DPWH’s Villar battles corruption, and RoW issues

The Duterte administration is slowly making headway toward building more infrastructure projects but issues on the right of ways and corruption are hindering the “golden age of infrastructure” goal.

New city. Finance Secretary Carlos Dominguez III (from left), Public Works and Highways Secretary Mark Villar, Economic Planning Secretary Ernesto Pernia, MTD Clark Inc. chairman Isaac David, MTD Clark Inc. president Nicholas David, Bases Conversion and Development Authority president and CEO Vivencio Dizon and Transportation Secretary Arthur Tugade lead the media on a tour of the New Clark City spanning the city of Angeles in Pampanga and the towns of Capas and Bamban in Tarlac. New Clark City is one of the flagship projects under the Duterte administration’s “Build, Build, Build” program.

The Department of Public Works and Highways so far is pushing the right buttons to accelerate the construction of critical infrastructure projects. The department, for one, granted an original proponent status to Metro Pacific Tollways Corp. to build the ambitious P22.4 billion Cavite-Tagaytay-Batangas Expressway, the first OPS granted under the Duterte administration. 

CTBex is a 50.4-kilometer expressway that will connect Cavite and Batangas, with a spur road to Tagaytay City and ultimately terminating in Nasugbu, with another spur road to Tuy, Batangas.

“This is another sign that Build, Build, Build is all systems go,” DPWH Secretary Mark Villar said. 

Under the “Build, Build, Build” program, the government plans to spend P8 trillion to P9 trillion, or roughly $160 billion to $180 billion, for the big-ticket projects.

The “Golden Age of Infrastructure" program aims to build more roads and bridges, airports and seaports with the end goal of decongesting the country and subsequently promoting inclusive growth and development. 

New expressway projects 

Villar also said the construction and acquisition of road right-of-way for Cavite-Laguna Expressway of MPCala Holdings Inc. were being rushed to complete the project with the planned 2020 deadline. 

“To date, 96 percent of Letter Offer have been served to the landowners, 81 percent of the signed Deeds of Absolute Sale and Expropriation Cases have been submitted to the Office of the Solicitor General, and 21 percent of the Permits to Enter/Writ of Possessions have been issued,” Villar said. 

Calax is a 45.29-kilometer, four-lane toll road which starts from CAVITEX in Kawit, Cavite and ends at the SLEX-Mamplasan Interchange in Biñan, Laguna with eight interchanges and one main toll barrier. It also has a bridge component of 12,207 meters inclusive of 4,618 meters of a viaduct.

The DPWH, meanwhile, said the C3 to R10 section of the NLEX Harbor Link was expected to open by the fourth quarter of 2019. 

NLEX Harbor Link Segment 10 is an 8.25-km elevated expressway traversing the NLEX from Karuhatan, Valenzuela City, passing through Malabon City, Caloocan City and extending to R-10 in Dagat-Dagatan, Navotas City. 

Featured as one of the big-ticket projects in the infrastructure plan, the NLEX Harbor Link Segment 10 is envisioned to alleviate traffic congestion and drive commerce between the Harbor area and Central and North Luzon. 

It is seen to advance transport logistics and facilitate efficient delivery of goods by providing an alternative entry to NLEX, bypassing EDSA and other busy streets of Manila. Once opened, travel time from the Manila Port to the NLEX will take just 10 minutes. 

“We want to fast-track all infrastructure projects,” Villar said. 

Slippage

To ensure efficient delivery of infrastructure, Villar has ordered the imposition of sanctions based on calculated actions on contractors with negative slippages.

“As early as when the system detects a 5 percent negative slippage—the contractor involved in the project will be given a warning and required to submit a “catch-up program” to eliminate the slippage or delay,” Villar said. 

“If such slippage furthers to at least 10 percent—he will be given a second warning and required to submit a detailed action program on a two-week basis. At any point that such contractor incurs a delay of at least 15 percent, he will be given a final warning and required to come up with a more detailed program of activities with weekly physical targets, together with the required additional input resources,” he added. 

Reforms

Villar said while reforms were still being done to further improve fiscal spending, the agency’s absorptive capacity in 2017 was the highest it achieved since the start of the Duterte administration.

