COVID SNAGS BIG TICKET PROJECTS

Big infrastructure projects in Western Visayas face delays as coronavirus disease (Covid-19) pandemic continues to challenge the country and the region’s economic and business landscape.

Two infrastructure projects that were slated to start this year might be stalled, according to political and business leaders.

In an investment forum held on Dec 9, 2020, Senator Franklin Drilon said he is not optimistic that the much-awaited Panay-Guimaras-Negros project can commence construction under the Duterte administration.

“Unfortunately, while it was included as among the ‘Build Build Build’ projects of this administration, after four years, it is still on the drawing board,” Drilon said.

According to Drilon, the Chinese government withdrew its funding commitment to the project and the government is currently talking with the Korean government as an alternative.

“The project is still on the feasibility-study stage, and we are not optimistic that construction can start during this administration,” he added.

Drilon underscored the need to fund and start the construction of the bridge project to address the lack of connectivity in transporting agricultural products between Panay, Guimaras, and Negros.

The Panay-Guimaras Bridge – which will span Leganes, Iloilo and Buenavista, Guimaras; and the Guimaras-Negros Island Bridge from San Lorenzo, Guimaras to Pulupandan, Negros Occidental – was estimated to cost around P9 to P14 billion, Drilon added.

Before the pandemic hit the country, the feasibility study of the Panay-Guimaras-Negros bridge funded by China was supposedly nearing completion.

Earlier, the National Economic and Development Authority in Region 6 expressed optimism that the project will push through despite the funding challenges.

Meanwhile, another big-ticket project proposed by the Enrique Razon-led International Container Terminal Services, Inc. (ICTSI) to upgrade Iloilo ports face delays also due to the pandemic.

ICTSI Executive Vice President Christian Razón Gonzalez said the project will possibly be turned over to their firm in the last quarter of 2021 instead of this year or early next year.

Gonzalez said the Philippine Ports Authority has already accepted their unsolicited proposal to improve the port and they are waiting for the National Economic and Development Authority (NEDA) to prepare for the Swiss challenge.

The Swiss challenge will gather proposals from other firms that might be interested in the port development project. If another proponent offers a better deal, ICTSI will be given the chance to match it in order to bag the contract.

Last year, ICTSI has announced its plan to invest P8.7 billion to upgrade the Dumangas port in Iloilo province.

The upgrading will include maximizing its big ship capability; installing ship-to-shore gantry cranes; continuously upgrading yard capacity aligned to traffic studies; and building a terminal for cruise ship passengers, to meet the objectives of the National Tourism Development Plan.

ICTSI, one of the leading container port operators in the world, first proposed the project in partnership with the Philippine Ports Authority (PPA) in 2018.

In January 2020, the Department of Transportation requested that the unsolicited proposal be changed from a joint venture to a build-operate-transfer scheme.

A month after, ICTSI submitted its new proposal to the PPA, which then issued the letter of acceptance in October.

By November, the PPA board approved to forward the proposal to NEDA’s Investment Coordination Committee for review and approval.

The NEDA then will accept and prepare for the Swiss challenge.

Gonzalez said they expect NEDA-ICC to act on the proposal in 37 days while it will take another 217 days for the Swiss challenge and the right to match to be completed.

The notice of award and publication of the bidding results will take another 43 days, after which, the winning firm will wait five days more for the contract execution.

Gonzalez said they remain bullish on the project despite the delays, citing the big gap in port logistics in Visayas compared to Luzon and Mindanao.

He also urged Iloilo leaders to continue working together to realize the project.

 

BACKBONE

Despite the crippling effects of the coronavirus disease (Covid-19) to the robust economy of both the city and province of Iloilo, Ilonggo leaders and businessmen are hopeful there is light at the end of the tunnel and Iloilo’s economy will soon bounce back.

Drilon said he is confident that Iloilo will soon recover from the Covid-19 pandemic as he pointed out agriculture and tourism as the backbones of the economic strategy and growth for Iloilo and Region 6.

“As we look to the future, our development strategy is simple, in my view. We should pursue the twin goals of reducing poverty and at the same time achieve high and sustained economic growth. We must create an environment conducive for investment. More investments mean more jobs. More jobs mean less poverty,” he said.

The Ilonggo senator added that massive infrastructure developments in the last ten years helped Iloilo position itself to be resilient despite the pandemic.

“I have no doubt that today, Iloilo is in a position to recover once this pandemic is over. Why? Because we are prepared. We have constructed Iloilo International Airport, Iloilo Convention Center, Iloilo Esplanade, the ten-lane Senator Benigno Aquino Avenue and now we are constructing four fly-overs,” he added.

Drilon also announced the proposed P800-million budget for the construction of the North Iloilo River Avenue in 2021.

Once completed, the road network will be a four-lane, 5.5 kilometer highway, complete with an esplanade and a bike lane and will link to Megaworld in Mandurriao district to the neighboring town of Oton as part of Metro Iloilo.

Aside from this, Drilon said the P11.2 billion Jalaur Multipurpose Project can be considered as the game changer for the economic development of Iloilo.

The multibillion infrastructure project is now almost halfway in its completion and is expected to be finished in two years.

The project will benefit the agriculture sector in Iloilo with the dam providing a year-round irrigation facility to 32,000 hectares of farmlands in 25 municipalities in Iloilo and double the rice production of the farmers.

The two-day forum entitled “Iloilo Investment Forum” which started on Wednesday was organized by the Iloilo Economic Development Foundation, Inc (ILEDF) together with the Provincial Government and the Iloilo City Government. (ERS)