SCTEX bidders failed

MNTC, Northlink fail in Sctex bid

THE Manila North Tollways Corp. (MNTC) and Northlink Toll Management Inc., the two remaining firms that submitted bids for the management of the Subic-Clark-Tarlac Expressway (SCTEx), have failed to meet the hurdles set by the Bases Conversion and Development Authority (BCDA) in the bidding’s terms of reference (TOR).

The BCDA, however, is still not declaring a failure of bidding as it gave the two companies a few days to submit their respective appeals, BCDA vice president Aileen Zosa said.

Northlink, an incorporated joint venture between San Miguel Corp. and Star Tollways Corp., was declared ineligible by the BCDA after it failed to comply with the technical requirements set in the TOR.

Northlink was given up to January 29 to file its protest.

MNTC, a subsidiary of Metro Pacific Investments Corp., on the other hand, was declared eligible after the technical phase.

Its financial bid was opened on January 25 in front of representatives from both MNTC and Northlink, members of BCDA’s Asset Disposition Program committee and a representative from the Commission on Audit.

However, the BCDA declared the financial bid of MNTC as “failed/noncomplying,” since it fell short of the minimum requirements as set in the TOR. MNTC still has up to February 1 to make an appeal.

“Both bidders were given a period of time to file their respective request for reconsideration and/or a protest as provided for under the TOR. Thus, the BCDA has not declared a failure of bidding,” Zosa said.

In a statement, the MNTC, the concessionaire and builder of the 93-kilometer North Luzon Expressway, said it is still considering its options.

But Rodrigo Franco, MNTC president and CEO, said having MNTC operate and maintain the SCTEx would facilitate its integration with Nlex, giving motorists greater benefits.

“MNTC will redesign and reconfigure certain toll plazas and the toll- collection systems to achieve full integration of the two expressways. Customers will discover an even more pleasurable and convenient travel experience,” he said.

Six firms originally expressed interest in operating and maintaining the SCTEx by purchasing the TOR, but only MNTC and Northlink proceeded with the bidding.

SCTEX Controversy being heard at the house

SCTEx controversy bigger than C-5, says Villar ally

by Carmela Fonbuena, abs-cbnNEWS.com/Newsbreak

The Aquino family should pay the government for the construction of the interchange in Hacienda Luisita, which is estimated to be worth around P170 million, an ally of Nacionalista Party (NP) standard-bearer Sen. Manuel Villar said.

At the continuation of the House oversight committee hearing Wednesday on alleged irregularities in the Subic Clark Tarlac Expressway (SCTEx), Cavite Rep. Jesus Crispin 'Boying' Remulla said the family of presidential survey frontrunner Benigno 'Noynoy' Aquino III should refund the government for the purchase of the allegedly overpriced right-of-way property for the SCTEx road project.

He claimed that regular government procedure mandates the landowner should give the property to the government at zero cost.

"Interchanges in private properties have to be paid for by the private property owners. He should donate the right-of-way. They [Aquinos] still have the industrial land," Remulla said.

Remulla also claimed that the SCTEx road controversy is "bigger" than the C-5 road extension project scandal against Villar.

"’Yong kay Villar, zonal value ang pinag-uusapan. Hindi overpriced. Dito may interchange pa. Ang laki ng kanilang pakinabang masyado," Remulla said.

No overprice, no payment needed

Sought for comment by abs-cbnNEWS.com/Newsbreak, Aquino's spokesman, Edwin Lacierda said the interchange "need not be paid because the contractors designed the Luisita toll to be the end point."

In a text message, he said the interchange was "supposed to promote commerce between Subic and the Luisita industrial zone corridor."

Lacierda also said Remulla has not presented evidence that the right-of-way property was overpriced.

"He has been mouthing overprice without proof. Government officials have already testified to the non-overpricing. This is not C-5," Lacierda said.

He said Remulla should not "divert the issue."

During Wednesday's hearing, retired Brig. Gen. Robert Gervacio, the Bases Conversion Development Authority (BCDA) program manager for SCTEx’s operational and support services, cleared Aquino of any wrongdoing in the project.

"Everything is aboveboard. There was no contact between BCDA and Senator Aquino," Gervacio said in response to questions raised by Akbayan Rep. Ana Theresia “Risa” Hontiveros, a guest senatorial candidate of the Liberal Party.

Extraordinary transaction?

Philippine National Construction Corp. President Maria Teresa Defensor on Wednesday's hearing testified that the government does not ordinarily pay private landowners for right-of-way properties in government projects because the private landowner presumably benefits from the construction of a national road.

Defensor also testified that the Toll Regulatory Board, which processes applications for interchanges in major road projects, does not normally pay for the construction of interchanges in private lands.

She said there's a process where private landowners apply for the construction of an interchange and, if approved, shoulder the full cost of construction. This is also because the value of the land will presumably increase, and the landowner benefits from the rise in property values resulting from the infrastructure project.

"Ang suwerte naman nila masyado. The value of the industrial land is now P1,000 per hectare because of the interchange," Remulla said.