“In 2017, DPWH has already recorded the highest absorptive capacity at 92 percent above the 85 percent target—with P674.93 billion in allotments and P621.94 billion in obligations incurred. This is historically the highest absorptive capacity achieved by the department,” Villar said. 

“This is far higher than the 70-percent absorptive capacity recorded in 2011—at a budget far lower. Allotment then was only at P173 billion and obligations was at P121 billion,” he added.

The DPWH as of June 15, 2018, has recorded a 68-percent absorptive capacity—with P457.13 billion obligations already incurred out of the P675.27 billion obligated. This excludes the projects executed by the department outside the General Appropriations Act, such as unsolicited proposals. 

“While the department is performing at its best—we learned that the problem of underspending is an institutional issue that can only be cured by institutional reforms. We need to ensure there is discipline in the planning process,” Villar said. 

“The Filipino should not be held liable for the flaws in the system. Corruption is a function of discretion and monopoly. In increasing accountability inside the system, we ensure faster budget execution and service delivery,” he said.

Villar also said the agency would fully migrate to the Infra-track System—a new monitoring system that utilizes the built-in geotagging feature, satellite technology, and drone monitoring. 

“This will put an end to ghost project. Now, before contractor claims could be processed before payments can be made—they would now need to submit geotagged photos as well as geographic-based status reports,” he said.

“Corruption is a function of discretion and monopoly. The use of technology increases accountability and serves as a strong deterrent against any existing and future anomaly and delays,” he said. 

http://manilastandard.net/spotlight/special-report-on-economy-growth-and-rising-inflation/273038/dpwh-s-villar-battles-corruption-and-row-issues-.html

Japan’s JR East planning driverless trains

TOKYO — East Japan Railway Co. (JR East) is considering the introduction of unmanned, self-driving operations on the Tohoku Shinkansen, Yamanote and other lines, The Yomiuri Shimbun has learned.

 The company is aiming to manage an expected shortage of drivers and conductors in the future ahead of a mass retirement of veteran crew members. It has already set up a project team to accelerate technological development.

 JR East is eyeing the development of a system to automatically run trains without a driver onboard. In the first stage, the aim is to have only a conductor onboard to deal with emergency situations. Eventually, the company plans to introduce completely unmanned self-driving operations.

 In Japan, unmanned train services are operated on the Yurikamome Line using a new transport system designed to prevent passengers from gaining access to the tracks. The Linear Chuo Shinkansen line currently under construction by Central Japan Railway Co. is scheduled to be operated without a driver.

 Existing JR and private railway lines have many crossings and other features, making it difficult to introduce unmanned train services from the viewpoint of preventing accidents. To realize such operations, it will need to take additional safety measures such as constructing elevated tracks, like those on the Yurikamome Line, and installing floor-to-ceiling platform barriers.

 JR East plans to introduce the system on the Yamanote Line, which is not linked to other lines, as well as the Tohoku Shinkansen line, most of whose tracks are elevated. There is also a plan to introduce the system to loss-making local railway lines in order to keep costs down and maintain their services.

 However, there still are many hurdles to clear. The company must develop a high-precision sensor that can detect obstacles on the tracks, as it is difficult to apply current technology to the self-driving system. It will also become necessary to develop equipment that detects abnormal noises and odors, which would currently be physically detected by crew members.

Legal system

Legal arrangements are also necessary. According to the Land, Infrastructure, Transport and Tourism Ministry, rules including ordinances on facilities and operating conditions, among others, based on the Railway Operation Law must be reviewed in order to introduce unmanned operations on existing lines.

The transport ministry is looking into the possibility of revising the rules. Kyushu Railway Co. is also taking into consideration the introduction of an automated train system.

 A sense of crisis over future labor shortages is behind the push toward self-driving operations. In the case of JR East, the number of employees aged 55 or older was about a quarter of the total workforce as of April 2017. However, the number of employees aged between 45 and 54 accounts for only 10 percent of the total due to the privatization that resulted from the breakup of Japanese National Railways, which led to hiring curbs. As mass retirement is expected to get into full swing, securing crew members has become a crucial task in the railway industry.

http://newsinfo.inquirer.net/1021247/japans-jr-east-planning-driverless-trains

LRMC on track to start LRT-1 Cavite Extension

Light Rail Manila Corp. (LRMC) is confident to start construction of the Light Rail Transit Line 1 Cavite Extension as planned despite right of way (ROW) issues in some areas.

