Vol. XXI, No. 198-A [ Business World Online ]
Saturday, May 10, 2008 | MANILA, PHILIPPINES
The powerful Committee on Oversight of the House of Representatives plans to review the P7-billion supplemental loan sought by the Bases Conversion and Development Authority (BCDA) intended to finance additional costs to complete the construction of the Subic-Clark-Tarlac Expressway.
Committee chairman Quezon Rep. Danilo E. Suarez (3rd district) said his committee will review whether the additional loan is justified, given costly delays in the construction of the new tollway. "Susulat kaming lahat na i-hold muna while we are deliberating [All of us in the committee will ask that the supplemental budget be put on hold while we are deliberating on its justification]," Mr. Suarez said after a committee hearing with BCDA officials last week.
He added that the loan may not necessarily be tapped from the Japan Bank of International Cooperation, which financed the expressway, and that the government may choose a local contractor for the additional works needed to complete the highway.
"I think the contractors are being babied. They were already delayed completing the project. Why should we still get the same service?" Mr. Suarez said.
The governments of the Philippines and Japan signed and exchanged notes last March 27 for the �17.1-billion (approximately P7.1-billion), which resulted in a total project amount of �59 billion, or approximately P28 billion.
The SCTEx is a 94-kilometer road connecting major industrial and business hubs in Central Luzon. The road is 97% complete, but the BCDA said it needs the additional loan for the construction of interchanges in Floridablanca, Porac and Panday Pira in Pampanga. — ABLL
________________________________________________________________________
