Monday, October 01, 2007 House Speaker proposes BOT scheme for infra projects
HOUSE Speaker Jose de Venecia Jr. said government infrastructure projects that have “financial viability and can stand on their own balance sheets” should be undertaken through the Build-Operate-Transfer (BOT) scheme.
This policy, de Venecia said, would dramatically promote transparency and reduce corruption since BOT projects involve no government loss, risk or guaranty.
The Speaker made the proposal before a gathering of about 5,000 Baptist pastors, led by Manila Representative Benny Abante, and reiterated it before top business leaders of the Joint Foreign Chambers at the Manila Peninsula.
De Venecia’s proposal was met with enthusiasm following a series of allegations of corruption and bribery in the National Broadband Network (NBN) project between the Philippine government and the Chinese firm ZTE.
“Under the BOT law, private developers finance the projects, and when they finance the projects, they finance their management and operations as well,” he said.
One eminent exception from this policy can be made when projects are classified as missionary with “not enough profitable traffic”, said de Venecia.
Missionary projects, the Speaker said, have to be undertaken at government expense or with financing with government loans and guaranty.
The joint chambers were headed by, among others, Shameem Qurashi, chairman and president of the Philippine Association of Multinational Companies Regional Headquarters, Inc.; Leslie Stokes of the British Chamber of Commerce of the Philippines; American Chamber of Commerce of the Philippines executive director Robert Sears; Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines; and leaders of the chambers of commerce of Japan, South Korea, Australia and New Zealand.
Also in attendance were Alberto Lim and Ernie Santiago of the Makati Business Club.
De Venecia’s remarks before the Baptist pastors drew applause as he said BOT projects would involve no cost to the Filipino taxpayers. Joining de Venecia were Representatives Ed Zialcita, Cynthia Villar, Exequiel Javier, Paul Daza, Magtanggol Gunigundo and Ramon Durano VI.
The BOT law, co-authored by de Venecia with then congressman Felicito Payumo in the 9th Congress, already has brought up investments in the country of up to P30 billion since its enactment. (Sunnex)
