CEBU, Philippines - Mayor Tomas R. Osmeña yesterday proved wrong the claims of a top official of the Department of Transportation and Communication (DOTC) by presenting a letter about the proposed Light Rail Transit (LRT) system.
The mayor presented a letter from DOTC Secretary Leandro Mendoza stating that his office has not yet endorsed the P30 billion-LRT project to the National Economic Development Authority (NEDA) contrary to claims of DOTC Undersecretary Guiling Mamondiong.
The mayor provided media with copies of the letter that Sec. Mendoza sent to NEDA last September.
In that letter addressed to NEDA director general Augusto B. Santos, co-chair of the Investment Coordinating Committee (ICC)-cabinet committee, Mendoza informed NEDA of the unsolicited proposal of AMA Group Holdings Corporation to implement the 19- kilometer Metro Cebu mass rail transit project.
Mendoza said the proposed US$602.93 million project was submitted as an unsolicited Build-Gradual Transfer-Operate-Maintain (BGTOM) proposal, where the government through the DOTC shall pay US$48 million annual capacity fees to the proponent over the concession period.
While the government will pay USS48 million every year for 25 years, the proponent of the LRT project is also amenable of giving a 30 percent share to the government of the cash flow generated by the rail project during the period.
Mendoza informed NEDA that the AMA Group Holdings Corporation is the only proponent for the project.
“We are looking forward to your favorable action on this matter. You may contact the office of the Undersecretary for Railways for any further information required to facilitate the evaluation of the proposal,” Mendoza’s letter to Santos read. Some persons said that the phrase “looking forward to your favorable action” can be understood already that the DOTC already endorsed the LRT project to NEDA for approval.
But Cebu City planning and development officer Nigel Paul Villarete argued that even granting that such wording is already considered an endorsement, he said, still it could not stand as there are other requirements.
Section 10.7 of the Implementing Rules and Regulations of the Build Operate Transfer (BOT) law provides the procedures on how to evaluate of unsolicited proposals for projects.
First is that the government agency or units shall appraise the merits of the proposed project, then next is to see to ensure that the proponent’s qualification, third is to assess the appropriateness of the contractual arrangement and reasonableness of the risk allocation, the fourth is to inform the NEDA of the unsolicited proposal received by the concerned agency.
Villarete said if the procedures shall be strictly followed, the NEDA has no business of evaluating the proposed project because, he said, the first three requirements have not yet complied with by DOTC.
Osmeña criticized those government officials, who insisted that the LRT project will be implemented in Cebu without a thorough study and convinced him to support the project just for the reason that it will not cost the city even a single centavo.
The mayor said those who support for the LRT project in Metro Cebu should first wait for whatever outcome of the 11-month feasibility study of the proposed Bus Rapid Transit (BRT) that he is supporting.
Osmeña criticized Mamondiong for saying that the LRT-Mono Rail Transit will not disrupt the operation of the BRT, but it will compliment it instead, because the LRT would be in an elevated platform and even travel faster than buses.
The Cebu City Council has already given its support to the BRT as the city’s mass transport system.
The mayor earlier said he believes that some politicians are working hard for the immediate approval of the project so they could have more campaign funds in the next year’s elections.
Osmeña, who had stopped attending the meetings of the Regional Development Council (RDC) chaired by Gov. Gwendolyn Garcia, said he will attend the next RDC meeting on December 17 to formally explain to the members his arguments on why he is strongly against the LRT-MRT project. — /NLQ (FREEMAN NEWS)