daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine

Go Back   SkyscraperCity > Asian Forums > Philippine Forums > Around the Philippines > Transport, Urban Planning and Infrastructure > Highways and Roadways



Reply

 
Thread Tools
Old August 13th, 2004, 05:24 AM   #1
muzic_lover2981
jon
 
Join Date: Jul 2004
Location: angeles city
Posts: 69
Likes (Received): 7

Subic-Clark-Tarlac Expressway

Subic-Clark-Tarlac toll project probe sought
By JUDY T. GULANE, Reporter

A resolution in the House of Representatives has directed the Committee on Oversight to conduct an inquiry in aid of legislation into the "alleged overpricing" of the first portion Subic-Clark-Tarlac Expressway Project that will be undertaken by the Bases Conversion Development Authority (BCDA).

In House Resolution No. 95, Quezon Rep. Danilo E. Suarez, who is also the chairman of the Committee on Oversight, noted that the 41-kilometer Subic-Clark toll project -- the first portion of the 94.5-kilometer expressway project -- will cost a total of PhP13 billion, which means that it will cost PhP310 million per kilometer.

BCDA had approved an estimated project cost of PhP8 billion for the Subic-Clark toll project, he said, based on the figures supplied by three Japanese consultants -- Pacific Consultants, Inc., Nippon Koei and Katahira.

The lowest bid for this particular stretch of the expressway project, however, was PhP13 billion from the Hasama Construction Co. of Japan.

Mr. Suarez said the average road construction cost is between PhP35 to 50 million per kilometer for expressways with two lanes, and between PhP70 to 100 million per kilometer for expressways with four lanes. This makes the PhP13 billion Subic-Clark stretch essentially overpriced.

"(T)he PhP13 billion cost of the Subic-Clark Toll Project is more than one-half of the PhP21 billion facility that is expected to cover the cost of the entire 94.5 kilometer expressway," Mr. Suarez said in his resolution, "which leaves a mere PhP8 billion to construct the remaining 53.5 kilometers of the Subic-Clark-Tarlac Expressway."

"(T)his highly irregular and anomalous transaction, reminiscent of the two-lane Diosdado Macapagal Avenue in Manila's reclaimed area, which cost PhP75 million per kilometer, should be stopped as this is grossly disadvantageous to the government," he said.

Recently, the National Economic and Development Authority (NEDA) directed the BCDA to conduct another bidding for the Subic-Clark-Tarlac Expressway Project after its total project cost ballooned to PhP27 billion from the approved PhP18.74 billion.

The additional project cost was due to a redesign of the expressway, which essentially makes it a new project that needed rebidding, NEDA Director-General Romulo L. Neri had said.

A rebidding has to be made in order to avoid legal problems, such as the Supreme Court nullifying the contract, like in the case of Terminal 3 of the Ninoy Aquino International Airport.

NEDA's Investment Coordinating Committee will have to approve the new project design before the BCDA can call for new bids.

Once built, the Subic-Clark-Tarlac Expressway Project will be the country's longest. Package I of the project will extend from the Subic Freeport to the former Clark Air Base, while Package 2 will extend from Clark to the Hacienda Luisita in Tarlac.

The Japan Bank of International Cooperation will provide $315 million, or 85% of the total cost, for the project.
muzic_lover2981 no está en línea   Reply With Quote

Sponsored Links
 
Old August 13th, 2004, 09:18 AM   #2
absent-minded
Registered User
 
Join Date: Oct 2003
Location: Quezon City
Posts: 1,159
Likes (Received): 0

are his arguements correct? I mean, do expressway-quality roads cost only P50M/km? seems a tad bit too little...
absent-minded no está en línea   Reply With Quote
Old August 13th, 2004, 10:18 AM   #3
federal
No Fiscal crisis...
 
federal's Avatar
 
Join Date: Apr 2004
Location: Manila/LA
Posts: 854
Likes (Received): 0

noted that the 41-kilometer Subic-Clark toll project -- the first portion of the 94.5-kilometer expressway project -- will cost a total of PhP13 billion, which means that it will cost PhP310 million per kilometer.

just a thought, they the estimate include the interchanges? I heard there would be quite some so baka may error na naman sa estimate ng House. Damn, delayed na naman to.
__________________
Support the Skyway Project Phases 2 and 3!

ANIMO LA SALLE!
federal no está en línea   Reply With Quote
Old August 13th, 2004, 10:25 AM   #4
absent-minded
Registered User
 
Join Date: Oct 2003
Location: Quezon City
Posts: 1,159
Likes (Received): 0

Quote:
Originally Posted by federal
just a thought, they the estimate include the interchanges? I heard there would be quite some so baka may error na naman sa estimate ng House. Damn, delayed na naman to.
oh yeah... I forgot all about the interchanges.
absent-minded no está en línea   Reply With Quote
Old August 13th, 2004, 11:43 AM   #5
amras
Batang Munti
 
amras's Avatar
 
Join Date: Apr 2004
Location: Manila/Singapore
Posts: 746
Likes (Received): 2

but 310 million per kilometer is still way too high... if they can still lower it they should...
amras no está en línea   Reply With Quote
Old August 22nd, 2004, 01:38 PM   #6
federal
No Fiscal crisis...
 
federal's Avatar
 
Join Date: Apr 2004
Location: Manila/LA
Posts: 854
Likes (Received): 0

Will this SCTEx link with the NLEX? I mean will there a sophisticated interchange for this crossing of two major Expressways? Naks...
__________________
Support the Skyway Project Phases 2 and 3!

