THE latest directive of a Cabinet-level project evaluation body regarding the Cebu City Bus Rapid Transit (BRT) project is not a setback, but actually moves the project forward, Cebu City Administrator Nigel Paul Villarete said.
Villarete was reacting to the order issued Wednesday, April 25, by the National Economic and Development Authority Investment Coordination Committee (Neda-ICC) to the Department of Transportation (DOTr) to award the contract for a technical services consultant (TSC).
In a social media post Friday, April 27, Villarete said the TSC "is part and parcel of the requirements under the loan agreements signed in 2014 for the Cebu BRT" project.
"It should have been awarded in 2016 yet. But DOTr, wittingly or unwittingly, had a hard time awarding the TSC's contract," he said.
The failure to award the TSC contract is "the major cause of delay" of the project, Villarete said.
He said the Commission on Audit has issued two Audit Observation Memoranda (AOM) which warned the DOTr about the delay because of its failure to hire a TSC.
The delays, according to COA, have resulted in low availment of loan proceeds and the accumulation of commitment fees amounting to P14.48 million in 2015-2017.
A commitment fee is a fee levied on the undisbursed portion of the loan, payable in the currency in which the loan is denominated.
Villarete, in his post, said the TSC contract is ready for signing.
"The engagement has been approved for award under PS-DBM BAC Resolution No. BAC4-2017-12-01 signed last year, including the approval of (DOTr Secretary Arthur) Tugade. He only needs to sign the Notice of Award which has been pending at his office since late last year. Unless he chooses to defy the Neda-ICC," he said.
He slammed the DOTr for recommending the cancellation of the project and citing the delays as grounds.
"DOTr cites the delays in the project as a reason to cancel. But the delays were caused by the non-engagement of the TSC since 2016," he said.
Villarete said hiring the TSC would open the "floodgates of all other Cebu BRT implementation activities that have been stalled since 2016 and 2017 due to the TSC's absence." "It signals to the project to go ahead at full speed because now, the TSC is there," he added.
The TSC, according to state auditors, plays a critical role in finalizing the DED (detailed engineering design) and in advising the DOTr on key technical matters in the operation of the BRT. (Marites Villamor-Ilano/VoxPop Philippines)