Gov't think-tank exec calls for review of build-operate-transfer law

An official of government policy research outfit Philippine Institute for Development Studies has advised a review of the build-operate-transfer law and its implementing rules and regulations, due to recent controversies involving government infrastructure projects which may have exposed flaws in the BOT Law. In a statement, Dr. Gilberto Llanto, a senior research fellow at the PIDS, said controversies surrounding recent government projects indicate the need to address various issues, starting from the legal framework to the level of responsibilities of the government institutions that are involved in the project cycle, from entry level to implementation and completion. In his paper “Reforming the BOT Law: A Call of the Times," Llanto noted that the government should apply the traditional process of approving a BOT project, where the oversight agencies headed by the National Economic and Development Authority- Investment Coordinating Committee (NEDA-ICC) have the responsibility for project review and approval while line agencies are responsible for identifying and preparing project proposals. Llanto said that currently, line agencies are responsible for identifying, selecting, and approving projects. “This clearly poses a conflict of interest role for these agencies because line agencies will now both identify, review and approve the projects submitted to the NEDA-ICC. While the intent of the government was to facilitate the project approval process, what it did not realize was the conflict of interest that the [proposed] change has created," Llanto noted. Llanto also said the BOT Law should express a clear preference for competitive bidding to make sure the government gets the most for its money. He said the law should be amended to show that direct negotiation and unsolicited proposals remain only as exceptions. The Senate has been investigating bribery allegations in the $329-million National Broadband Network deal with Chinese company Zhong Xing Telecommunications Equipment (ZTE) Corp. The NBN project stemmed from an unsolicited proposal by local firm Amsterdam Holdings, but was awarded to the Chinese government through an executive agreement. China then awarded the contract to ZTE Corp. The $450-million Cyber Education is also being questioned for being allegedly overpriced. - Cheryl Arcibal, GMANews.TV