ANIMO LA SALLE!
federal no está en línea   Reply With Quote
Old August 22nd, 2004, 03:21 PM   #7
ryanr
Registered non-User
 
Join Date: Sep 2002
Location: Vancouver
Posts: 7,004
Likes (Received): 11

I think so, Federal. They should do that.
ryanr no está en línea   Reply With Quote
Old September 20th, 2004, 01:06 PM   #8
renell
Here Since 2002
 
renell's Avatar
 
Join Date: Sep 2002
Location: Sydney/Metro Manila
Posts: 6,939
Likes (Received): 4

according to the NLEX redevelopment plan, it is supposed to be Phase 3, after the rehabilitation of NLEX, and connecting C-5 (i think) with NLEX in Bulacan. not sure about the details, there was a map somewhere
__________________
dafuq I've been here ten years?!
renell no está en línea   Reply With Quote
Old September 21st, 2004, 03:36 AM   #9
archie
Registered User
 
Join Date: May 2004
Posts: 30
Likes (Received): 0

this i got from the BCDA web site.. *i think i also posted one in the Subic-Clark thread*
_____________________________

CHRONOLOGY OF THE SUBIC-CLARK-TARLAC EXPRESSWAY PROJECT
BCDA
BCDA
Tuesday, August 24, 2004

21 October 1999
NEDA approves project at a cost of Php 15,247 Million

April 2000
BCDA submits an Updated Implementation Program seeking 22.9% increase in project
cost from Php 15, 247 Million to Php 18,740 Million due to changes in design and scope.

2000
NEDA approves 22.9% increase in cost at Php 18,740 Million.

February 2002
Rufo Colayco is appointed President and CEO of BCDA

2002-2003
BCDA consultants perform detailed design and engineering work. During that period,
JBIC conducted quarterly Project Implementation Review meetings with BCDA and NEDA.

September 2003 to January 2004
BCDA conducts tender for Package 1 (Subic-Clark) and Package 2 (Clark-Tarlac). By that time, estimated cost of civil works increases to Php 22,600 Million.
Despite this fact, Approved Budget for Contract (ABC) was still bid out at Php 20,078 Million, which was equivalent to the loan proceeds for the civil works provided by the JBIC loan. This was done on the premise that competition might cause bidders to submit proposals closer to the ABC than the (higher) estimated construction cost.

February 2004
Bids amounted to Php 27,013 Million, exceeding the ABC by Php 6,938 Million (35%) and the estimated construction cost by Php 4,413 Million. Under JBIC guidelines, BCDA had the option to either re-bid or negotiate and reduce the scope of the road without affecting its functionality. BCDA chose to negotiate the project.

20 July 2004
Socioeconomic Planning Secretary Romulo L. Neri declares that the project should be re-bid due to design changes and the lowest evaluated bid exceeded the ABC and is in violation of RA 9184. Sec. Neri issues this statement in a press conference a day before (19 July 2004) sending BCDA a letter.

July 2004
BCDA explains that the design changes account for only 17%, well within NEDA’s 20% contingency on changes of scope. Furthermore, since the project is being funded through a special yen loan package, the project falls under the JBIC Procurement Guidelines, which allows BCDA to negotiate with the bidders in order to reduce costs. Ergo, BCDA did not violate RA 9184 as Neri asserts.

16 August 2004
NEDA still insists on redesigning and re-bidding the project. Neri also puts forth an unrealistic timetable for re-bidding which, according to him, would take only 11 months to complete.

17 August 2004
BCDA explains to Neri that under the JBIC rules, the bidding process would take a minimum of 20 months.

Present
Based on negotiations so far, BCDA was able to negotiate the price to a reduced Php 22,078 Million, which is slightly under the estimated construction cost. Further negotiations could further reduce the contract price down to the Php 20,078 Million ABC level, thereby eliminating the need to conduct a re-bid of the project.
archie no está en línea   Reply With Quote
Old September 30th, 2004, 01:34 PM   #10
Solblanc
hot
 
Solblanc's Avatar
 
Join Date: Jun 2004
Location: Manila
Posts: 2,164
Likes (Received): 135

No rebidding for P21-B expressway project

source:http://money.inq7.net/topstories/vie...9&dd=30&file=3

No rebidding for P21-B expressway project

Gil C. Cabacungan Jr.
Inquirer News Service



PRESIDENT Gloria Macapagal-Arroyo has vetoed a plan of Socioeconomic Planning Secretary Romulo Neri to rebid a P21 billion project to build a 94-kilometer expressway that will link the Subic Bay Freeport Zone west of Manila, the Clark Special Economic Zone north of Manila and an industrial zone in the northern province of Tarlac.

At a meeting in Clark on Tuesday, the President ordered the National Economic and Development Authority, which Neri heads, to approve the project after the Bases Conversion Development Authority (BCDA) successfully negotiated with the Japanese contractor to reduce the project cost to P21 billion from P27 billion.



