Understanding the ‘Build,

Build, Build’ program

By: Sara Mae D. Mawis - @inquirerdotnet
Philippine Daily Inquirer / 02:31 AM July 28, 2018

Productivity depends on many factors, including our workforce’s

knowledge and skills and the quantity and quality of the capital,
technology and infrastructure that they have to work with, said American
economist Janet Yellen.

The Philippines suffers from unemployment and poverty because of poor

infrastructure.
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In a report by academic Richard Javad Heydarian for Forbes Magazine,

the Japan International Cooperation Agency (Jica) found that traffic
congestion in Manila, caused mainly by poor infrastructure, led to losses
of about P2.4 billion in 2012, and could triple by 2030.

“Since 2011, the Philippines has broken out of its historically mediocre
growth pattern to feature among the fastest growing nations in the
[Southeast Asian] region,” said Heydarian. “But the country’s growth has
been shallow and far from comprehensive, leaving high levels of
unemployment, poverty and hunger relatively untouched.”

“Infrastructure is clearly the country’s Achilles’ heel.”

Thus, President Duterte initiated the “Build, Build, Build” (BBB) Program,
which seeks to accelerate infrastructure spending and develop industries
that will yield robust growth, create jobs and improve the lives of
Filipinos. Public spending on infrastructure projects is targeted at P8 to 9
trillion from 2017 to 2022.
Key infrastructure projects under the BBB Program include: (a) the Subic-
Clark Railway; (b) the North-South railway projects connecting Los Baños,
Laguna to Tutuban, Manila and Clark Freeport in Pampanga; and (c) a
1,500-hectare industrial park in Clark, Pampanga; and (d) an expanded
Clark International Airport also in Pampanga.

Other projects were: (a) four energy facilities; (b) 10 water resource
projects and irrigation systems; (c) five flood control facilities; and (d)
three redevelopment programs.

Finance Undersecretary Grace Karen Singson said that proposals for

public-private partnerships to implement infrastructure projects,
particularly unsolicited proposals from the private sector, are most
welcome.

Unsolicited proposals should involve projects that: (a) address public

need; and (b)(i) involve a new concept or technology; or (ii) are not
included in the government’s list of priority projects. These proposals are
subject to comparative bidding or the Swiss Challenge, wherein the
original proponent exercises his right to match the subsequent offers of
other proponents for the same project.

In this regard, in Asia’s Emerging Dragon Corp. v. DTC, the Supreme Court
recognized the Swiss Challenge under the implementing rules and
regulations of the Build-Operate-Transfer Law, in which the original
proponent exercises his right to be awarded the project should it be able
to match the lowest or most advantageous proposal within 30 working
days from notice.
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Furthermore, an unsolicited proposal entails a new concept or

technology when: (a) it demonstrates its ability to, among others,
significantly reduce implementation of construction costs, accelerate
project execution, improve safety or reduce costs of facility maintenance
and operations; (b) it involves a process for which the proponent or any
member of the proponent consortium possesses exclusive rights, either
worldwide or regionally; or (c) it involves a design, methodology, or
engineering concept for which the proponent or member of the
proponent consortium or association possesses intellectual property
rights.

Meanwhile, solicited PPPs, which are projects in the government’s

priority list, must comply with the public bidding process and receive
government support not exceeding 50 percent of the total project cost.

The Supreme Court held in Lagoc v. Malaga that competitive public

bidding aims to: (a) protect the public interest by giving the public the
best possible advantages through open competition; and (b) avoid
suspicion of favoritism and anomalies in the execution of public
contracts. It abides by three principles, namely: (a) offer to the public; (b)
an opportunity for competition; and (c) a basis for an exact comparison of
bids.

“Human rights to me means giving Filipinos, especially those at the

society’s fringes, a decent and dignified future through social and
physical infrastructures necessary to better their lives,” Duterte said in
his State of the Nation Address on July 23.

Much, however, remains to be seen with regards to the progress of his

BBB Program.

Senator Sherwin Gatchalian filed Senate Resolution No. 759, seeking to

review the status, sustainability and risks of the BBB Program. Said
Gatchalian: “There is a need to closely monitor the debt obligations and
modes of financing incurred and adopted by the Duterte administration…
to ensure transparency, accountability and prudent use of loans and
other financing methods utilized by the government.”