingo said we are in.

I had been asking DOTC and DPWH to put out a scorecard of sorts containing information on status of projects and deadlines for completion. The people need an up-to-date view of what’s getting done and what’s being studied to death.

The joint chambers had no intention of waiting for government to provide such a scorecard. The folks behind Arangkada produced their own. It is a very comprehensive scorecard and I want my readers to get an idea of what’s in it by focusing on excerpts from the infrastructure card covering expressways, airports and railroads. I just edited a bit for clarity and space considerations but the essence of the report is there.

ARANGKADA Proposal: Start to build expressways and national roads twice as fast, using PPPs as well as DPWH funds.

STATUS: At end of 2011, only the construction of the 88-­km SCTEX north extension is underway. None of the major projects are under construction. The DPWH has adopted a policy of improving national highways and bridges but was slow to disburse funds in the first half of 2011, as it sought to reform procurement practices to end corruption.

DBM budget documents describe plans to spend increasing amounts (P31.3 billion in 2011 and P38.5 billion in 2012) to improve national roads and bridges.

ARANGKADA Proposal: Major road and rail projects should be bid out competitively and evaluated and awarded transparently.

STATUS: The largest PPP toll road project, the SLEX-NLEX connector is being implemented as an unsolicited project, the Swiss challenge has yet to be published.

The first solicited PPP project, the four kilometer Daang Hari-SLEX link road received two bids and was awarded to the Ayala group in December 2011.

The 28 km CALA (Cavite-Laguna) toll road and the NAIA expressway phase 2 PPP projects, which NEDA targeted for bidding in 2011, have been delayed.

During 2011 no rail PPP projects were bid out, the DOTC was studying how to blend ODA for their construction with PPP solicitations for concessionaires to operate two projects to extend LRT-­1 and LRT-­2. 

LRT-­7 has not commenced construction despite being “ongoing” for a decade.

ARANGKADA Proposal: Build intercity rail and urban light rail, specially on Luzon, twice as fast. Accelerate rail construction on Luzon using PPPs as well as DOTC funds.

STATUS: Operationalized rail transport improvement projects include the upgraded Bicol PNR line and the start of operations of the four-station MRT 1 north extension, both initiated in the previous administration.

Other major rail projects remain in the planning stage except for the suspended controversial PRC-funded NorthRail project. (But NorthRail’s not moving too, Mar has yet to start negotiations with Beijing on converting project to fast rail --- Boo Chanco)

DOTC Sec. de Jesus planned to bid O&M for the Metro Manila light rail system to the private sector, but this was shelved by his successor. Delays have long plagued the efforts of DOTC to implement rail projects.

ARANGKADA Proposal: Prioritize investments in airport terminal, runway, and communication facilities and development of an NCR/Central Luzon Transportation Master Plan.

STATUS: The NCR/Central Luzon Transportation Master Plan has not been published. JICA has made a study regarding the future of NAIA, recommended that DMIA at Clark be developed as the primary gateway. Sec Roxas has spoken about selling NAIA in order to finance the development of Clark and a fast train connection with Makati.

ARANGKADA RECOMMENDATIONS: Keeping and even expanding NAIA should be explored, given its ideal location since it could be one of the best national capital airports in Asia.

Priority should be given to Laguindingan; Mactan runway should be extended; and high speed ferry links to Tagbilaran increased.

The new Laguindingan airport should open in 2012.

Expansion of the Cebu terminal is ongoing.

A new Bohol airport remains a priority rather than expanded ferry service from Cebu, but no decision has been made on its location. Meanwhile, the Tagbilaran terminal should be expanded as it is overcrowded with insufficient seating for passengers. A temporary expansion should be put in place.

Eventually make Clark the primary international gateway, connect with a high-speed rail line. The DOTC appears to be accepting the JICA recommendation to make Clark the primary gateway, but stakeholder consultations have not taken place. Given its distance from Makati, Clark is ideal for a LCC hub (and spoke) market, with some domestic and some spoke services from Asian legacy carriers and flights to the ME popular with OFWs. The rail link to Clark should have affordable fares and be able to handle heavy baggage requirements.

ARANGKADA Proposal: The local Expropriation Court should quickly decide the amount due to NAIA T-3 investors.

STATUS: The Pasay RTC in May 2011 ordered the GPH to pay $176 million. The owners, claiming $841 million ($470 million for construction and $371 million for additional expenses) have appealed to the CA. An appeal by the owners of the 2007 decision favoring the GPH by the International Center for Settlement of Investment Disputes is ongoing.

The Arangkada scorecard sadly confirms our worse fears — this administration like others in the past lack a sense of purpose and a sense of urgency. We are still wasting time on first gear even as our neighbors are now miles away. We are not on Arangkada mode… we are on gapang mode. How absolutely sad!

Naiwan

A reader reacted to the column last Monday.

Let me share with you a copy of the report on the NAIA. It validated what Filipino experts had been telling DOTC – even before Ping de Jesus‘ time. This report was also presented to your good friend Mar Roxas. Apart from the news release of acting on it, there was really no real action or sense of urgency.

The congestion at NAIA was anticipated more than 10 years ago. Three years ago, I was part of a study team in Vietnam that alerted a looming capacity shortage in Saigon airport (Tan Son Nhat) by 2017. You know what. A year after, Vietnam started acquiring the land for a new airport – fully aware that it takes about 10 years to bring an international airport into operation.

Vietnam has been addressing future problems, the Philippines has been engrossed with yesterday’s problems.

Ideal Wife

Gilbert J sent this one.

One day a teacher was talking about marriage in class...

Teacher : What kind of wife do you like Johnny?

Johnny : I want a wife like the moon...

Teacher : Wow !! what a choice...do you want her to be beautiful and calm like the moon?

 Johnny : No, I want her to come at night and disappear in the morning…

Boo Chanco’s e-mail address is [email protected]. He is also on Twitter @boochanco