BCDA president Rufo Colayco, who opposed Neri's sudden call for a rebid, hailed the President's decision, which he said should lead to finalization of the contract with the project's financier, the Japan Bank for International Cooperation.

Arroyo decided against a rebid when Neri failed to guarantee that the project could be auctioned off to a new contractor with better terms in the next six months.

While the BCDA was in the middle of negotiations last June, Neri called for a rebidding and a redesign of the expressway project, which he said was "overpriced."

Colayco opposed a rebid, saying it would delay the project and strain relations with Japan, the country's biggest source of official development assistance.

The BCDA believes that infrastructure projects, including the expressway, will convince more foreign businesses to do business in the central and northern Luzon regions.

The expressway project is envisioned to serve as the backbone of a new economic growth corridor that in time could be more significant than Metro Manila.

It aims to provide a direct link among the Clark, Subic, the Luisita Industrial Park in Tarlac and the Bataan Technology Park near Subic. With INQ7.net
__________________
Don't hate me for being handsome. Hate me for being handsome AND smart
Solblanc no está en línea   Reply With Quote
Old September 30th, 2004, 05:23 PM   #11
SKYLINEPIGEON
slightly used
 
SKYLINEPIGEON's Avatar
 
Join Date: Oct 2002
Location: RIYADH, SAUDI ARABIA
Posts: 1,552
Likes (Received): 0

Gov't OKs P21-B Subic-Clark-Tarlac expressway project
Posted: 8:02 PM | Sept. 30, 2004

THE GOVERNMENT has approved a 21-billion-peso road project that would connect former US military bases at Subic Bay and Clark Field with the northern province of Tarlac, the state-run Bases Conversion Development Authority (BCDA) said.

The cost of the Subic-Clark-Tarlac expressway project has been reduced from the initial bid price of 27 billion pesos, said the BCDA.



"The reduction in cost was possible through negotiations with the lowest bidders and value engineering. It must be noted that the quality of the civil works and the functionality of the road were maintained," BCDA said in a statement.

The government hopes to complete negotiations with the lowest bidders by October, while construction is set to begin in January.

KOJM Joint Venture and Hazama-Taisei-Nippon Joint Venture were the lowest evaluated bidders for the project's phases 1 and 2, respectively.

The expressway project, which is targeted for completion by July 2007, will connect vital economic areas in the central region of the main Philippine island of Luzon.

The two former American military bases are now special economic zones.

The road project is being financed by a 40-year loan from the Japan Bank for International Cooperation.

The 41.93-billion yen loan, which will cover 85 percent of the project's total cost, carries an interest rate of 0.95 percent per annum.
__________________
Camp Boss
SKYLINEPIGEON no está en línea   Reply With Quote
Old October 1st, 2004, 12:39 AM   #12
ryanr
Registered non-User
 
Join Date: Sep 2002
Location: Vancouver
Posts: 7,004
Likes (Received): 11

finally...they should get this expressway well underway now. It is quite important to lure investors into central luzon. And good that they were able to lower the costs.
ryanr no está en línea   Reply With Quote
Old October 1st, 2004, 02:57 AM   #13
renell
Here Since 2002
 
renell's Avatar
 
Join Date: Sep 2002
Location: Sydney/Metro Manila
Posts: 6,939
Likes (Received): 4

according to some maps i saw, this one is connected to NLEX. anyone can confirm that?
__________________
dafuq I've been here ten years?!
renell no está en línea   Reply With Quote
Old October 1st, 2004, 03:13 AM   #14
federal
No Fiscal crisis...
 
federal's Avatar
 
Join Date: Apr 2004
Location: Manila/LA
Posts: 854
Likes (Received): 0

i think.... It think it's phase 2 or something
__________________
Support the Skyway Project Phases 2 and 3!

ANIMO LA SALLE!
federal no está en línea   Reply With Quote
Old October 1st, 2004, 06:27 AM   #15
muzic_lover2981
jon
 
Join Date: Jul 2004
Location: angeles city
Posts: 69
Likes (Received): 7

P21-B expressway project may start in January
Posted: 1:55 AM | Oct. 01, 2004


Inquirer News Service

printable version email a story write the editor feedback


CONSTRUCTION of the Subic-Clark-Tarlac Expressway project may start in January, as the Investment Coordinating Committee of the National Economic and Development Authority (NEDA) has approved the project on condition that it would cost no more than P21 billion, the Bases Conversion Development Authority (BCDA) said.

The 94.5-kilometer expressway will link the Subic Bay Freeport Zone west of Manila, the Clark Special Economic Zone north of Manila, and an industrial estate in the northern province of Tarlac. It is envisioned to catalyze economic activity in central and northern Luzon.



With the NEDA approval of the project, the BCDA needs only two more approvals from the Japan Bank for International Cooperation (JIBC), which is funding the project, BCDA president and chief executive Rufo Colayco said in an interview.

"We expect to finalize the negotiations for the price with the contractors by the third or fourth week of October," Colayco said. "JBIC needs to approve that."

The lowest bidders for the two segments of the highway were KOJM consortium and the Hazama-Taisei-Nippon group, Colayco said.

