Neda sets requirements for OK of revisions in joint-venture proposals

Economy

Written by Cai U. Ordinario / Reporter

Wednesday, 21 July 2010 20:32

THE proposed revisions of the Philippine Constructors Association (PCA) to joint-venture (JV) guidelines will need the approval of the Infrastructure Committee (Infracom), which originally drafted these, and the Investment Coordination Committee (ICC). But Rolando G. Tungpalan, deputy director general for investment programming of the National Economic and Development Authority said the Neda was not averse to proposed changes in any policy or JV guidelines. All government policies should be updated from time to time and a proposal like the PCA’s is a welcome development. The Neda is the secretariat of interagency committees like Infracom and the ICC, he said. “It [proposal] will likely go through Infra. If there is a need to revise, we will revise. We will review because [as in] every policy issuance, it is good practice to review,” Tungpalan said. Rueven S. Reinosio, Neda assistant director general for infrastructure, regulation and contract review services, said that while Infracom has not yet received the proposal from PCA, it is part of governance practice that proposals go through Infracom and then ICC to reach the Neda Board. Even without the letter containing the proposal, Reinoso said. Infracom is already in the process of reviewing JV guidelines as well as the build-operate-transfer law and the implementing rules and regulations. Earlier, PCA Executive Director Manolito Madrasto said PCA sought the revision of the Swiss-Challenge provision in the guidelines and pushed for the evaluation of JV projects by the Neda ICC. A Swiss Challenge is a process by which other private groups could still come forward to make an offer to match the bid of the proponent. Based on Annex C of JV guidelines, which contains provisions on competitive challenge or Swiss challenge, parties are only given 30 days to complete and submit a proposal to the government. Madrasto said international standards state that a Swiss Challenge allows parties to submit proposals for simple projects within a minimum of 180 days. For proposals on complicated projects, Swiss Challenges even take as long as a year. The PCA official said projections are crucial to creating a proposal; the final cost and proposal will hinge on careful inflation projections. Apart from the Swiss Challenge provision, Madrasto said a thorough evaluation by the Neda ICC would also be crucial to transparency. The committee’s mandate includes evaluating and approving big-ticket government projects. In the initial JV guidelines drafted and approved by the Neda, all JV-funded projects would have to go through the ICC. However, in the version approved by the Neda Board under then-President Arroyo, JV-funded projects were not required to go through the ICC. Madrasto said this has become a major concern for the PCA and other private-sector entities because under the setup, there was a lot of room for abuse and misuse.

ADB offers P184-B devt aid to RP for next 5 years

Economy

Written by Wilfredo Rodolfo III / Reporter

Thursday, 22 July 2010 20:19

THE Asian Development Bank (ADB) has earmarked up to $4 billion (P184 billion) in development assistance to the Philippines in the next five years, its top officials said on Thursday. The bank’s top officers are on an eight-month-long “review” of their operational strategy in the country, with the first stop in Cebu City. The review aims to identify priority areas that need assistance, Neera Jain, ADB country manager, said in Cebu City. Their consultations with officials concerned will help the ADB craft its new five-year development plan in the country. The bank made the rounds of the city, meeting local government officials, line agencies and the private sector to get their inputs. The officers will go to Davao City in August. “We are seeing various recommendations but those were desk studies. We need to see the situation from the ground up,” Jain said. “We know we need to do a better job. We are on listening mode now.” Jain brought the entire country team into the consultations. He identified private-sector participation as key in the Visayas; poverty is the top priority in Mindanao. In Luzon, particularly in Calabarzon, he said, equitable growth is being considered. Initially, Jain said there is a need to focus on infrastructure, the environment and governance in the country­—areas where he sees ADB can be of help. “It’s not a luxury to go to the private sector; it is a must,” Jain said. He acknowledged that the ADB needs to beef up its cooperation with the private sector in the Visayas. Its last assistance to the island came in the form of a $120-million loan to a coal-fired power plant being constructed by Kepc-SPC. Jain said they are looking at funding more development efforts.

Cutie wants two more flyovers in the north

By Garry B. Lao/BRP (The Freeman) Updated August 04, 2010 12:00 AM

CEBU, Philippines

– Another two flyovers in Cebu City north district were proposed for construction to reduce traffic congestion and ensure the uninterrupted flow of traffic.

In House Bill 820 and HB 851, Rep. Rachel Marguerite "Cutie" del Mar proposed a flyover be constructed at the junction of M.J. Cuenco Ave. and Gen. Maxilom Ave., and another at the junction of Gorordo Ave. and Archbishop Reyes Ave.

"The proposed project is consistent with the much-needed program to improve the transport and traffic situation in Cebu City in view of accelerating overall economic development in the city," del Mar said in her proposed House Bill.

Del Mar said the rapid growth of population and the steady flow of economic activities must be matched by an efficient, effective and comprehensive system of transport and traffic management, which is the reason why it is necessary to construct flyovers in the area.

If the bill is approved in the House and the Senate, it will be the Department of Public Works and Highways that will undertake the constructions of the two flyovers.