The cost of the interchange built inside the Hacienda Luisita complex was shouldered by the government and funded through a loan from the Japan Bank and International Corp. It is a flagship project of President Gloria Arroyo.

Just lucky?

However, Bases Conversion and Development Authority (BCDA)-SCTEx project engineering chief retired general Eduardo Lena explained that the government paid for the construction of the interchange because it was part of the original plan for SCTEx.

The hearing failed to directly link Senator Aquino to the allegedly irregular transaction. The BCDA had negotiated with Senator Aquino's uncle, Pedro Cojuangco.

But Remulla said Senator Aquino should still be held accountable.

"It's the uncle. It's just one family you are dealing with. And he is a direct beneficiary. He cannot control his family. Patay malisya siya pag family ang involved. Pero nakinabang siya," he said.

Remulla added that it is also a taxpayers' issue because the people will shoulder the cost of the loan.

SCTEx controversy

The SCTex controversy began in November 2009 with Remulla's allegations that Senator Aquino's family benefited from the allegedly overpriced sale of the right-of-way property. The property was sold for P100 per hectare.

Remulla questioned it because the zonal value was only P8, he said.

The controversy has since branched out into several other allegations of irregularities such as:

-Senator Aquino's family allegedly failed to fairly distribute to the farmers their share in the sale of the right-of-way property;

-The contraction of the interchange inside the Hacienda Luisita was allegedly irregular;

-The Cojuangco family has allegedly not been paying government royalty fees for the quarrying activities inside Hacienda Luisita.

Remulla also revived calls for the Cojuangco family to distribute Hacienda Luisita to the farmers.

Remulla said there will be two to three more hearings on the controversy

BCDA to open new interchange at Subic-Clark-Tarlac tollway

SUBIC FREE PORT -- The Bases Conversion and Development Authority (BCDA) will open the Floridablanca interchange of the Subic-Clark-Tarlac Expressway (SCTEx) today.

At 94 kilometers, the Subic-Clark-Tarlac Expressway is the country’s longest tollway.

The state agency said this will be the eleventh interchange of the tollway, making it more accessible to motorists in Central Luzon.

In a statement, Robert C. Gervacio, BCDA program manager for operational support services and SCTEx spokesman, said the opening of the interchange would provide Floridablanca, the second-largest rice-producing town of Pampanga that is also noted for its sugar farms, with a more efficient way of transporting produce through the new interchange.

Motorists, meanwhile, will now have the option of passing through the traffic-free SCTEx instead of the old Porac-Floridablanca-Dinalupihan local road.

“Even residents of Angeles and Mabalacat should find the new interchange highly convenient,” Mr. Gervacio said.

The opening of the interchange is expected to further boost business growth and employment opportunities in the Central Luzon logistics hub, he added. Access to and from Floridablanca and its neighbo-ring municipalities, will now be faster and easier, he pointed out.

To prepare for the interchange’s opening and ensure that traffic will run smoothly, system tests with the assigned tellers were conducted, the SCTEx spokesman added.

Floridablanca, which is Spanish for “white flower,” also hosts the Basa Air Base of the Philippine Air Force.

The town is thickly populated and, thus, easing the movement of people and produce though the new interchange should be considered a boon for the locals, Mr. Gervacio said.

The Floridablanca interchange is a 96-hectare tollway facility located a little more than 33 kilometers from Subic’s Tipo Junction.

The state-owned SCTEx is a 94-kilometer tollway built to interconnect the Subic Bay Freeport Zone, the Clark Freeport Zone in Pampanga, and Central Technopark in Tarlac.

It is the longest expressway in the country with 11 interchanges, four major bridges, 29 minor bridges, 44 underpasses and 303 drainage culverts. -- R. Garcia

SBMA eyes P2-B fund for new economic zones

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) has proposed the creation of a P2-billion fund to enable the development of new economic zones near the Subic Bay Freeport and the Clark Freeport.

The proposal was made by SBMA Administrator Armand Arreza during a meeting with the Senate Committee on Government Corporations and Public Enterprises, chaired by Sen. Richard Gordon, and representatives of the Clark Development Corporation (CDC) and the Bases Conversion and Development Authority (BCDA).

Gordon, who has filed Senate Bill 0143, or the “3-2-1 Luzon Global Corridor Act of 2009”, earlier proposed the creation of new special economic zones in Luzon to optimize the three airports, two seaports, and one connecting highway and railway in the major ports of Manila, Subic, and Clark.

The bill also seeks to strengthen the power of the SBMA and CDC, giving them the mandate to develop nearby areas into new economic zones.

To speed up the process, Arreza then proposed the creation of a fund to develop new zones.

“If we want Subic and Clark to reach the level of Singapore, we will need investments the equivalent of either seven Texas Instruments or four Hanjins a year. But to start all these, we need to build roads first,” Arreza said.

Arreza recalled that when SBMA and CDC were formed, the primary intention was to create jobs for those affected by the eruption of Mt. Pinatubo in 1991 and the pullout of the U.S. military from Subic and Clark in 1992.