He said that through negotiations with the bidders, the BCDA had reduced the cost of the civil works component to P22.1 billion from the initial bid price of P27 billion.

On instructions of Malacañang, the BCDA will again negotiate with the bidders to cut the cost further to P21 billion.

Both the 50.5-kilometer Subic-Clark component and the 44-kilometer Clark-Tarlac component will consist of four-lane asphalt concrete pavements with asphalt overlay.

The project covers a total of four major bridges spanning the rivers of Gumain, Porac, Pasig-Potrero and Sacobia-Bamban; eight interchanges; 35 minor bridges, and 13 overpasses.

"We expect to complete in late November the negotiation on the details of the contracts, which JBIC must also approve," Colayco said.

He said that if the timetable is met, the contracts could be awarded by December.

The 30-month construction period can then begin in January 2005 and end in July 2007, he said.

The BCDA originally planned to begin construction work at the start of this year. Ronnel Domingo, with INQ7.net


here's the another link:
http://bworld.com.ph/current/TopStories/topstory5.html

Last edited by muzic_lover2981; October 1st, 2004 at 06:33 AM.
muzic_lover2981 no está en línea   Reply With Quote
Old October 1st, 2004, 01:46 PM   #16
federal
No Fiscal crisis...
 
federal's Avatar
 
Join Date: Apr 2004
Location: Manila/LA
Posts: 854
Likes (Received): 0

wow.. so it's a year late...
__________________
Support the Skyway Project Phases 2 and 3!

ANIMO LA SALLE!
federal no está en línea   Reply With Quote
Old October 1st, 2004, 02:05 PM   #17
renell
Here Since 2002
 
renell's Avatar
 
Join Date: Sep 2002
Location: Sydney/Metro Manila
Posts: 6,939
Likes (Received): 4

Quote:
Originally Posted by federal
wow.. so it's a year late...
most pinoy gov't projects are man,
__________________
dafuq I've been here ten years?!
renell no está en línea   Reply With Quote
Old October 2nd, 2004, 09:33 AM   #18
mysaong03
amteurprocrastin8r
 
mysaong03's Avatar
 
Join Date: Apr 2004
Posts: 374
Likes (Received): 0

so pag natapos to, that means this would be the longest expressway in the country, taget finishing date is late 2007
mysaong03 no está en línea   Reply With Quote
Old October 2nd, 2004, 01:53 PM   #19
renell
Here Since 2002
 
renell's Avatar
 
Join Date: Sep 2002
Location: Sydney/Metro Manila
Posts: 6,939
Likes (Received): 4

yeah, it would be, unless NLEX or the SLEX+STAR connection extends.
__________________
dafuq I've been here ten years?!
renell no está en línea   Reply With Quote
Old October 4th, 2004, 05:22 AM   #20
muzic_lover2981
jon
 
Join Date: Jul 2004
Location: angeles city
Posts: 69
Likes (Received): 7

MANILA, PHILIPPINES | Monday, October 4, 2004


Q&A
SBMA chairman Francisco Licuanan and BCDA CEO Rufo Colayco speak on
Subic-Clark-Tarlac Expressway Project
Creating growth opportunities for RP
"If you go in with the attitude, 'I want to help something of significant value happen to improve this country,' then you also have to say at the same time that you are prepared to take all the nonsense that comes with it."


Before joining the Senate in 1992, President Gloria Macapagal-Arroyo, then with the Department of Trade and Industry, initiated the concept of developing Central and Northern Luzon. Today, that initiative is among her government's main objectives. And leading its pursuit are two former business executives who have distinguished themselves in the fields of investments and property development: Francisco Licuanan, formerly with Ayala Land; and Rufo Colayco, who worked both with SGV&Co. as well as the Kuok group. BusinessWorld sat recently with both men to discuss the anchor of the government's global gateway initiative -- the PhP21-billion Subic-Clark-Tarlac Expressway Project.

BusinessWorld (BW): How did this entire endeavor evolve? How was it conceptualized? How did it come about?


BCDA CEO Rufo Colayco (RC): First of all, I'm sure I'm not the first one to talk about this. Vic Lim (BCDA chief during the Ramos Administration), way back, was already talking about creating a corridor. It's just that if you work in government, and you work day to day, the big ideas, the big picture, tend to get set aside. Days become weeks, and months, and finally years, and then people look back and say how come we never did anything about that.

When (former President Estrada) put me and Felicito Payumo in Clark and Subic in 1998, it occurred to me that the way things have gone before, probably partially because of the personalities, tended to be thinking more in terms of the greater SubicIt tended to be Subic-centric or Olongapo-centric. It occurred to me that with the way things were going, the result would be what I call economic enclave sa super-jumbo PEZA -- two of them in effect (Clark and Subic). Instead of the 500 hectares that Ayala Land would build into a technopark, we are talking about 5,000 hectares and, essentially, you attract investments into that place, jobs get created there, and then people go there to work.


Rufo Colayco

But I thought, what if we look at all of Central Luzon as the target, and think of these two (Subic and Clark) as anchors that we will link...I said, why don't we link Clark and Subic first and create a convergence of air and sea transport, which if you handle right, becomes a very viable logistical asset. But more importantly, you orient the whole development to Central Luzon itself.

