Frustration with the DOTr warranted?
Among corporate circles, political observers, and opinion shapers in social media, frustration is palpable at the pace by which the Department of Transportation (DOTr) is implementing its infrastructure projects. Talk is rife that the DOTr may be going the way of the DOTC, under Emilio Abaya’s bungling leadership.
Impatience is rising given the sudden shift in preferred modes of financing – from Public Private Partnerships (PPP) to Official Development Assistance. The preference for complicated hybrid PPP models in place of simpler deals and the sudden cold treatment towards unsolicited projects. All these means delays – and delays mean missed economic opportunities and continued suffering of our people.
I needed to hear the side of DOTr to find out if the frustration is warranted. I attended the Infrastructure Congress three weeks ago to get the update I needed. BCDA President, Vince Dizon, spoke on behalf of the infrastructure team, including the DOTr. Mr. Dizon’s presentation came with the usual power point presentation that whetted the audience’s appetites with numerous mega projects. I had seen this presentation before and was no longer impressed with the song and dance routine. My interests are projects in the pipeline, here and now.
First off, a disclaimer. Mr. Dizon speaks for the entire administration when he says that they never claim to be the main proponent of certain projects. Most of them were conceived and/or developed during past administrations. That said, what this administration takes credit for is getting them off the ground. Fair enough.
This is what I found out. On the aviation sector, the Puerto Princesa Airport has been completed last April through a
Korean ODA. Meanwhile, the international airports of Mactan, Bohol and Bicol are in their advanced stage of construction and scheduled for completion in 2018. Simultaneously, 19 airports have already been night rated, while eight more are underway.
On the railway sector, construction of MRT-7, from North Edsa to San Jose Bulacan, is in full swing with phase one seen to be operational by the first quarter of 2020. LRT 1 Extension from Baclaran to Cavite finally broke ground last month. It is scheduled for completion on October 2021. The LRT2 extension from Santolan to Antipolo will be operational in 2019 following a three year delay.
As for transport depots, the Southwest Integrated Transport Terminal is scheduled for ground breaking in the next few weeks and due for completion on April, 2018. However, there is bad news for the 13.7-hectare Grand LRTMRT Common Station. While a consensus was reached on its final location, we heard Speaker Pantaleon Alvarez has thrown a monkey wrench on the agreement anew putting the project in flux.
On the maritime front, construction for the Cavite Gateway Terminal has broken ground and is set for completion on January, 2018. This will reduce land transfers (by truck) by 140,000 trips a year. Moreover, 20 maritime ports across the country are being modernized simultaneously.
Sec. Tugade’s plan to retire decrepit jeepney has also made a break through. Earlier this year, the DOTr signed a financing agreement with the Land Bank to provide jeepney operators with Euro 4 engines. There are 220,000 registered jeeps nationwide of which 90% are due for replacement.
So, is the frustration warranted? You be the judge. As for me, I reckon the DOTr has done enough considering they are working against the bureaucratic tide without the benefit of emergency powers.
The DOTr must realize that observers will never be satisfied until the majority of projects in its power point presentation sees the light of day.
**** Andrew is an economist, political analyst, and businessman. He is a 20-year veteran in the hospitality and tourism industry. For comments and reactions, e-mail andrew_rs6@ yahoo.com. More of his business updates are available via his Facebook page (Andrew J. Masigan). Follow Andrew on Twitter @aj_masigan.