However, he pointed out that the business model that supports the growth of Subic and Clark “to a certain level, is very limited, as they rely primarily on leases or income from land, which is a finite resource.”

Arreza noted that to carry out their new mandate of developing nearby communities, Subic and Clark would require a tremendous amount of annual investments in the next 10 years to fund various public infrastructures, such as roads, water and sewerage systems, as well as technical schools that would help reduce skills mismatch.

He also stressed that an eco-metric study made by the SBMA showed that Vietnam and China invested anywhere between 7-8 percent of their annual gross domestic product in infrastructure to boost their edge as investment sites.

In contrast, the Philippines spends only 3 percent of its GDP for the same purpose, Arreza added.

Responding to Arreza’s proposal, Gordon said he would file a bill that would set aside part of the taxes collected by SBMA and CDC in the next 20 years to develop more eco-zones in their areas.

Subic toll road auction set

State-owned Bases Conversion and Development Authority is now bidding the contract to operate the Subic-Clark-Tarlac Expressway at a floor price of P38.9 billion, payable over the thirty-three-and-a-half-year life of the concession.

“BCDA intends to select a private sector partner for the management, operations and maintenance of the SCTEx,” said BCDA in a published notice.

BCDA said it would form a joint venture with the future operator of the 94-kilometer toll road to augment its funds on the face of significant debt service payments starting in 2011. At least P1.2 billion in BCDA debt is due by that year.

The agency said the bid price is payable in semi-annual leases for thirty-three-and-a-half years at a constant exchange rate of two Japanese yen to one peso.

The amount will cover the loan and financing charges of the Finance Department.

The auction notice said the private sector partner would be responsible for the operational funding requirements for the toll road, including insurance and provision for services such as management, toll collection, traffic safety and maintenance.

The winning bidder will also provide BCDA a semi-annual concession fee amounting to the peso equivalent of the yen-denominated loan from the Japan International Cooperation Agency and financing charges payable to the agency 10 days prior to due dates, or 20 percent of the audited gross toll revenues, whichever is higher.

BCDA said it would furnish the terms of reference to prospective bidders from Oct. 26 to Nov. 6 upon payment of a non-refundable fee of P250,000 in cash.

The agency will hold a pre-bid conference on Nov. 10 at the BCDA corporate center to discuss the terms and other issues that may be raised by the prospective bidders.

Victor Zablan, BCDA vice president for finance services group, said earlier that BCDA needed a private sector partner to improve the financial viability of the toll project, which would start servicing its P26-billion debt by 2011.

The agency has been looking at several options to shore up its finances. It needs to raise between P950 million and P1 billion on the first year of payment on its loan amortization plus interest.

BCDA has secured a P19-billion loan from Jica to bankroll the construction of the toll road. It signed an additional supplemental loan of P7 billion to finance the construction of interchanges along the expressway and escalation costs. by Elaine R. Alanguilan - Manila Standard

Gordon bill on Subic, Clark gains support

SUBIC BAY FREEPORT -- A proposal made by Senator Richard Gordon allowing the Subic Bay Metropolitan Authority (SBMA) and the Clark Development Corporation (CDC) to expand their horizons by developing neighboring areas has gained momentum during committee deliberations last Wednesday.

Gordon, who heads the Senate Committee on Government Corporations and Public Enterprises, received assurances from national government agencies, government corporations and local government units (LGUs) that they would support development thrusts in the Subic-Clark growth corridor as envisioned in Gordon’s bill.

The agencies included SBMA and CDC, Bases Conversion and Development Authority (BCDA), Philippine Ports Authority (PPA), Department of Finance (DoF), and the Philippine National Railways (PNR).

Representatives from the provincial governments of Zambales and Bataan likewise attended the hearing and expressed support for the proposal.

According to Gordon, Senate Bill No. 143 seeks to maximize the vision of the Subic-Clark growth corridor to decongest Manila and open up more livelihood opportunities in areas between the Subic, Clark and Manila, as well as along the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx). By JONAS REYES - Manila Bulletin

BCDA speeds up repair works on SCTEX Clark-Tarlac portion

The Bases Conversion and Development Authority (BCDA) Tuesday said its field workers are rushing the completion of rectification jobs on certain portions of the Clark-Tarlac segment of the Subic-Clark-Tarlac Expressway (SCTEX).

“BCDA issued this advisory to inform motorists about the presence of heavy equipment in some spots of the SCTEX that might have posed a bit of inconvenience among the motorists,” said Robert Gervacio, program manager for operational support services and spokesman.

Gervacio explained that the repair and rectification measures were being undertaken at no extra cost to the government-run company because the toll road project “is still within the warranty period.”

“Our agreement with the contractors includes a warranty clause where the road builders are under obligation to implement repairs of BCDA-identified defects at no cost to BCDA,” he said.

The bottom line, according to Gervacio, is to ensure that the quality and integrity of the SCTEX, the country’s newest and longest toll road at 93.7 kilometers, is well preserved “for the overall safety of motorists and the public in general.”