When you look at Central Luzon, if you connect the provinces to each other, you'll have an explosive mixture. (Mr. Licuanan) is very familiar with this...I talked to him about it. He's not walking into this thing new. He's been thinking about this himself. Even at that time, I could sense that he was one of the few guys who sort of thought it made sense.

The idea is you have this huge agricultural plain in Nueva Ecija and Tarlac, which is underutilized. If it is irrigated and served with roads better than what we have now, it can probably feed most of the Philippines, with some export.

And it is just north of Metro Manila, which is the natural market. And to the west of it will be this corridor that we are creating when we link Clark and Subic.

So why not just link that new corridor, by linking Clark and Subic to the rest of the plain? Why don't Clark, Subic, and BCDA get together and create this backbone infrastructure for the region?

We have a natural deep water harbor in Subic, which will be the gateway for Central Luzon to connect directly with the international market, rather than go through the bottleneck in Manila.

You have a strategically located airport near to it (in Clark).

And the two are strategically located with respect to the rest of the region, the central plains.

Tourism is there, too. You create that (Subic-Clark corridor) and I think it's one of those places where you get the big bang to the buck: Two plus two equals four and a half or five.

We've been pursuing this in the last year and a half, we conducted extensive talks in Central Luzon to get ground level enthusiasm for it, which is there now.

And then all of the sudden (Mr. Licuanan) became available when he retired. I think this is the most positive thing that could have happened. With (Mr. Licuanan) on board, we have full support (of the President).


BW: (to Mr. Licuanan) To a large extent then, the timing of your retirement (from Ayala Corp. recently) was crucial?


Francisco Licuanan (FL): Well, I was lucky...


BW: My understanding originally was that the Subic-Clark hub was an attempt to decongest Metro Manila?


RC: That was my idea, but we have to find out what Mr. Licuanan thinks. He's in charge. My original concept was that our industries have died. About 10 million Filipinos have to find work offshore because there are no more jobs here because we are so uncompetitive, with our inefficiency of our choking up Manila. Other countries like China can produce goods more cheaply and efficiently than we can.

We have to give ourselves a break and so we have to create a better, more competitive environment, so that our private sector can have a chance to fight. That's the primary thing as far as I was concerned.

The secondary thing is that, in the process, we will create a logistics corridor or hub. We can do some transshipment business like Singapore does.

The primary is to enable Philippine domestic business to become competitive, and secondarily, to have a hub that will have some transshipment business.


FL: The way that you become competitive is you create a very efficient logistics environment. In the process you, become a regional hub, and you need volume, so you got to get both.


BW: How optimistic are you that volume will come?


FL: We have not gotten to the point of quantifying it. I think we all know that we are up against something very difficult, which is China.

One of the things we are going to have to do is to find what particular areas we can complement, not compete, with China. China will be China. They will be the more dominant force in this region.

And in fact, it's a national problem, not only a Central Luzon problem. The Philippines will have to find its niche in this new regional order that China will dominate.


BW: Can we say then that the idea of the Subic-Clark hub, to be created with the help of the expressway project linking them, is an attempt to highlight the best of what the Philippines can offer?


FL: We can say that, in effect, in the end, government has to be an enabler. Government can provide infrastructure, and hopefully not just the hard infrastructure but also what we call the soft infrastructure -- the policy environment, etc. In the end, it's the private sector that will find the opportunities. Thinking further ahead, we can help with research and things like that, to help find the opportunities.


BW: But how sure are we this particular project, the hub with the Subic-Clark expressway, will not suffer the same fate as many other government projects that were not implemented?


FL: Well, first of all, nothing is sure. We just have to look at what the chances are. I can refer only to my personal reaction when I was approached (to lead the Subic-Clark-Tarlac tollway project) and my feeling is that this is one time when we have a chance of succeeding.

First of all, the basic infrastructure, the largest elements of the physical infrastructure, are either there or at least have funding. The port (in Subic), and you got funding to improve the container port. You have the airport (in Clark); at least you've got the runways. They are going to have the radar, at least they have it funded. Then the road (tollway), which at that time I thought was already a go, is also funded.

So, at the very least, the largest elements of the infrastructure are already there or have a chance of being there... There are a lot of other elements we have to put together.


BW: It's just a matter of linking these elements ...


FL: There's a lot, lot, lot of hard work to do. But at least some things that would normally be impossible are already there...rather than you build a new port, build a new airport, walang pag-asa yun [that would be a waste of already-available/existing opportunities].


BW: A number of controversies hounded the tollway project only recently. Is it finally going to push through?


FL: (To Mr. Colayco) Rufo, you have the letter saying it's approved?


RC: What I have is a certification (from the National Ecomic and Development Authority, or NEDA) that it is approved. I made sure that we got that.

When we weren't in government, we knew that it was going to be like this. It's frustrating, but if you won't accept it as a reality, then you leave and you don't do anything.


BW: (To Mr. Colayco) Has it (government work in Clark and then BCDA) been frustrating for you?


