Foreign projects put on hold by Aquino
Source: Agencies |
June 19, 2011, Sunday
|
Print Edition
Print Edition
PHILIPPINE President Benigno Aquino III is canceling or reconsidering foreign-funded infrastructure projects worth US$2 billion, saying that although his country badly needs improvements, the contracts are overpriced and technically deficient.
He said Friday that he has canceled a Belgian-funded lake-dredging project, and ordered a restudy of a Chinese-financed rail line and renegotiation of a French-funded port work.
Aquino has been reviewing infrastructure contracts signed under his predecessor, Gloria Macapagal Arroyo, whose administration has been accused of corruption. He did not accuse anyone or the companies involved in the three projects of corruption but said dredging in particular "is one of the most notorious practices for those who do corrupt practices ... so I have a tendency to be allergic to such projects."
Aquino, who won last year's election by a landslide on a strong anti-poverty and anti-corruption platform, canceled the 18.7 billion peso (US$430 million) Belgian project to dredge Laguna Lake, the country's largest freshwater lake, on the southern edge of Manila.
He said the project was supposed to increase the lake's water-holding capacity to ease flooding and provide potable water to the sprawling metropolis, but that the plan was to simply move 12 million cubic meters of silt from one part of the lake and dump it on another over three years.
He said it would be better to spend that money for his government's 21 billion peso conditional cash transfer program to give financial assistance to the poorest 2.3 million Filipino families.
Aquino's year-old administration is fighting graft while wooing foreign investors to partner with his government to boost the economy and fulfill his promise of easing poverty.
"We thank the foreign governments that have been assisting us," he said. "We think it is incumbent upon us to be responsible with their kindness in ensuring that these projects are worthwhile."
He said he wanted to ensure that such projects would also allow the country to repay its loans to foreign creditors in the long run.
He said a 12 billion peso French project to build 72 steel roll-on roll-off ports around the archipelago will be studied because it was overpriced by about 200 percent, and the country could do with only 36 ports.
He said he ordered renegotiation of a rail project linking Manila to a northern airport complex, financed by a loan from China, principally because of the cost, which has ballooned to more than US$1.3 billion. He said the existing plan is to have the line carry only passengers, no cargo, and for it to use narrow-gauge rail, which would cost more because such systems are no longer standard and would have to be custom-made.
He said Friday that he has canceled a Belgian-funded lake-dredging project, and ordered a restudy of a Chinese-financed rail line and renegotiation of a French-funded port work.
Aquino has been reviewing infrastructure contracts signed under his predecessor, Gloria Macapagal Arroyo, whose administration has been accused of corruption. He did not accuse anyone or the companies involved in the three projects of corruption but said dredging in particular "is one of the most notorious practices for those who do corrupt practices ... so I have a tendency to be allergic to such projects."
Aquino, who won last year's election by a landslide on a strong anti-poverty and anti-corruption platform, canceled the 18.7 billion peso (US$430 million) Belgian project to dredge Laguna Lake, the country's largest freshwater lake, on the southern edge of Manila.
He said the project was supposed to increase the lake's water-holding capacity to ease flooding and provide potable water to the sprawling metropolis, but that the plan was to simply move 12 million cubic meters of silt from one part of the lake and dump it on another over three years.
He said it would be better to spend that money for his government's 21 billion peso conditional cash transfer program to give financial assistance to the poorest 2.3 million Filipino families.
Aquino's year-old administration is fighting graft while wooing foreign investors to partner with his government to boost the economy and fulfill his promise of easing poverty.
"We thank the foreign governments that have been assisting us," he said. "We think it is incumbent upon us to be responsible with their kindness in ensuring that these projects are worthwhile."
He said he wanted to ensure that such projects would also allow the country to repay its loans to foreign creditors in the long run.
He said a 12 billion peso French project to build 72 steel roll-on roll-off ports around the archipelago will be studied because it was overpriced by about 200 percent, and the country could do with only 36 ports.
He said he ordered renegotiation of a rail project linking Manila to a northern airport complex, financed by a loan from China, principally because of the cost, which has ballooned to more than US$1.3 billion. He said the existing plan is to have the line carry only passengers, no cargo, and for it to use narrow-gauge rail, which would cost more because such systems are no longer standard and would have to be custom-made.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
