DOTC, CAAP air concern over $2-million consultancy deal

MANILA, Philippines - Officials of the Department of Transportation and Communications (DOTC) and the Civil Aviation Authority of the Philippines (CAAP) have expressed concern over the expensive contract forged by the DOTC with an American civil aviation expert to help in the country’s effort to regain Category I status with the United States’ Federal Aviation Authority (FAA).

Highly-reliable sources at the DOTC Civil Aviation Cluster said that the $2-million consultancy agreement forged with retired Brig. Gen. Tim Neel, a former FAA executive and the owner and managing director of Tim Neel & Associates, LLC, seemed unreasonably high for the level of assistance that will be provided.

The additional $2-million cost for Neel’s services, it was noted, will be another huge expense in the already gargantuan costs incurred by the CAAP and DOTC just to regain Category 1 status with the US FAA.

Sources said that the $2 million to be paid Neel will likely be taken from the country’s International Civil Aviation Organization (ICAO) trust fund, which has already been depleted of some $12 million.

The country is faced with the US FAA downgrade and the ICAO issuance of a significant safety concerns (SSC) finding on the country’s civil aviation systems.

Worse, sources warned of an “escalation” of provisions in Neel’s proposed contract that could bring his services to cost as much as $6 million.

Glicerio Sicat, DOTC Undersecretary for Civil Aviation and Railways, said that the contract with Neel was not yet finalized.

“The CAAP is still negotiating the contract,” Sicat told The STAR in a phone interview last week.