The consortium originally targeted to start construction works for the LRT-1 Cavite Extension project by October.

“We’ve had some challenges in some areas but based on the report we’re getting, we’re starting to move. It’s clear that the project is going to be started quite soon,” LRMC president and chief executive officer Juan Alfonso said.

“We’re actually quite confident on the October schedules we’ve given. It looks like they’re achievable right now. We’re working on the permitting process and based on that last update on the timing, schedule is on track,” he said.

Alfonso said LRMC meets with the Department of Public Works and Highways on a weekly basis to help each other clear the right of way. “The sooner we clear it, the better for us,” he said.

Alfonso said majority or more than 50 percent of the right of way have already been cleared.

“When you have right of way it has several stages. The ROW has to be first cleared. After that it has to be certified by the independent consultant and then turned over, so it’s turned over to LRMC as being clear,” he said.

“The areas where we have issues or structures that have to be demolished, we’re working on those now. So I think we’re quite confident that once we start, those will be cleared when it’s time to pass on those areas,” Alfonso said.

LRMC expects the project to be completed by 2021.

Composed of Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) PTE Ltd., the consortium was awarded the public-private partnership project to operate, maintain, and extend the LRT-1 in 2014.

Alfonso said funding for the extension project would not be a problem as LRMC has already secured a P25-billion loan facility from three banks.

The rest, he said, would be funded by equity from LRMC. For the extension, the consortium is spending some P35 billion.

https://www.philstar.com/business/2018/08/14/1842244/lrmc-track-start-lrt-1-cavite-extension

Cavite rail extension work to start October

Light Rail Manila Corp., a joint venture of Metro Pacific Investments Corp. and Ayala Corp., said it expects to start the construction of Light Rail Transit Line 1 Cavite extension project by October this year.

“We’re on track for October. The right of way for one, majority of the portions have been cleared probably more than 50 percent. Right of way has to be cleared first, then it has to be certified by the independent consultant and turn over [to us],” LRMC president and chief executive Juan Alfonso said at the sidelines of the launching of ikotMNL (ikot Manila), a tourism campaign that aims to rediscover Manila using LRT-1 as the main mode of transportation. 

LRMC earlier signed an engineering, procurement and construction contract with Bouygues Travaux Publics for the LRT 1 Cavite extension project.

Once built, the extension will stretch LRT1 over 33 kilometers, from Roosevelt in Quezon City to Niog, Bacoor in Cavite City.

http://www.manilastandard.net/business/transport-tourism/272910/cavite-rail-extension-work-to-start-october.html

CA affirms ruling barring MRTDC from exercising ad space rights

The Court of Appeals (CA) has affirmed an earlier ruling barring the Metro Rail Transit Development Corporation (MRTDC) from exercising advertising and commercial leasing rights at the MRT-3 system pending arbitration proceedings over its failure to remit P2.47-billion in development rights payment (DRP) to government.

In a two-page resolution penned by Associate Justice Pablito Perez, the appellate court’s Eleventh Division junked MRTDC’s motion for reconsideration of its March 5 decision for failure to raise new arguments to warrant a reversal of the ruling.

“[T]the respondent’s claims have been judiciously passed upon in our decision, and we find no compelling reason to undertake a second review of the same issues,” the CA said.

The assailed decision lifted the writ of preliminary injunction (WPI) issued by the Pasig Regional Trial Court (RTC) that stopped the Department of Transportation and Communications (DOTC) from implementing its order refusing MRTDC access or work permits at the train system.

The issue involves advertising and lease income at the MRT 3 system as provided in the 1997 build-lease-transfer (BLT) agreement involving the construction and operation of the train system.

The DOTC warned it will terminate the BLT agreement following MRTDC’s alleged failure to make the necessary payments since July 2004, prompting MRTDC to file before the Pasig RTC a petition for interim measure protection (IMP).

MRTDC argued that DOTC’s refusal to issue access and work permits unlawfully hampered its exercise of its commercial leasing rights. MRTDC further sait it was freed from its liability to make DRPs since the BLT agreement automatically forfeited its rights in the DOTC’s favor because the airspace above the train stations were undeveloped by project completion date.

