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JICA allows use of P493-M loan savings for reconstruction


The Japan International Cooperation Agency (JICA) has approved the use of some P493 million in savings from previous loans for other reconstruction work. The Department of Public Works and Highways (DPWH) said this was a sign of confidence due to the greater transparency and the leveling of the playing field in the Philippines’ bidding process. “JICA has granted the DPWH request to rehabilitate new additional roads, bridges and flood control damaged by typhoon ‘Ondoy’ and ‘Pepeng’ using the JICA-funded Post Ondoy and Pepeng Short term Infrastructure Rehabilitation Project (POPSTIRP) balance or savings," it said in a news release on its website. JICA had provided loans for the rehabilitation of infrastructure damaged in 2009 by “Ondoy" and “Pepeng." In May 2010, JICA granted a P5.054-billion loan for 48 flood control projects worth P1.523 billion and 31 road and bridge projects worth P1.576 billion. The loan also allows for reimbursements of 87 sub-projects of flood control worth P428 million and 349 sub-projects of roads and bridges worth P1.527 billion. “Following the cancellation of 19 negotiated contracts when Secretary Singson assumed leadership in July 2010, about P493 million estimated savings from bid award versus original loan allocation were generated to date from the successful open, transparent and competitive re-bidding of these projects," the DPWH said. It said about 38 contract packages worth P1.168 billion worth of flood control component and 31 clusters worth P1.438 billion of roads and bridges component were already awarded to various contractors. The contractors aim to complete their contracted projects on or before September next year, the DPWH said. “The substantial savings is also attributed to the ‘right project, right cost, right quality’ policy of the DPWH Secretary through better selection and identification of projects and good design that would result to right cost estimates," the DPWH said. "To ensure the continued growth of the domestic economy and as agreed with JICA, DPWH vows to pursue fast-track reconstruction and rehabilitation of other calamity-damaged infrastructures using POPSTIRP balance/savings within the loan closing date on September 2013," the DPWH added. - VVP, GMA News

Tags: jica, dpwh
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