RC: That's putting it mildly (laughter). If you take the attitude "I'm not going to take any of this nonsense," then you're only option is to leave. And if you leave, how do you get anything done? If you go in with the attitude "I want to help something of significant value happen to improve this country," then you also have to say at the same time that you are prepared to take all the nonsense that comes with it. If you end up leaving, talo ka, di ba [you would have been beaten, right]? You didn't get anything done.


BW: Was all the nonsense you had faced within your expectations when you joined the government?


RC: No, far worse than I have imagined really, and far more devious, far more determined. You cannot imagine some of the stuff I had to go through.


BW: (to Mr. Licuanan) Hearing this from somebody who has been in government for some time, what are your expectations in terms of frustrations?


FL: You'll never know how bad it is until you are actually in it. I can talk theoretically; I've seen a little.


RC: (to Mr. Licuanan) You ain't seen nothing yet.


Francisco Licuanan


FL: I'm psychologically preparing myself. I'm starting with the premise that it's not going to be smooth-sailing. It's not going to be, I don't expect it to be. If it gets beyond my level of tolerance, I will surrender. But I have a high level of tolerance. Like Rufo, I'm a very stubborn guy.


RC: That's the irony of it I think in many circles, Mr. Licuanan and I have in some ways similar reputations: stubborn, brusko, impatient...


BW: Did you ever work together previously?


RC: No, but only because we were running our respective responsibilities. He was with Ayala and I was with SGV and then Kuok.

People don't understand these things very well: we might get very upset even with each other sometimes, but its never personal. We are just trying to get something done. We may disagree on how it should be done, but at the end of the day we will both yield to the fundamental principle that we will get it done.


BW: As far as the Subic-Clark-Tarlac Expressway Project is concerned, is there a meeting of the minds between you two on how it should be implemented?


FL: Yes.


RC:I would say, there is a very high degree of congruence. I'm sure that we will have different approaches, but the fundamental thing is there.


BW: With your extensive experience in the private sector, what do you think you'd be able to bring to the table?


RC: At the end of the day, Mr. Licuanan is the one who is going to be the leader. If I get to stay in BCDA, I have defined BCDA's role going to the future, being principally the provider of the highway backbone.

First of all, to link Clark to Subic and then to link two of them to the rest of the region.
Second phase is to go further north and to go further east. North is up to La Union, east is up to Palayan City, which is a stone's throw from Dinggalan Bay facing the Pacific.
It's more than just talk because that second leg going north is already with NEDA for evaluation staff level

So if I get to stay in BCDA to run it, it's going to be quite straightforward -- I would build those highways. I would have to link everyone to its grand design. And to the extent that we may have to modify what were doing, to fit in with what is being donewe'll do that.


FL: What I hope to put in is try to unify the approaches of the three institutions (Subic, Clark, and BCDA) because as Rufo was saying, until this concept came along they really had their own different objectives.

Theoretically, the objectives are now somewhat unified, but that's in theory. Now we have to get the management all working together in that direction. And that's still a very broad objective. We've got to thresh out that objective in terms of substrategies and action plans.

At the broadest level, I'm just supposed to be working on strategies, plans, coordinating. I'm supposed to step in whenever the things happening on the ground are not congruent with the strategy.

So to me, that's my major role: getting an organized and consistent approach to the broader objectives among the three management, and that may involve trying to influence the management.


BW: Obviously, this hub will succeed only to the extent that investments will come in and investors will agree to help out in the project. My understanding is that JBIC will finance only the expressway itself and the seaport. But everything else in terms of infrastructure and communication will have to come from investments outside.


FL: The service infrastructure will be market-driven. If we can create the basic investments in manufacturing and service, then the guys that can provide services to them will come.

The problem is this usual chicken-and-egg thing: can you get the volume of demand so that they can invest?

If we talk about telecommunications, there is basic telecommunication for the region as it is, so I have no doubt that PLDT, Globe, and others will be willing to provide that. We have some issues with regard to policy structure and I would have to begin to understand and solve that. Energy is a major issue, a country issue.


BW: Has any particular group expressed interest in joining this project or investing in the hub?


RC: Iran. In fact, they're doing it all over the country, but they are very much aware of this initiative.


FL: I don't know the details, and this is not something I've gotten involved in yet, but I know (Clark Development Corporation chairman) Roy Navarro and his group are in deep discussions with Iran and they are about to tell me where they are.


BW: Considering your previous involvements in the private sector (Mr. Licuanan with Ayala Corp. and Mr. Colayco with SGV and Kuok), if you would find yourself in situation that you would have to decide on a particular issue that would involve your former companies, how do you intend to go about it?


RC: If I could abstain from participating in the decision, I would. But how do you do that if you are chief executive of the entity doing it? So you just have to be careful when you conduct those transactions Just because you happen to have an association with somebody does not mean that you will necessarily have a bias in dealing with him.


FL: There's reality and there's appearance. I have no problems, knowing that I would be unbiased vis-a-vis Ayala. I think I did as well by them as they did by me. So it's not like I really owe them in that sense, but then there's appearance I can abstain or I might end up saying, pwede ba, huwag ninyo akong ipitin [please spare me of this awkward situation]...go somewhere else.


RC: Especially the way Philippine government is, it's not as big an issue as it appears. I'm talking about things like discrete transactions. Maybe its more touchy.