In reversing the RTC, the appellate court ruled that the lower court gravely abused its discretion in issuing a WPI in favor of MRTDC.

http://news.abs-cbn.com/news/08/13/18/ca-affirms-ruling-barring-mrtdc-from-exercising-ad-space-rights

Pagbubukas ng MRT-7 sa 2020, posibleng maantala

Right-of-way problems threaten to delay MRT 7 project

Decongesting traffic in northern Manila faces yet another hurdle as completion of the P67-billion Metro Rail Transit (MRT) 7 is being hampered by right-of-way (ROW) issues involving a planned train depot in Bulacan province, the Department of Transportation (DOTr) said on Tuesday.

Goddes Libiran, DOTr communications director, said the deparment had asked the Office of the Solicitor General (OSG) to file a petition for certiorari over a recent Malolos court ruling raising the zonal valuation of a 33-hectare lot in San Jose del Monte by nearly 900 percent.

In November, the DOTr filed an expropriations case in the Malolos regional trial court to acquire the land for the 22-kilometer MRT 7 project which would connect Quezon City to Bulacan province.

But on Feb. 15, Libiran said Judge Felizardo Montero issued an order granting writ of possession, provided that the government pay the property owner P1,800 per square meter based on a proposed Bureau of Internal Revenue (BIR) zonal valuation that was not yet in force.

The current and actual BIR valuation was P200 per sq m, also the basis for the DOTr’s initial deposit of P67 million for the 33-hectare land, Libiran added.

A July 2 letter from San Miguel Corp. (SMC), which is in charge of the project, said the new computation would cause the deposit to balloon to around P598 million, or nearly 56 percent of the DOTr’s total ROW budget for the project.

Libiran said that SMC would not be able to complete MRT 7 if the DOTr could not resolve the ROW dispute.

This could also push back the project’s completion from 2020 to 2021—a significant delay given the magnitude of the Metro traffic problem.

The OSG asked the court for a 60-day extension on Aug. 1.

Read more: http://newsinfo.inquirer.net/1018815/right-of-way-problems-threaten-to-delay-mrt-7-project#ixzz5NeImRxzp
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Right-of-way issues may delay MRT7 completion

Transportation officials are appealing the 800% raise in zonal valuation of the 33-hectare lot intended for the Metro Rail Transit Line 7 depot

The completion of the long-delayed Metro Rail Transit Line 7 (MRT7) project could further be hampered due to right-of-way (ROW) acquisition issues.

The Department of Transportation (DOTr) is appealing the Malolos Regional Trial Court Branch 11 decision raising the zonal valuation of the 33-hectare lot in San Jose del Monte, Bulacan intended to be the MRT7 depot.

In a phone interview, DOTr Communications Director Goddes Hope Libiran told Rappler that the department sought the help of the Office of the Solicitor General (OSG) to file a petition for certiorari at the Court of Appeals (CA).

From the original zonal valuation of P200 per square meter, the May ruling raised it to P1,800 per square meter – a whopping 800% increase. (READ: A long, winding road for better Metro Manila transport)

"If the writ of possession is issued later within the year, it could delay the completion of the project to 2021 instead of 2020," Libiran said in a mix of English and Filipino.

What happened? According to Libiran, they filed an expropriation case back in November 2017. Concessionaire San Miguel Corporation later on paid P67 million to acquire the land.

Under Republic Act No. 10752 or the Right-of-Way Act, the court should issue a writ of possession to the implementing agency within 7 days after the payment has been made.

No writ of possession was released to the DOTr and Judge Felizardo Montero instead asked the OSG to present evidence that the current zonal value of the property is at P200 per square meter.

Montero also said the writ of possession would be released when the P1,800 per square meter would be paid. Libiran said they filed a motion for reconsideration then.

"They asked the OSG to withdraw the motion for reconsideration because there was an approval [to raise the zonal valuation]. If they didn't delay the issuance of the writ of possession, we could have acquired the property prior to the approval of the raise," she said.

Next steps? The DOTr had asked on August 1 for an extension of 60 days to file the appeal at the CA.

If the CA does not rule in the department's favor, the MRT7 completion might be stalled again.

