THIS article may not interest some readers, for they may find it too technical and too challenging as an item. But for businessmen and economic students it may add some information. I'm no economist but with my long years (13 years) of experience in several boards of government owned and controlled corporations (GOCCs) including some private enterprises, I gained adequate knowledge to discuss issues of this nature though it may be limited.
Say for example, you read in the business page of a newspaper saying that conglomerate San Miguel Corporation has submitted to the Duterte administration a P27-billion unsolicited proposal to build a toll road that will link Manila to Tagaytay City. Not explained by the paper is, what does unsolicited proposal mean? Now let me do the explaining what is an unsolicited proposal.
It is an offer of a private company to an agency of government to undertake a particular project, say a toll road, an airport, a seaport etc. The company making the offer must come in a form of a term sheet wherein among which will include the amount, timelines, sharing etc.
With so many conglomerates now like San Miguel Corporation, Metro Pacific Investment, SMDC, Filinvest and many others, offers to government to undertake several big ticket items are pouring in.
And how does government react to it?
First, the initial reaction should be on the part of the government agency where the unsolicited proposal was addressed. The second step is for the agency, through its management committee to its executive committee and finally to the board of directors, will pass upon the offer. In any case the offer positively meets all the standards, further discussions will follow between the private group and executives of the agency. And every step along the way the board of directors are informed, and the members will debate on the merits of the proposal.
And it will not end there. The approval of the proposal will have yet to pass the gauntlet, so to speak. It has to be submitted to National Economic and Development Authority (Neda) and to the Office of the President and other offices where the offer needs evaluation.
Now, the next question is why government is too timid to evaluate such unsolicited proposal? That will entirely depend on the marching order of President Duterte.
There are so many unsolicited proposals on the table for government to consider. If what the government is saying that under Duterte's watch, it will be the “golden age of infrastructure,” then please fast track evaluation.
What do you think about a fork type underground tunnel that will start in Bataan and end in Roxas Boulevard and the other in a town in Cavite? I heard this from my friend Tong Payumo, a former colleague at Bases Conversion and Development Authority. Another Public Private Partnership worth considering.
Tweets:
- 450 gambling addicts banned from casinos. Yet they can easily enter. PAGCOR, please don't kid yourself.
- Now Pagcor is reviewing security measures of casinos. Knee Jerk. Too late. After 38 lives were lost.
- Congressional inquiry on the Resort World incident? Wasting your time.