In fact...( to Mr. Licuanan) you know frankly, I think the logical platform from which you should pursue this thing is as chairman of BCDA. Setting aside the issue whether that's right or not, there's a big problem with that. At least for the first year, because he was running Ayala Land just a few weeks ago, which is now partners with BCDA (at Fort Bonifacio)... So we end up attending FBDC (Fort Bonifacio Development Corp.) board meetings within weeks after he left.

Now that wasn't a problem, whether at least from a perception viewpoint, although that's touchy. Because that's more private, less subject to scrutiny.

But if you talk about acquiring, for example, the right to operate a highway or the right to develop a large tract of land as an industrial thing, that can be conducted very visibly in an arm's length manner.


BW: Any expectation on how much value your project is going to create?


FL: No numbers. It's not that I don't believe them (NEDA projections), but they are so large that I don't want to think about them. No numbers at the moment.


BW: What is your timetable in terms of government service?


RC: I've been saying everywhere I've gone, if we get nothing else more than building the infrastructure, building the road, building the seaport, the airport...to me the seaport and the road are the more important things. Then we would have accomplished something of great value.

To give you a sense of what I mean, just try to imagine for a moment what it would be like today if 30 years ago the north and south expressways were not built. Can you imagine? Nothing would have happened.

Same thing here. If we get a fresh seaport to get rid of the nonsense in Metro Manila ports, and sufficient highway for the rest of the region, that in itself has to create a hell of a lot of value, making things that would not always happen...

The other part is we could create institutions institutions that will not only enhance but probably mobilize those pieces of infrastructure far more effectively, generating growth and development.


BW: Are we talking about creating a new agency from the existing agencies?


FL: I don't know. There was a grand plan, which I guess is still there, to merge everything into one. I have my reservations about that, partially because I don't think it will ever get done.

Maybe we are talking three or four institutions. We are talking of maybe the airport office, the seaport...and then the road infrastructure is another institution.

But I guess what we have to develop is the coordinating role, the developmental role. In that context, we still have not talked about the role of other agencies, the regional development council, for example.


RC: If I could build the highway all the way to La Union, and all the way to Palayan, I'm done. (To Mr. Licuanan) But your role in a way is more multi-faceted. Once you brought in the strategic partners with their know-how, their market links, that's when you can probably step off and say some younger guy would take over this, I'm done.


BW: Do you have any strategic investors in line? Groups you would like to invite?


FL: We can approach them, but you know we've got to have something to sell.


BW: So are we getting started on the tollway in January?


RC: I think so.


BW: Then can we say with some degree of confidence that all issues and controversies have been resolved?


FL: I think the President realizes that it is not a viable alternative to re-bid. She loses time and probably lose money. I think she has made that clear.


BW: (To Mr. Colayco) How long have you been in government?


RC: Eighteen months first round (at Clark). This one (at BCDA) is longer, from March 2002, so 30 months...


BW: Are you staying on?


RC: Well, I'm in a hold-over capacity because I am serving the unfinished term of Babes Singson. So the President would have to reappoint me for me to stay on.

And I don't think she has decided to. My term ended last July 28, so hold-over until now. I think as of now, she is inclined to appoint someone else to do my job.

The visioning now will come from Mr. Licuanan. As I mentioned earlier, the role of BCDA will be relatively straightforward: build the highway.


FL: BCDA was able to structure itself to build the second part. I think Phase One is going to be straightforward. If someone else takes over, he may need to catch up because a lot of the work will be the financial packing: we have to provide the counterpart money. BCDA has some resources, but you have to shape it in such a way that you can maximize it.


BW: What does BCDA hold now? How much are we talking about?


RC: In terms of land, the remaining land Fort Bonifacio consists principally of eight and a half hectares inside the Global City, and another five or four just north of it behind Pricesmart. That's virtually it. And there's the 45% interest share in Fort Bonifacio Development Corp. That's very very valuable, specially now that Ayala Land is... in FBDC as well.

Elsewhere, there are bits and pieces of military land along Roxas Boulevard, Libis BCDA owns 4,400 hectares in Clark that land cannot be disposed of without congressional approval. Leases only. That applies to Subic as well.


BW: (To Mr. Licuanan) What do you expect to do in SBMA?


FL: I'm supposed to be at the planning and strategy level I hope I will not get involved in anti-smuggling...I mean, I will do something to some extent... but that's why the President said she was sending Joey Calimlim there. We have to back up Joey, but surely he is he guy to do it. We have to work on the institutional framework because, actually, the position he is appointed to is a position that won't allow him to do his job. We have to sort it out. Within SBMA, we will give him the authority he needs.


BW: What about Alredo Antonio?


FL: He is the CEO. In SBMA, I'm simply presiding officer. In practice we work as a team, and we talk about things. He is the CEO.


BW: How about BCDA, who is the new chairman?


FL: Mr. Rojas is the chairman, replacing Mr. Padernal. He once was with RCBC, but he left quite a while ago. So he is a banker by profession. Funny, they are all RCBC (SBMA's Antonio, Clark's Navarro, and BCDA's Rojas), but Mr. Yuchengco had nothing to do with their appointments.