Del Mar said the amount needed for the implementation shall be charged against the allocation of the DPWH. (THE FREEMAN)

Central Visayas economy to improve by third quarter

By Jesica B. Natad (The Freeman) Updated August 03, 2010 12:00 AM

CEBU, Philippines – The economic performance of Central Visayas is expected to improve further in the third quarter of the year, based on the result of the Business Expectations Survey (BES) conducted by the Bangko Sentral ng Pilipinas (BSP).

According to the BSP survey, the business outlook for region 7 increased in the second quarter of 2010. The next quarter outlook index also indicates further improvement of business and economic performance in the third quarter of the year.

Region 7 or Central Visayas is composed of Bohol, Cebu , Oriental Negros and Siquijor.

The BSP conducts quarterly BES among a random sample of the top 7000 corporations in the country. In region 7, the BES has a sample size of 146 companies, of which 77.4 percent or 113 respondents for the third quarter of 2009 survey.

In general, the overall economic situation in the Visayas, in terms of population, unemployment, prices, economic production and financial resources has been positive. Visayas is comprised of regions 6, 7 and 8.

According to the BSP data, the Visayas population is growing slowly compared to Luzon and Mindanao. Unemployment rate is relatively low but underemployment is high except for Central Visayas. Inflation rate is low and stable. The economy is focused in agriculture, fishery and forestry and services. The real economy in the island s growing but slow compared to Luzon. Financial resources are improving. Business outlook is generally optimistic.

Population is growing at the rate of 2.02 percent every year. This is the same as the national average, which is higher than the growth rate of the national capital region but lower than the growth rate for Mindanao and Luzon .

Visayas' most significant contribution to the national economy are in agriculture, fishery and forestry (AFF) followed by services. Some 17.8 percent of AFF produced in the Philippines come from the Visayas.

The industry contribution of Visayas to the economy is smallest among the island groups. However, the services sector contributes more to the economy than Mindanao.

Visayas contributes 18 percent to the country's mining and quarrying production. Region 6 contributes the most to the country's mining production while

Among the Visayas region, Central Visayas contributes most to the country's industry production of at 6.42 percent. With regard to goods and services produced, region 6 and 7 contributes 87.2 percent of all goods and services produced in the Visayas. (THE FREEMAN)

Gullas refiles province-wide ecozone bid ahead of CCCI

By Ehda M. Dagooc (The Freeman) Updated August 02, 2010 12:00 AM

CEBU, Philippines – While the Cebu Chamber of Commerce and Industry (CCCI) has yet to decide on whether to re-file the Cebu Economic Development Zone (CEDZ) Bill or not, Cebu first district Representative Eduardo Gullas already went ahead and filed House Bill 91 proposing Cebu province as an economic zone.

In an interview with Gullas over the weekend, he said this being his third time to push the same bill at the House of Representatives only shows his earnestness to realize the province-wide economic zone proposal for Cebu.

Back in 2004, Gullas crafted and filed a similar bill in the 13th Congress, advocating his vision to make Cebu a more competitive investment

destination. In the 14th Congress, he again filed the same bill even before CCCI and other Cebuano representatives jointly filed the CEDZ or House Bill 1319.

And now, Gullas again displayed his keen interest in making this proposal a reality by filing again, for the third time, the same Cebu-wide economic zone proposal at the 15th Congress.

"I filed the Bill on the first working day of the 15th Congress on July 1 [2010]. And I commend the help of the Business sector in Cebu, the Cebu Chamber of Commerce and Industry and Cebu Business Club for their help in some amendments of the Bill," said Gullas.

Although, CCCI still remains undecided if it is going to pursue its plan to re-file the same Bill this time, Gullas said "I'll give it my best shot. I sincerely believe this is the best for Cebu."

According to Gullas, he will enlist some Cebuano Congressmen who expressed interest to support the Bill, and may co-author with him in this bid.

Gullas hopes that CCCI will join with him and pursue their plan to re-file the Bill, despite criticisms from other parties.

n a separate interview earlier, Cebu fifth district Representative Ramon "Red" H. Durano VI expressed willingness to support the re-filing of the CEDZ in Congress this year, saying this bill can provide good economic future for Cebu province.

Like Gullas, Durano also believes that the Bill if passed into law is good for Cebu province.

The CEDZ is envisioned to be a paradigm of an effective and functioning Public-Private Sector Partnership with the private sector taking the lead and government providing infrastructure and institutional support and contributing part of the needed resources.

The bill is authored by all of the eight congressmen from Cebu on the 14th Congress and was jointly supported by local business groups including international funding groups, like the German Technical Cooperation (GTZ).

Gullas is determined to take on the fight, and sincerely hopes that other Congressmen, who wanted to make Cebu a world-class investment destination, will join with him.

On the other hand, considering the criticism given by Cebu South District representative Tomas R. Osmeña on the CEDZ proposal, the CCCI board members and the CEDZ committee decided to brainstorm on what to do with proposal, either to put it to rest or re-file it as earlier planned, said CCCI president Samuel Chioson.

Last month, Osmeña criticized the business sectors' ongoing bid in making Cebu as an entire economic zone province.

Osmeña told businessmen that the development of Cebu is based on its ability to get adjusted to globalization, and not merely based on what anybody thinks.

The former Cebu City Mayor emphasized that if the CEDZ under the House Bill No. 1319, will be passed into law, the entire Cebu will be under the "chamber's" management. (THE FREEMAN)