Japan OK for P6.2-B Iloilo airport project sought

Transportation and Communications (DoTC) has asked the Japan Bank for International Cooperation (JBIC) for its concurrence in the construction of the multi-million New Iloilo Airport Development Project (NIADP).

DoTC Secretary Leandro Mendoza said the project costing R6.2 billion is under JBIC-official development assistance (ODA) loan agreement No. PH-P214.

In a letter to Mitsuru Taruki, JBIC chief representative in the Philippines, Mendoza told the Bank to refrain from warning the DoTC that “the Bank may opt not to finance the contract… if the Department rejects a bid for reasons that are not, in the opinion of the Bank, in accordance with the Bank’s Procurement Guidelines.’’

Mendoza said this would constitute coercion, which does not sit well in this situation, especially since this is not a JBIC-DoTC matter only but a government-to-government agreement which involves Japan’s Ministries of Finance, Foreign Affairs, and Economy Trade and Industry and its Philippine counterparts.

The Bank wants Mendoza to conduct a new bidding for the project with the Taisei-KajimaShimizu Corporation as one of the bidders.

The consortium was disqualified in the bidding conducted by the DoTC early this year after the Japanese Ministry of Land, Infrastructure, and Transport (MLIT) suspended it for the involvement of its official in a bribery scandal in Japan.

The pre-qualification, bids and awards committee (PBAC) headed by Assistant Secretary Art Maglangue said one of its partners, Kajima Corp., was involved and convicted in a bribery-scandal in Japan.

After Kajima Corp.’s disqualification, the DoTC proceeded with the bidding for the Iloilo airport with only two participants, namely, the Obayashi Corp. that includes the Sumitomo Construction Co., Ltd-Sumitomo Corp. Joint Venture (OSS JV), and Takenaka Corporation which includes Takenaka Civil Engineering and Construction Co., Ltd-Otochu Corporation Joint Venture (TTIJV).

In asking for a re-bidding of the project and the inclusion of Kajima as one of the participants, JBIC said Kajima was disqualified in Japan but not in the Philippines and that is only a domestic measure.

Mendoza stressed that the most important issue at hand is that a former official of the Kajima Corp. was convicted of bribery that resulted not only in that person’s incarceration but also the suspension of Kajima Corp. during the period when the bidding for the contract was conducted.

“The Bank should not take this bribery scandal lightly and for us to disregard this matter altogether. The Bank’s contention that the Philippine government’s Anti-Graft Policy should not be operationalized by DoTC and recognized by the Bank as objective before it can be valid is equally disturbing.

“The DoTC has not penalized or punished Kajima Corp. for violation of Anti-Graft and Corrupt Practices Act as you claimed. It is a derived conclusion that their conviction in Japan gives rise to the question of the propriety allowing them to participate in a bidding of a contract, at the time their suspension was on in Japan, going against the Statement of Policy in the Anti-Graft and Corrupt Practices Act,’’ Mendoza pointed out.

He added, “more than anything, these overtures are already stepping on the Sovereign Rights of the Philippine government to determine what is good and what is not good for the country. In the exercise of these Sovereign Rights, the DoTC, in order to protect the interest of the Philippine government, took a decision that will be most advantageous to the Philippine government and show its consistent abhorrence of the graft and corrupt practices of the applicant contractor.’’

JBIC is financing R5.250 billion of the project cost. The balance will be shouldered by the Philippine government.

The National Economic and Development Authority (NEDA) Board approved the airport construction middle of last year.

Meanwhile, Iloilo Governor Niel D. Tupas Sr. asked the President of her kind assistance for the immediate and speedy implementation of the NIADP.

The NIADP will be a domestic trunkline airport of international standards located at the Sta. Barbara-Cabatuan site and will replace the existing airport in Manduriao. (PNA)