I was with BanCom previously, of Sixto Roxas. I left and joined Ayala in 1979. Essentially, my training was in finance. But work at Ayala Land was beyond that. I was general manager.


BW: I am keeping my fingers crossed that this tollway project will fly.


FL: I think we have a very very high probability that this road will materialize. Extremely high.


RC: It will start in Subic where the Tipo road ends, and then go down hills, mountains, Dinalupihan follows foot of mountain and gets into Clark through the friendship gate through Angeles, and then it will go out to Mabalacat then north to Tarlac.

It's a new alignment, but the road going to Clark will be a parallel to McArthur.


FL: Almost perpendicular, not quite parallel to the Olongapo-Gapan road.




RC: When you get past Dau later on, you will ses a ramp that will take you across (the highway) to Clark over McArthur. Effectively, the continuation of the north express will be the Subic-Clark-Tarlac tollway. Then you get on the Clark-Tarlac portion of the Subic-Clark-Tarlac.


BW: (To Mr. Licuanan) With all your years in Ayala, did you ever get to work on a highway?


FL: No. The Southrail -- we were serious about it. But it was affected by the peso devaluation and the Asian crisis. When we were putting it together, the exchange was PhP38.50.


BW: Does it really make sense to get into rail?


FL: Truth of the matter is, no railroad has ever made money, except when they have major land speculation

But I think what we need is a change in mindset in government. Why are we willing to subsidize by using government funds...to build roads without being willing to build railroads? We should look at it the same way.


BW: For the Subic-Clark-Tarlac toll fees, how much are we talking about?


RC: We will be at par with the North Luzon. Running probably a bit behind in terms of rate.


BW: When can we expect the new Subic-Clark-Tarlac tollroad to open?


RC: July 2007.


BW: Do you think that's feasible?


FL: Well, if Mr. Colayco gets it awarded by January, the rest is construction. Right now, he is negotiating (with contractors) to bring the cost down.

There were gaps in the procedures previously, and the price went up, so there has to be some evaluation of whether it should continue or not.


BW: Is PhP21 billion the final cost?


RC: We are not there yet.


FL: We are approved for that.


RC: JBIC is providing a ¥39-billion civil works loan, which at current exchange rate is PhP20 billion. Now we need another PhP1 billion.

We are in discussion (with contractors) and they are cooperating. The tollroad will be 94.5 kilometers long.


FL: If you look at it, the profitable part will be Clark-Tarlac portion at least in the short term, because the traffic is there. The Subic-Clark portion is really a missionary route, but eventually it may be more profitable. But as of now, the existing traffic in the north is very evident.


BW: The Ayala group has worked with many Singapore businesses. Do you intend to invite them to this project?


FL: We intend to invite them because they are a natural candidate. They also have a basic country decision to go out and expand.


BW: How about the Chinese?


RC: My personal guess is that for the typical mainland Chinese entrepreneurs, there's so much opportunity back home that he'll be focused there for a while. The Taiwanese are different, though. And there's so much land relation between Taiwanese and Filipinos.



BW: What types of investments do you expect to come in once the Subic-Clark tollroad is ready?


FL: At this point, we don't have the numbers. It's very early. In effect...you put in the infrastructure, you make it very efficient...immediately the statistics will start pouring in. That makes it more economical for other investors to locate there other than other areas in the Philippines. Once investors start coming in, then you can promote your tourism.


RC: Even tourism is partially driven by infrastructure. That's why Boracay is never going to be that big, because access is bad and it's not big enough for you to spend on the access. Sa Thailand, they chose a couple of spots they could build infrastructure and allowed the private sector to take over.


BW: So main objective now is to get the road done?


RC: The road, electricity, water -- that is the one bad thing about Central Luzon. The mountains were denuded so long ago and then the ground water has been extracted so aggressively.


BW: What policy changes are we looking at to make this hub project work?


RC: We're looking at changes in the air policy. That becomes necessary. At least that's the major one.


FL: One of the problems is the regulatory problem of taxation...and the exemption and tax incentives. That's a big issue. There's a lot more, but these are the two most important.


RC: To some degree, there is also this issue of ownership of utilities. For example, we're now going to be looking for operations and maintenance contractors for the road. And the law says that entity has to be Filipino, at least 50%. We prevent capital from moving freely into the capital-intensive things that are needed to develop the economy.


BW: How is the financing?


RC: The 40-year loan, 10 years grace on principal. We'll pay the interest during the first 10 years. And the interest rate is 0.95%. The guarantee fee is higher than the interest per year.

But the one that would apply to the extension to La Union is better. The interest rate would be better: instead of 0.95%. it will be half a percent.

The thing that we hope will become more and more recognized is the huge potential that this (Subic-Clark hub) initiative brings. As we said, there's no other place where we can get such significant results in such quick time with excellent return in investments for the country.

Because all the elements for success are there: the proximity to the domestic market, and at the same time the instrument by which to decongest that market. It's all there, you have agriculture, tourism, manufacturing, manpower.


BW: Good luck to you, gentlemen.


FL: That's what I tell my wife.
muzic_lover2981 no está en línea   Reply With Quote


Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 08:23 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Feedback Buttons provided by Advanced Post Thanks / Like v3.2.5 (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu