Since this column started, it has featured only personalities in the private sector. But as everyone in the business community knows, government and its various agencies and instrumentalities, as well as public programs and policies provide the atmosphere and design the playing field in which business is supposed to operate and flourish.
It is for this reason that Spare Time has decided to widen its coverage and feature key personalities in the public sector to give the business community a new insight into people that they deal or have to deal with.
The Bases Conversion and Development Authority (BCDA) was tasked primarily to convert and develop what used to be properties occupied by American military bases such as those in Clark and Subic, including those in Camp John Hay in Baguio.
BCDA chairman Felicito “Tong” Payumo, a former member of Congress and chairman of the Subic Bay Metropolitan Authority (SBMA), has been key to providing the proper investment climate to both foreign and local investors, either through bills that he authored or laws that he has implemented. Here are excerpts from our interview.
What is it about public service that attracts you to it? How long have you worked with the public sector?
I’ve been in the public sector since 1987 when I first served as Representative of the first district of Bataan. So, it has been 25 years of public service, in the legislative and in the executive department.
And strangely,what I planned for and legislated in Congress, I was fortunate to be given the opportunity to implement as an executive. I remember that my first privilege speech in 1988 decried our lack of an alternative and comprehensive plan in the event that the US military forces leave Subic and Clark and the other military bases. I was aghast that we were only a few years away from the expiry of the military bases agreement in 1992 and yet we were so unprepared. I thought that whether or not we ended up extending the agreement, it was important that we had a credible plan for the alternative uses of the Bases so we could negotiate from a position of strength. I say credible because lacking such plan the US would see through our bluff and bluster and just throw us a pittance for an extended term. Why? Because they would know if we could walk away from the negotiating table or not. That would depend on our “best alternative to no agreement” or “BATNA” to professional negotiators. It turned out we had none. Learning from the lessons of unprepared Singapore whose officials had to fly to London to ask the British government to allow its forces to stay longer, we thought it would be the height of humiliation if we had to ask the US to stay a little longer because we were not yet ready – this, after shouting out “Yankee, go home” slogans.
That started the national debate on the military bases and caused the creation of the Legislative-Executive Bases Council (LEBC) headed by Jose Abueva, of which I was a member. The Council drew the road map for the Bases conversion. We were among the principal authors of RA 7227 that created the Bases Conversion Development Authority and the Subic Bay Metropolitan Authority, both of which I had the opportunity to serve.
My first resolution was for creating the Central Luzon development plan in the aftermath of the eruption of Mt. Pinatubo. JICA funded the project which delineated the growth corridor and the rainbow highway which were realized with the Subic-Clark Alliance and the SCTEX.
But you’ve also worked with the private sector. What were you doing before you entered politics?
Before my stint in the public sector, I was in the private sector for close to 30 years. My private sector experience in Procter&Gamble Phl., Mobil, NYC., and as president of Engineering Equipment Inc.,had been of immense help to me in public service. I did not have the public sector in my planned career path. I was sucked into the vortex of Bataan politics when my brother who was mayor of my town (Dinalupihan) was ambushed.
What can you say about the investment regime in the country, say compared to our neighbors? Some observers say that the present government is too indecisive, too slow, in making things happen (i.e, PPP). What’s your reaction to that?
I am quite bullish about investments in the country now, whether in manufacturing, land development or tourism. From the inquiries we have been getting in the Subic-Clark corridor up to Camp John Hay and Poro Point, we are optimistic that Foreign direct investments will flow in to the country not just as a low cost alternative to the increasingly costly operations in Japan and even China,but as a place where premium is given to effective governance and political leadership in the drive against graft and corruption. Graft, not only in the executive and the legislative branch of government but specially in the judiciary, is now being given focus. But until foreign investor partners stop putting in arbitration clauses where the venue is placed outside the country (as they do now because they have no confidence in hometown court decisions), we can not yet say we have licked the problem of graft and corruption in the judiciary. Fortunately, the high profile drive (by example) of President Aquino against all forms of venality has earned the nod of investors. Talks about indecisiveness and slow action in government had been slowly decreasing. I agree with the President that setting right the crooked practices of the past took time. I think we will now see more dynamism in government now especially in infrastructures whether by government or in PPP projects. Again, having been the principal author (with then Congressman Joe de Venecia and others) of the BOT law (now PPP), my work has come full circle. We have just concluded the business and operations agreement with MNTC whereby the latter would operate and maintain the SCTEX with the obligation to service our P34-billion JICA loan for the construction of the expressway plus a P30 billion extra revenue share for BCDA. It is a PPP scheme that has turned a P34-billion project to zero cost to the government.
What are the remaining assets of BCDA and what are your plans for these?
BCDA still has limited land assets in Fort Bonifacio and very little in Villamor. John Hay and Poro Point are not big to start with, so it is really Clark that still has vast areas especially in the sub zone. It is in this area that a new megapolis can be built. When the Clark Airport becomes a gateway, initially for budget carriers, and eventually for Legacy carriers, the full potential of the region can be realized.
The Subic -Clark corridor is the only place where a maritime and an aviation complex can be a reality separated only by a 30 minute drive over a first class expressway. When finally connected to NAIA with the NLEX -SLEX connector, Clark will only be 70 minutes away from NAIA. Then we will see the place booming for industry, commerce and tourism.
What sport have you or do you engage in?
I used to play tennis but now I only play nine holes of golf a week, at most. My wife insists that I exercise more . But what makes me get up in the morning are the projects we are lining up. We now are completing the concept study for an elevated monorail loop for Bonifacio and Villamor /NAIA 3 connected to the MRT at Guadalupe/EDSA. Subsequent phases will include Makati and the other airport terminals. With MRT, LRT and PNR connected to the loop, it will be serving the entire Metro Manila with 13 million population. Subject to a feasibility study, we are optimistic that the financial viability is high. Sydney, with 3.5 million people has one. Tokyo’s first urban type monorail, built for the Tokyo Olympics, still operates and has stops at a few steps from Haneda’s departure lounge. We can only imagine the traffic problem between Tokyo and Haneda if there is no monorail. I get excited talking about these projects.
On weekends, I look forward to going to a mountain resort in Tala, Orani, Bataan. I have to leave Manila on weekends to hike and trek in the Bataan National Park.
How are you as a boss? What’s your management style?
I am a consensus builder, if you can call that a management style. I sometimes provoke debates and argumentation to make sure I get both sides of the issue.
At my age, I am not impulsive and tend to view issues with a wider perspective, with fairness being always a consideration.
Do you collect anything? Tell us about it? What’s your most prized collection?
I am not a collector and have no prized collection. But I don’t easily part with my old comfortable clothes or shoes which my wife always give away. Collector, no, hoarder, yes.
What’s your most favorite spot in the world and what places do you want to visit and why?
Places I love to visit again? Africa, other than Serenggeti in Tanzania that I have already enjoyed immensely with my family. Next would be Alaska before the glaciers melt.
If you were to leave a legacy , what would it be and why? What would you like to be remembered for and why?
I have always said that we are given an opportunity to do or build only once. BCDA is challenging even in its day to day tasks. We have land assets to dispose of or liquidate. But as I have been saying, I don’t want to be remembered merely as a liquidator. We must be remembered for what we leave behind. The elevated monorail to solve effectively the daily traffic gridlock between Makati and the Fort is one legacy we want to leave behind.