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Unintended delay

The DoTr also categorically stated there are no objection on the concession agreement.



The Department of Transportation (DoTr) yesterday assuaged fears over the supposed deliberate delay in the start of the actual construction of the Bulacan International Airport project.

In a statement, the DoTr said it trusts the wisdom and due diligence in the conduct of the review of the concession agreement on the operations and maintenance of the new airport, currently being undertaken by the Department of Justice (DoJ), at the request of the Department of Finance (DoF), to ensure the said agreement will faithfully serve the interest of the Filipino people.

Pact okay
The DoTr also categorically stated there are no objections on the concession agreement, but merely a clarification is being sought on the phrasing of provisions on material adverse government action for situations where the government deviates from contractual obligation and as such is required to compensate a private entity, as well as “the cap on liability in relation to operational performance and deliverables.”

The need for such clarification is in accordance with “the imperative of ensuring that the contracts we enter into, especially those that shall span for decades, are indeed favorable to the Philippine government.”

Good governance cited
The DoTr said it fully supports initiatives that reduce the risk of future complications wherein contracts are exposed as disadvantageous or, worse, onerous to the government and to the people.
“Ultimately, these are all in adherence to tenets of good governance. No more, no less,” the DoTr statement concluded.

The proponent of the project, San Miguel Corp. (SMC), raised possible delays with the start of its construction.

SMC president and chief operating officer Ramon S. Ang questioned the delay in the groundbreaking of the project that was initially scheduled this month.