Gervacio added that no less than Japan-based General Manager Haruki Torii of Hazama Corporation — the Japanese main contractor for the 43.27-km Clark-Tarlac Segment of the SCTEX, committed to BCDA President Narciso Abaya during a recent courtesy call that the rectification works will be completed by the end of August.

At the same time, the BCDA disclosed that more roadside signages will soon be installed in vital segments of the SCTEX, particularly at the Matatalahib-Maliwalo portion.

“We have always been sensitive and appreciative of feedbacks from the public insofar as our projects are concerned, with the SCTEX being our single largest project to date,” the BCDA said.

--Manila Bulletin

Ombudsman to probe BCDA execs, contractor

THE Office of the Ombudsman has found sufficient basis to proceed with its investigation of officials of the Bases Conversion Development Authority (BCDA) and the Japanese contractor Hazama-Taisei- Nippon Steel Joint Venture (HTN JV) in connection with the controversial P30-billion Subic-Clark-Tarlac Expressway (SCTEx) project.

Aleu Amante, OIC-director, PIAB-C, in a ruling dated June 11, 2009, asked the respondents to file their counter-affidavits and their own evidence within 10 days upon receipt of the order.

Named respondents were Gen. Narciso Abaya (ret.), BCDA president and CEO, lawyer Arnel Paciano Casanova, BCDA legal counsel and Maj. Gen Eduardo Lena (ret.), program manager for engineering and construction.

Also asked to give their sides were Japanese nationals Tadahiko Kajima, Makota Yoshida, Yoichi Inoue, Kunio Kimata and Tsunemi Nagata, court records revealed.

The case stemmed from the charges filed in February by Armando de Rossi, president and CEO of Construction Management and Consultancy Asia, Inc., (CMCAI), against the BCDA officials for alleged violation of RA 3019, or the Anti-Graft and Corrupt Practices Act.

Also included in the charge sheet were the earlier mentioned Japanese officials of Hazama-Taisei-Nippon Steel Joint Venture (HTN JV), one of two Japanese contractors of the 97-kilometer expressway project.

The respondents’ failure to submit their counter-affidavit shall be deemed a waiver and the proceeding shall continue according to existing rules, the Ombudsman said in the ruling.

In his complaint, De Rossi claimed HTN JV in complicity with BCDA officials, led by Abaya, failed to settle its obligation with his firm amounting to P59.280 million, representing professional and consultancy fees.

De Rossi claimed his engagement with HTN JV which started even prior to the actual bidding and award of the project resulted in the successful participation of the company in the multi-billion project.

He added that he provided the Japanese firm “valuable information” ranging from contracting procedure, design and scope of the competition to cost and quality estimates of the project. By: Paul M. Gutierrez - Journal online

San Miguel willing to buy majority stake in Subic-Clark expressway ‘if available’

AFTER DIPPING its hands into power, oil, telecommunication, and banks, food and beverage giant San Miguel Corp. is eager to add infrastructure in its diversified portfolio.

"Yes, if available," San Miguel President Ramon S. Ang said when asked if his firm was interested to acquire a majority stake in the government-owned tollway from Subic to Tarlac.

On Wednesday, San Miguel joined Metro Pacific Tollways Corp. in expressing interest to acquire a stake in the Subic-Clark Tarlac Expressway from the Bases Conversion Development Authority (BCDA).

The BCDA however has denied receiving any proposal, adding that it has yet to finish the terms of reference that will allow the agency to give the winning bidder a long-term contract to operate and maintain the expressway. The four-lane divided highway is expected to spur development in Central Luzon by connecting the Subic Freeport and Special Economic Zone, the Clark Freeport and Special Economic Zone, and the Central Techno Park in Tarlac.

The Subic to Clark portion spans 50.5 kilometers. Metro Pacific, which holds other infrastructure investments, operates the expressway on an interim basis.

San Miguel has been in acquisition mode following its announcement two years ago of a plan to venture outside its core businesses. It has acquired stakes in Manila Electric Co., Petron Corp., and Liberty Telecom Holdings, Inc. among others. — K. J. R. Liu - BusinessWorld

Gov’t to negotiate for gas stations at Subic-Clark-Tarlac tollway

THE BASES Conversion and Development Authority (BCDA) will be negotiating with oil companies to put up service stations along the Subic-Clark-Tarlac Expressway, with the bidding process failing twice.

The short list of oil firms the BCDA will be negotiating with will likely include Petron Corp., Pilipinas Shell Petroleum Corp. and Total (Philippines) Corp., tollway manager for operations and maintenance Valiente R. Aquino said.

"The first bidding failed. No one officially expressed interest. The re-bidding failed again [on April 13]. The main cause we see for this is [the low] traffic volume," Mr. Aquino said in a telephone interview late last week.

Three service areas were up for bidding, data from the BCDA Web site show. These are a 17,180-square-meter site in Floridablanca, Pampanga, a 10,000-square-meter site in Concepcion, Tarlac and another 10,000-square-meter site also in Tarlac but for the south-bound lane.

The BCDA wanted a deal wherein the lease would cost at least 5% of the minimum value of the properties, appraised at P1,000 per square meter. Business World

Clark SCTEX interchange opens today

It’s all systems go for Sunday's opening of the Clark South Interchange, the second of four additional service structures of the 93.7-kilometer Subic-Clark-Tarlac Expressway (SCTEX), the Bases Conversion and Development Authority (BCDA) announced Saturday.

Last Dec. 23, the government-run BCDA opened the Clark North Interchange that provides direct access from SCTEX to Clark, and vice versa. It is connected to the 3.8-kilometer Panday Pira access road, which leads to the northern area of the Clark Freeport Zone.

The remaining two SCTEX interchanges — one each in Porac and Floridablanca towns in Pampanga — are due for completion by mid-2009.

With the completion of the North and South interchanges already in place, access to the 93.7 kilometer SCTEX connecting three key economic zones in Luzon — Subic Bay Freeport in Olongapo City, Clark Freeport in Angeles City and the Central Techno Park in La Paz, Tarlac — has become much easier and faster.

The Clark South Interchange will serve as the entry and exit points to and from the main zone of the Clark Freeport Zone and the SCTEX. The main zone of the Clark Freeport Zone comprises some 4,000 hectares where the Clark Development Corporation (CDC), Clark International Airport Corporation (CIAC) and Diosdado Macapagal International Airport (DMIA) are located.

Clark North Interchange opens

The Bases Conversion and Development Authority, builder and operator of the 94-kilometer Subic-Clark Tarlac Expressway, unwrapped a package of Christmas treats for the public with the completion of the 3.8-kilometer Panday Pira road and the Clark North Interchange designed to facilitate mobility within the Clark Freeport Zone complex.

The BCDA said both facilities would strengthen the SCTEX role as a key player in the development of Central Luzon into a premier investors’ haven in the Asia Pacific rim.

BCDA executive vice-president Isaac Puno III, in a press briefing at the Clark Freeport Zone, said the state-run corporation is the people’s “long-term partner as we seek to achieve development goals where Central Luzon would be the most progressive, most dynamic and strongest economy in the Philippines.”

SCTEX spokesman and program manager for operational support and services Robert Gervacio said the Panday Pira road and the Clark North Interchange will serve as the northern access to Clark from the SCTEX.

SCTEX program manager for engineering and construction Eduardo Lena said the construction of the Panday Pira access road inside Clark opens to vehicular traffic in time for the opening of the Clark North Interchange. Journal online

Clark interchange to open before Christmas

CLARK FREEPORT -- The nearing completion of Panday Pira road that connects to Subic-Clark-Tarlac Expressway (SCTEx) will be an early Christmas treat for motorists.

Officials of the Bases Conversion and Development Authority (BCDA), builder of the 94-kilometer SCTEx, told a press conference Thursday that the opening of the Panday Pira stretch would pave the way for the full operation of the Clark North Interchange.

The 3.8-kilometer long road serves as the main access to Clark for motorists coming from the towns of Tarlac and Mabalacat. According to Gen. Robert Gervacio, BCDA spokesperson, the road is already 66.10 percent complete.

"The Clark North Interchange could be accessed through the Panday Pira Road just before Christmas day," Gervacio told reporters during the briefing.

Along with the Clark North Interchange, Gervacio said construction and developments are also being done on the Floridablanca and Porac Interchanges in the north of the province.

The three interchanges, reportedly constructed at a cost of P1.1 billion, are expected to spur enough vehicular volume for BCDA to recover the principal cost of constructing SCTEx as well as subsequent operation expenses.

Gervacio said that SCTEx currently makes around P1.3 million on normal days. "The most that we could raise is P2.5 million during long weekends," Gervacio added.

Despite the encouraging income, Gervacio said it would not be prudent to light the entire stretch of SCTEx as this would entail a higher toll for motorists.

"The lighting of the entire stretch would cost us P2.2 billion for civil works alone," Gervacio said, adding that P6 million would be the day-to-day cost to light the SCTEx from 6:00 pm to 6:00 am.

The BCDA said there is enough lighting available along tollbooths and plazas with added reflector paints to aid motorists traveling at night. Gervacio also assured that security inside the SCTex is tight and there is enough paramedic support in case of accidents.

Winston S. Cruz, program manager of SCTEx operational support services, pointed out that BCDA strictly adheres to a continuing road improvement program not only to prolong the roadway's lifespan but also to ensure public safety and comfort. By Ian Ocampo Flora - SunStar

P132-M expense for Subic-Clark-Tarlac road questioned

The Commission on Audit (CoA) has questioned some P132 million of Bases Conversion and Development Authority (BCDA) expenses for the construction of the Subic-Clark-Tarlac Expressway (SCTex), citing duplicated entries, bloated prices of materials, and unnecessary spending.

CoA further noted in its report that BCDA should have held its consultants liable for around P7.726 billion in design changes.

"The justifications to the observations of the Commission on Audit on the cost differences of the expressway were duly submitted by BCDA to CoA. We’re setting up a meeting to explain the said discrepancies and clarify the issues," Lani B. Macasaet, BCDA public affairs manager said in a phone interview Monday.

BCDA oversaw the construction of the 93.77-kilometer expressway, which connects Subic, Clark and Tarlac. The expressway, which was funded largely by the Japan Bank for International Cooperation, began commercial operations in late July.

CoA said that BCDA’s payment of P57.214 million to Kajima Corp. and Hazama Corp. for rent of private vehicles for engineers violated Republic Act 4136, which prohibits the hiring of private cars. CoA further noted that there was no lease agreement for the transaction.

The P20.212 million BCDA spent to pay for the fuel and maintenance costs of certain service vehicles for the project was likewise questioned, with CoA stressing that the contractor should have shouldered this cost, as agreed upon in the contract.

BCDA’s justification that the payment was allowed under the Bill of Quantities, a separate agreement from the contract, was a wrong interpretation of that agreements’ provisions, CoA said.

"[BCDA’s] interpretation of the said sub-clause is of no merit. Provisions appearing in the contract agreement should prevail over items specified in the Bill of Quantities," CoA said.

CoA also asked SBMA to delineate survey work performed by various contractors, suspecting that consultants were paid for duplicated work. "The works performed by the [consultants] were done within the same area, thereby making the services a duplication," CoA said. "We recommend that [BCDA] justify why the payment of P23 million should not be disallowed."

An additional P10 million involved in the survey of lots was also deemed irregular, as CoA found that BCDA paid surveyors even before negotiations for the project’s contract were concluded.

The report quoted BCDA as saying that the early payment was done because negotiations took too long and the survey of the lots had to be done immediately to address right-of-way issues.

BCDA was also quoted as saying that a clause in the project’s contract allowed for the reimbursement of costs for advanced jobs.

CoA also tagged as "unnecessary" the P19.158-million expense arising from the splitting of the construction contract to two corporations, R.D. Policarpio and Baque Corporation.

"[BCDA] could have saved such costs had the contract for the construction of ramps and over-passes was not [sic] split into two contracts but awarded and implemented by only one contractor," CoA said in the report.

The report quoted BCDA as replying that contracts for the overpasses were separated into two in a bid to meet the overall construction deadline.

CoA also estimated that costs for the overpasses’ construction were bloated by P1.752 million, citing inconsistent unit prices for the concrete slabs, and lumped costs that exceeded the provisional sum in the contract.

CoA deemed another P557,000 in expenses for the construction of ramps in Tarlac by Baque Corp. as duplicated work.

CoA also ordered BCDA to explain a lack of provision in the contract that would pin liability on consultants for the costly redesign of the expressway.

"[The redesigns] should have been part of the detailed scope of work of the consultants under the original contract. Designs should have been adequate so no variation orders were necessary," CoA said.

"Numerous variations reflected deficiencies in the planning and design stage of the project which the consultants should have been held accountable for."

The project had 137 documented redesign works costing P7.726 billion, CoA said in the report.

The report quoted BCDA as saying that the changes in the designs were due to the reduction of the project budget to P21 billion from P25 billion. - BusinessWorld

Politicos, speculators grabbing SCTEx sites

By FEDERICO D. PASCUAL Jr. - Philippine Star

CLARK FIELD (PLDT/WeRoam) — Work has been going on furiously here to put back the interchanges of the P27-billion Subic-Clark-Tarlac Expressway (SCTEx) that had to be dropped when funds were ambushed by “commissioners” along the 94-kilometer road.

The dropping of the vital Clark interchange has embarrassed President Gloria Arroyo, the patroness of the Clark industrial-tourism zone who has been boasting that this signature project in her home province would spark the rapid development of Central Luzon.

But how can the SCTEx serve Clark, its main client, without an interchange through which raw materials can be received from the Subic port and finished products trucked back for export?

To plug the gap, the Bases Conversion and Development Authority has borrowed some P6.4 billion more from the Japan Bank for International Cooperation. The JBIC already lent earlier some P23 billion for the entire length of the expressway and the missing interchanges.

* * *

WORK RUSHED: One interchange is being rushed near the Yokohama Tire factory in South Clark, and one each in the towns of Floridablanca and Porac, which are adjacent to this former US air base.

There is another interchange near the Expo Filipino (also known as the Ramos White Elephant) but officials are representing it as an extension of Panday Pira road. Why the fuss over what to call it when it is clearly an interchange because it has an exit and an entrance to the SCTEx?

Officials of BCDA assure us that the Panday Pira interchange will be finished before the yearend and the other one near Yokohama by Feb. 14 as a Valentine’s Day gift.

The interchanges at Porac and Floridablanca may take longer (possibly later next year), because the roads to which they will connect are to be built by the Department of Public Works and Highways, which is not known to work that fast.

