Seems like a nice guy, but can he deliver?

DOTC Secretary Joseph Abaya was saying the right things during the forum of the Economic Journalists Association of the Philippines (EJAP) last week. There appears to be hope that he wouldn’t be as studious and indecisive as his predecessor, Mar Roxas. He promised to fast track implementation of his department’s long delayed projects.

He even defined fast track: “What does fast-track mean? Faster than previous. From my end, I think I can hound our under secretaries not to waste time in between biddings and meetings. We have to inch these projects forward. We have enough studies floating. There is no changing of the rules,” Abaya said.

Abaya even had an explanation why nothing moved under the watch of Mar. “My predecessor was pretty much into details and processes, assessments and calculations. I am pretty confident that he has done the home work… that a system has been set up. We have an assembly line in DOTC and my priority is just to push things out, not to re-assess what he has done,” he explained.

Sec Abaya then went on to mention a litany of projects, most of which we have all heard before. But he didn’t say when these projects would be actually made shovel ready and construction actually happening.

Rene Santiago, an international consultant on transportation who also made a presentation to EJAP, pointed out that many of those projects can no longer be delivered by 2016 or before P-Noy’s term ends. Others, Santiago said, were designed to fail.

The DOTC chief said they are in close coordination with Tourism Secretary Mon Jimenez for all infrastructure requirements such as airports and ports to meet the goal of bringing in 10 million tourists in 2016. For example, the ports that cruise ships will use are included in the plan.

Other projects he mentioned are long awaited and often announced in press releases. So he announced them again… like rolling out the P10-billion new passenger terminal building for the Mactan-Cebu International Airport that will accommodate an additional 8 million passengers to complement the existing terminal. Abaya said DOTC will be contracting out to private sector partners the Operations and Maintenance of this airport.

Aside from Mactan, three more airports will have their O&M contracted out: the new Bohol Airport which will replace the existing Tagbilaran Airport; the Laguindingan Airport in Misamis Oriental in Northern Mindanao and the Puerto Princesa Airport in Palawan.

Actually, privatizing O and M of major airports is a good idea. Abaya should consider that for NAIA too. We suggested as much in a previous column. And P-Noy should consider it even if the NAIA GM is his bosom buddy who seems lost in his assignment anyway.

Other projects in Abaya’s list include: the P1.8-B automatic MRT ticket dispensers. The magnetic-based tickets will be scrapped, he announced, replacing it with contactless-based smart card technology. Abaya claims this will remove the long lines at the MRT. This will be pure PPP.

The Bus-Rapid-Transit system will be introduced in Cebu and in Makati. The one in Cebu was already presented at the NEDA ICC Cabcom meeting. The BRT will feature exclusive lanes, much cheaper than LRT-MRT, shorter construction time.

Abaya explained that BRT only becomes viable if competition is lessened or eliminated. Thus they will have to modify the franchises of buses and jeeps plying Ayala. The Makati project will eventually have to be brought up to NEDA but Abaya was confident that shouldn’t take time.

Abaya is looking at the private sector for the operation and maintenance of toll ways. He said it’s a position that DOTC is taking.

Previously, Abaya said government may soon start subsidizing the operations of privately run toll roads to boost investor confidence in the administration’s infrastructure program. Abaya said this government guarantee would ensure that private entities investing in key projects are able to get their money back.

That is well and good but it does not square with how government is treating Metro Pacific vis-a-vis SCTEX. The administration has refused to sign off on a previously agreed deal. Even after Metro Pacific agreed to increase government’s share of revenues, the deal has not closed.

Still, the Metro Pacific group has been patiently awaiting word from Malacanang on the status of the much-delayed final award of the contract to operate and maintain SCTEX. If you are an investor looking at other potential tollway projects, the Metro Pacific experience in SCTEX may give you second thoughts.

Anyway, it is now the job of Sec Abaya to coordinate all government agencies from DOF to NEDA to keep investor interest in his projects high. This is why I take exception to his statement during in his EJAP speech that it is through media’s “fair and balanced reporting that we earn the trust and confidence of potential investors and make the Philippines an attractive place for business.”

Mr. Abaya must be told the more important consideration for investor confidence is government policies and actions. When media points out government’s inability to get its big PPP projects going, it is not unbalanced reporting. It is the truth. Exposing bureaucratic inadequacy can get things corrected, inspire investors and save the taxpayer time and money.

Even technocrat Rene Santiago, a non journalist, in his presentation before EJAP, pointed out the miserable failure of government in getting mass transport projects going even before P-Noy took office. That’s not being negative, it is just being honest.

Santiago pointed out that the LRT-1 Cavite extension project has been pending since 1998. Project cost is P59 billion. Project implementation has been slow, he laments. Line 1 should have been completed in 2005, Line 2 extension should have been completed in 2006. Because of the delay in this project, Santiago estimates the opportunity loss at P80 billion.

 Santiago pointed out that the LRT 2 extension – the simplest project that could have been tendered – will not be completed by 2016. The economic loss as of today is already P5.4 billion for a project that costs less than P9 billion.

For now, count our blessings. Be happy Sec Abaya said the right things. The question now is simply, can he deliver? Of course it is not all up to him. He needs the Cabinet team – DOF, NEDA, DPWH to work with him too.

 In the end, it is all up to P-Noy. The President must drive his cabinet members to deliver and fast because time is running out.

Cut the red tape. Make quick and incisive decisions. Get things moving… the earlier the better! Local and foreign investors as well as ordinary citizens are waiting to be wowed. Hopefully we don’t get tired waiting and lose all hope.

Aviation safety sucks

A reader who comes from the aviation sector emailed me his views on what must be done to enhance our safety and win back our international rating.

First and foremost is the VOR/ILS (vhf omni range/instrument landing system) facility for MNL, it is always repaired but I think it needs to be replaced with the newer generation or model. It has outlived its full potential. Like an old model car, you can only repair it up to so many years.

Then, require local airlines to have their pilots undergo GPS/ILS coupled approaches (international airlines have done that). I don’t think the planes of some of the low cost carriers have that.

Our radar facility for Controllers needs to be replaced by modern and newer versions. These must be digitized with powerful computers that can help separate traffic for safety. Ours are the vintage ones.

Unfortunately, we seem to be waiting for a very big AIR DISASTER to happen right smack in NAIA due to poor facilities before government does something about the problems. Remember from now on I was the one who told you this first.

Category 1 is about AVIATION SAFETY, nothing else. They seem to forget that being in Category 2 means our airports are exposing the flying public to more dangers compared to the rest of the world.

And lastly and this doesn’t need money… all general aviation planes must be kept away from MNL. NAIA is overloaded with air traffic. We need to ease the load right away.

But can you drive away the BIG people’s private but sometimes vintage planes? Senators, Congressmen, CEOs, COOs, etc. That requires political will and Boo you know we don’t have that also. I can imagine a long line to get exemptions from Malacanang.

Teenagers

It’s been a while since we had teenagers around, but yes, only parents would understand our thought for the day.

Definition of a teenager? God’s punishment... for enjoying sex.

Boo Chanco’s e-mail address is . Follow him on Tweeter @boochanco