"If we pay roughly P598 million, we would already take 56% of the ROW budget for this year. How about other projects? We might have to seek the approval of NEDA again which would further delay the project," Libiran said.

She also said 45 of 108 train cars for the railway system are ready to be imported, pending the completion of the depot.

After previous delays, construction of the project had begun in April 2016.

The 23-kilometer railway system, which will run from North Avenue in Quezon City to San Jose del Monte City in Bulacan, will have 14 train stations that will take 30 minutes to travel end-to-end.

It will be connected to the existing Metro Rail Transit Line 3 (MRT3) and Light Rail Transit Line 1 (LRT1) via a common station along EDSA.

https://www.rappler.com/business/209128-right-of-way-issues-delay-mrt7-completion

NLEX on track to start construction of connector road

NLEX Corp. expects to start construction of the connector road in May next year based on the contractual agreement it entered with the Department of Public Works and Highways (DPWH).

The first section of the project will start from C3 Road in Caloocan City up to Espana in Manila.

NLEX and DPWH earlier agreed to push for an aggressive timeline to move the construction schedule to January 2019 “to ensure early completion of the NLEX connector which is seen as a crucial infrastructure needed to solve traffic congestion in Metro Manila.”

NLEX said the aggressive timeline was in consideration with the joint right-of-way (ROW) program of the DPWH.

The acquisition of the ROW is on track as the DPWH is fully committed to provide the ROW requirements to jumpstart the construction of the NLEX connector project ahead of its original contractual schedule.

“DPWH Secretary Mark Villar even created in 2017 a ROW task force for faster and efficient ROW acquisition and delivery,” NLEX said.

The tollway company and DPWH are working closely for the completion of the project by December 2020, ahead of the original schedule of May 2021.

The NLEX connector road project is an eight-kilometer, all elevated four-lane expressway which would extend the NLEX southward from the end of the NLEX Harbor Link Segment 10 in C3 Road in Caloocan City to PUP in Sta. Mesa, Manila.

The project is expected to provide seamless expressway connection between key growth areas like Metro Manila and North and Central Luzon, and the Clark-Subic corridor.

Some 35,000 motorists, especially cargo trucks, are expected to benefit from the project.

The NLEX connector is one of the first public-private partnership projects awarded by the Duterte administration in 2016.


Read more at https://www.philstar.com/business/2018/08/08/1840505/nlex-track-start-construction-connector-road#qjdby3HTseO05gi0.99

P23-B NLEX connector road project on track

The construction of the P23.302-billion North Luzon Expressway (NLEX) connector road project is on schedule within the first semester of 2019, the NLEX Corporation announced the other day.

This was based on the contractual agreement the tollway company signed with the Department of Public Works and Highways.

According to the agreement, the construction for the first section of the project, from C3 Road in Caloocan City up to España in Manila, should start on May, 2019.

However, both the NLEX Corporation and the DPWH earlier agreed to push for an aggressive timeline to move forward the construction schedule to January, 2019 instead.

This to ensure that the NLEX Connector, a crucial infrastructure to solve traffic congestion in Metro Manila, will be completed sooner.

The aggressive timeline was also in consideration with the joint right-of-way (ROW) program of NLEX Corporation and DPWH.

The acquisition of the ROW was also on track as the DPWH is fully committed to provide the ROW requirements to jumpstart the project ahead of its original contractual schedule, the NLEX Corporation reported. The tollway company and DPWH targets to complete the connector road by December, 2020, ahead of the original schedule of May, 2021.

DPWH Secretary Mark Villar even created a ROW task force last year to hasten ROW acquisition and delivery.

The NLEX Connector project is an 8-kilometer, all elevated four-lane expressway extending the NLEX southwards from the end of the NLEX Harbor Link Segment 10 in C3 Road in Caloocan City to PUP in Sta. Mesa, Manila.

The project will seamlessly link key growth areas like Metro Manila and North and Central Luzon, and the Clark-Subic corridor.

Some 35,000 motorists, especially cargo truck drivers, will benefit from the project as they don’t need to use congested public roads anymore.

The connector road traverses the Philippine National Railways’ alignment.

The NLEX Connector is one of the first Public-Private Partnership (PPP) projects awarded by the Duterte administration in 2016.