* * *

SLOW POKE: Some BCDA officials are afraid that if they rush the Porac and Floridablanca interchanges and complete them without the DPWH roads, they would be accused of having put up White Elephants.

They do not want a repeat of the embarrassing “Bridges to Nowhere” of President Arroyo erected by the British firm Mabey & Johnson even where there was no river or creek to span or in the absence of connecting rural roads.

(The scandal did not faze the local runner of M&J. Emboldened by his Palace connection, he has reportedly found a new principal, a French firm, selling steel bridges that are reportedly 2.5 times more expensive than comparative European bridges in the country.)

Engineers said the Porac and the Floriblanca interchanges are actually not as urgent as Yokohama and Panday Pira in Clark, but that the projects are political commitments of somebody in Malacañang.

* * *

SPECULATORS: But the biggest news here at the moment about the interchanges is the frenzied real estate transactions and speculation involving business-minded politicians.

Some technicians tell us that while the owners of land hit by the interchanges have to haggle to get a good price under expropriation proceedings, speculators and officials with insider information gobble up adjacent property at higher prices.

One landowner with property near one interchange is being offered in court only P150 per square meter, while well-connected officials and their business associates have cornered adjacent property for much more.

One interchange being eyed with suspicion, also with jealousy, is the interchange in barangay Dolores in Mabalacat. This is in addition to another interchange, also in the same town, in barangay Mabiga where motorists from North Luzon Expressway enter SCTEx.

We have not heard of a good explanation for the redundancy. Having two interchanges in one town and adding two more right in Clark does not seem to make sense to many observers.

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DESERTED ROAD: A drive through the SCTEx prompts one to ask how the expressway can pay for itself with its scanty traffic.

Driving from Clark to Subic and back, for instance, one hardly sees other vehicles on the road. At the toll rate being charged, the road will not be able to earn enough for its upkeep, much less to pay for the P27 billion borrowed from Japan to build it.

That is just vehicular traffic, most of which consist of a few weekenders and sightseers. As for the trucks and vans supposedly laden with raw materials for the factories in Clark, one hardly sees them.

Despite its obvious design deficiencies, the road is a beautiful experience for Filipinos used to bad roads and who have not traveled abroad. The scenery is still pleasant — until the strip beside the expressway starts getting dotted with squatter shanties and billboards, which may not be far off.

* * *

NO TURNING: Motorists should be warned that there is no exit or U-turn anywhere between Clark and Dinalupihan in Bataan, which are about 50 kilometers apart.

If one enters the expressway and changes his mind or realizes a mistake about which direction he should take, there is no way he can turn around. He has to drive the entire length between Dinalupihan and Clark to go back.

As for the question of why there are no lights, making the expressway dangerous for night driving, motorists are forewarned that they have nothing but their headlights and the reflectorized signs to guide them.

By and large, however, the SCTEx is a good road. Driving through it is an experience — like driving on an expressway abroad — that one wants to talk about.

Automated transit and cargo declaration at SBMA,Clark

By. Fred M. Roxas – Manila Bulletin

CLARK FREEPORT, Pampanga – The Clark Development Corp. (CDC), and Subic Bay Metropolitan Authority (SBMA) have signed here with Taiwan a memorandum of agreement to establish an Automated Transit, Admission and Declaration of Cargo system at the CDC and SBMA.

The objective is to facilitate and harmonize customs systems and procedures in two Philippine economic zones and the Taiwan ecozone, according to Philippine officials.

The agreement is designed to ensure and integrated and coordinated aproach to the development of the Clark-Subic Economic Corridor as a competitive world-class logistics center in the Asia Pacific Region.

Pamintuan explained that the agreement mandates CDC and BCDA to adopt, prepare and implement comprehensive and detailed plans for the conversion of the former Clark and Subic military facilities and their extensions consistent with the plans and programs of the national and local governments.

One principal provision of the newly-signed agreement is to facilitate trade and business, increase the transparency in cargo processing, provide accurate, timely and cost-efficient exchange of information, reduce customs operational costs and enhance revenue collections, he said.

Subic toll expressway contract up for bidding

STATE-OWNED Bases Conversion and Development Authority is preparing the terms of reference for the bidding later this year of the long-term contract to operate the Subic-Clark-Tarlac Expressway toll road.

Subic toll road spokesman Robert Gervacio said the BCDA was finalizing the terms of the operation and maintenance contract, which would likely cover a term of least 10 years.

The authority bid out the contract twice last year and failed in both auctions.

Gervacio said the agency negotiated the contract after two failed biddings as provided in the government procurement law. The negotiations resulted in the hiring of the joint venture of First Philippine Holdings Corp. and Egis Road Operation and Tollways Management Corp. as interim service provider to operate the toll road six months, renewable for another six months.

The entire 94-kilometer tollway is now open for commercial operations. The Subic-Clark segment opened in April, while the Clark-Tarlac section commenced last month.

Gervacio said the toll road now serves as the new economic backbone for Central Luzon and adjoining regions, creating wider opportunities for investment, trade and employment.

