Arroyo steps into row over Subic-Clark Expressway project
CLARK FREEPORT -- President Gloria Macapagal-Arroyo has approved the recommendation of Secretary Edgardo Pamintuan to give a Japanese contractor at least four months more to finish the Bataan-Pampanga portion of the national flagship project Subic-Clark-Tarlac Expressway in Central Luzon.
Ms Arroyo’s approval was contained in a confidential July 25 memorandum, a copy given by a Malacañang source to the Philippine Daily Inquirer showed.
Pamintuan, chair of the Subic-Clark Alliance for Development Council and Luzon Urban Beltway super region, confirmed on Friday Ms Arroyo’s approval of his recommendation to extend the deadline of the Kajima Corp., Obayashi Corp., JFE Engineering Corp. and Mitsubishi Heavy Industries Ltd. (KOJM) Joint Venture starting Nov. 15.
“She has officially approved the deadline extension, which she has initially announced during the LUB conference in Subic on July 19,” Pamintuan said.
In approving it, Ms Arroyo ended the negotiations between the Bases Conversion Development Authority and the KOJM. The talks, which began in April when KOJM first sought a 383-day extension, had dragged for three months.
Pamintuan said the BCDA would have to “take action now.”
The recommendation said the extension would have “no direct cost to the government” -- a term that kept up with the BCDA’s position.
Asked if the government would start penalizing the KOJM with at least P5.3 million for every day of delay as stated in the contract, Pamintuan said: “My understanding is that they will not be penalized, only after the expiration of the four-month extension.”
“By granting the four-month extension, KOJM’s completion date is adjusted, current negative slippage is eliminated. No liquidated damages to be charged,” he said.
The KOJM has worked to bring its slippage or the delay in the work schedule to below 15 percent in the 50-km side of the 94-km toll road, it was learned.
The BCDA has required the KOJM to submit a detailed work plan for the four-month deadline extension it requested three weeks ago.
The relief of KOJM project manager, Masato Otsubo, which international consultants have recommended, has been “withdrawn,” it was learned.
Talks for deadline extensions began when the KOJM and the other Japanese contractor, the Hazama-Taisei-Nippon Steel (HTN) Joint Venture, reported incurring 2,408 and 457 days of delay, respectively, due mainly to right-of-way problems or access to sites on which the P21-billion Japanese-funded highway would be built.
Inquirer sources said the project went awry when some BCDA officials connived with real estate brokers to increase the prices of land and as other BCDA executives allegedly mulcted the two major contractors and their Filipino sub-contractors.
According to the original contract, the HTN is supposed to finish the 44-km Pampanga-Tarlac side in August this year. The KOJM’s adjusted deadline will be in March next year.
The BCDA has been reviewing its terms of reference for a third bidding for the operations and management of the toll way.
BCDA president Narciso Abaya said the agency would not operate and manage the toll way, contrary to the apprehension of the multi-sectoral group Advocacy for the Development of Central Luzon.
“We are also exploring an interim arrangement for a third party to operate in case the third bidding is not finished before the scheduled opening. But the operations and management will be privatized,” Abaya told the Inquirer last week.
“We just want to be sure that we maximize our revenues from the toll expressway. After all it is the BCDA that will pay for the loan used to finance this project,” Abaya said. Tonette Orejas, Inquirer Central Luzon
Ms Arroyo’s approval was contained in a confidential July 25 memorandum, a copy given by a Malacañang source to the Philippine Daily Inquirer showed.
Pamintuan, chair of the Subic-Clark Alliance for Development Council and Luzon Urban Beltway super region, confirmed on Friday Ms Arroyo’s approval of his recommendation to extend the deadline of the Kajima Corp., Obayashi Corp., JFE Engineering Corp. and Mitsubishi Heavy Industries Ltd. (KOJM) Joint Venture starting Nov. 15.
“She has officially approved the deadline extension, which she has initially announced during the LUB conference in Subic on July 19,” Pamintuan said.
In approving it, Ms Arroyo ended the negotiations between the Bases Conversion Development Authority and the KOJM. The talks, which began in April when KOJM first sought a 383-day extension, had dragged for three months.
Pamintuan said the BCDA would have to “take action now.”
The recommendation said the extension would have “no direct cost to the government” -- a term that kept up with the BCDA’s position.
Asked if the government would start penalizing the KOJM with at least P5.3 million for every day of delay as stated in the contract, Pamintuan said: “My understanding is that they will not be penalized, only after the expiration of the four-month extension.”
“By granting the four-month extension, KOJM’s completion date is adjusted, current negative slippage is eliminated. No liquidated damages to be charged,” he said.
The KOJM has worked to bring its slippage or the delay in the work schedule to below 15 percent in the 50-km side of the 94-km toll road, it was learned.
The BCDA has required the KOJM to submit a detailed work plan for the four-month deadline extension it requested three weeks ago.
The relief of KOJM project manager, Masato Otsubo, which international consultants have recommended, has been “withdrawn,” it was learned.
Talks for deadline extensions began when the KOJM and the other Japanese contractor, the Hazama-Taisei-Nippon Steel (HTN) Joint Venture, reported incurring 2,408 and 457 days of delay, respectively, due mainly to right-of-way problems or access to sites on which the P21-billion Japanese-funded highway would be built.
Inquirer sources said the project went awry when some BCDA officials connived with real estate brokers to increase the prices of land and as other BCDA executives allegedly mulcted the two major contractors and their Filipino sub-contractors.
According to the original contract, the HTN is supposed to finish the 44-km Pampanga-Tarlac side in August this year. The KOJM’s adjusted deadline will be in March next year.
The BCDA has been reviewing its terms of reference for a third bidding for the operations and management of the toll way.
BCDA president Narciso Abaya said the agency would not operate and manage the toll way, contrary to the apprehension of the multi-sectoral group Advocacy for the Development of Central Luzon.
“We are also exploring an interim arrangement for a third party to operate in case the third bidding is not finished before the scheduled opening. But the operations and management will be privatized,” Abaya told the Inquirer last week.
“We just want to be sure that we maximize our revenues from the toll expressway. After all it is the BCDA that will pay for the loan used to finance this project,” Abaya said. Tonette Orejas, Inquirer Central Luzon
Labels: bcda, kajima, kojm, obayashi, subic clark expressway
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