National broadband project to push through - DOTC

Amid calls for the government to open a bidding for the controversial $329-million nationwide broadband network (NBN) project, the Department of Transportation and Communications said it is pushing through with its favored contractor, Chinese phone equipment supplier ZTE. In a press briefing Friday, Ricardo Diaz, a department director, said ZTE’s proposal is superior to other proposals submitted to the agency and clarified that ZTE came ahead of everybody in submitting a complete proposal. "It is too late already for them, there is already a signed contract for the project’s implementation, Mr. Diaz said. The start of the main work for the project is scheduled for September. The department’s decision to pick ZTE as its contractor without going through the bidding process irked California-based Arescom, Inc., and local firm Amsterdam Holdings, Inc. The two companies have submitted separate proposals for the NBN project. Amsterdam Holdings, Mr. Diaz said, submitted an incomplete proposal while Arescom’s offer was limited, covering only the Department of the Interior and Local Government. Mr. Diaz explained that a public bidding is not needed in the case of the NBN project . "This is an executive agreement between the two governments, there is no need for a bidding," he said, noting that ZTE is a state-owned corporation. But the loan facility for the project still needs the approval of the Finance department. Under the agreement with ZTE, the government will get funding through a loan package from the Chinese Export-Import Bank. The bank will impose a maximum 3% interest, and the loan will be repaid in 20 years, with repayments starting five years after the release of the loan. "We see no problem in getting the approval for the loan package. We followed all the requirements. We have gone through the process," he said. The NBN project is considered a priority as it seeks to connect all government agencies nationwide via a broadband Internet and telephone network. - Maricel E. Estavillo/BusinessWorld