With the opening of the entire road, motorists from Manila can now travel straight to Subic via the North Luzon Expressway and the Subic Freeport Expressway in Tipo.

Motorists can also exit at Subic toll road interchanges in Dinalupihan, Bataan; Mabalacat, Pampanga; and the municipalities of Concepcion, San Miguel and Tarlac City in Tarlac. By Elaine Ruzul S. Ramos - Manila Standard Today

SCTEX opens today

WITH the full commercial operations of the 93.77-kilometer Subic-Clark-Tarlac Expressway (SCTEX) following the opening of the remaining 32-kilometer Clark-Tarlac stretch, motorists can expect reliable and expert road assistance from Tollways Management Corporation (TMC), SCTEX interim operator.

The state-owned Bases Conversion and Development Authority (BCDA) announced the opening of the Clark-Tarlac segment of the SCTEX on today, at 12:01 a.m.

The SCTEX, which is 93.77 kilometers long, is composed of two segments: the 50.5-km Subic-Clark segment (Package 1), and the 43.27-km Clark-Tarlac segment (Package 2). Package 1 was opened to the public last April 28, 2008.

TMC, which is also the operator of the North Luzon Expressway (NLEX), has deployed similar roadside assistance services as offered in NLEX such as patrol vehicles and tellers, as well as customer service, management and support staff.

Charly Española, TMC’s division head for the SCTEX, said they have deployed emergency medical services and towing crew, as well as roadside repair technicians in the SCTEX.

TMC is always taking additional measures to ensure that travel within SCTEX is on-time, safe, secure and comfortable. Motorists will continue to receive the following services from its emergency response teams. By: Jun Icban-Legaspi - Journal online

Ricafort to succeed Laus as CDC chief

CLARK FREEPORT -- The lobbying by different sectors and power brokers on who should sit at the helm of Clark Development Corporation (CDC) seems to be finally over.

Long-time CDC director Benigno Ricafort is set to succeed CDC president Liberato Laus, who will formally relinquish his post by the end of this month.

This was announced last Thursday by Subic Clark Alliance for Development Council (Scadc) Secretary Edgardo Pamintuan before the start of the forum on the Scadc Mega Logistics Hub at the Fontana Convention Center here.

Laus informed President Gloria Macapagal-Arroyo about his intention to leave his post in a letter he submitted to Malacañang in May this year.

Laus cited as reason for leaving CDC his desire to go back to his business and steer his companies in the direction of the country's growing economy under the Arroyo administration.

Pamintuan said President Arroyo has chosen Ricafort based on his experience and understanding of the internal workings inside the Freeport Zone.

"His familiarity with the Freeport will greatly help in the way he will lead and how he would be making his decisions," Pamintuan added.

Ricafort, who is among the old-time CDC directors, has been serving the state-owned corporation for 15 years under its seven presidents. As director, he had continuous liaison with the Bases Conservation and Development Authority (BCDA) and had active participation in overseas and local investments and promotion for Clark.

Ricafort said he will try to put a "stronger community image" for this Freeport.

"We will be looking at our corporate responsibility towards our immediate community. Within Clark, we are looking on the Sub Zone as the next area for future development here," he said.

Ricafort also hailed the efforts and achievements of Laus.

"He (Laus) did a good job and has left his own mark at CDC. The challenges that we will face now would be different from his," Ricafort added.

Laus reportedly favors Ricafort to succeed him to ensure the continuity of his programs for the Freeport.

Educated in the field of business and economics, Ricafort received his Bachelor of Science, Major in Finance at the San Beda College and his Master of Business Administration at St. John's University in New York. He also completed advanced courses on international trade in Germany, Japan and the Netherlands.

As a community servant, Ricafort figured prominently as the president of the Kapampangan Development Foundation (KDF), an organization of Kapampangans based outside of the province. He pioneered social works like the Walking Free Pampanga with the mission of making the province's amputees mobile again. KDF has also launched various social services missions targeting Kapampangan indigents. Activities of the organization are mostly composite efforts of other organizations through his vast networks.

Ricafort is set to take the helm of CDC as its eighth president. SunStar

BCDA vows to fulfill MoA to farmers

THE Bases Conversion and Development Authority said it intends to fulfill all its development commitments to the people of Concepcion, Tarlac, particularly the completion of eight pedestrian overpasses that will serve as farm crossings, before opening the Clark-Tarlac segment of the Subic-Clark-Tarlac Expressway to commercial traffic.

BCDA chief legal counsel Arnel Casanova said the agency is on track to deliver all its commitments to the municipality and its residents that are contained in a Memorandum of Agreement with Concepcion in 2005.

“We are not in breach (of the MOA). As a matter of fact, we have built four of the eight pedestrian overpasses that we committed under the MOA, and we will soon complete the others,” Casanova said.

The BCDA head lawyer said he personally relayed BCDA’s commitment to speed up completion of the overpasses to the legal representatives of Concepcion last week during a hearing at the Regional Trial Court in Capas, Tarlac where the municipality filed a case seeking to compel the BCDA to fulfill its MOA obligations.