Take-off problems

While our nation is in the middle of trying to contain the spread of the coronavirus disease 2019, or COVID-19 pandemic, we are comforted by the fact it has not stopped the other vital priorities from being pursued in spite of this public health crisis. No less than Department of Education (DepEd) Secretary Leonor Briones eloquently asserted this last Monday when she ceremonially led our 22.5 million of Filipino schoolchildren on the first day of “blended learning” during this COVID-19 pandemic.

“We declare our victory over COVID 19 – the destroyer of our lives and destroyer of our economy and of our society. But we will not allow COVID-19 to destroy our children’s education and their future,” Briones declared.

Age-wise, the 79-year old DepEd Secretary is most senior members of the Inter-Agency Task Force on the Management of Emerging and Infectious Diseases (IATF-MEID) that recommends to President Rodrigo Duterte the community quarantine guidelines and other anti-COVID measures.

After two postponements, originally scheduled in June 1 and later August 24, the opening of school year 2020-2021 has finally pushed through. This was by virtue of a law signed by President Duterte that allowed him to re-set school opening due to the prevailing COVID-19 pandemic.

Giving a pre-recorded message on the first day of the no face-to-face schooling, President Duterte echoed the sentiments of the DepEd Secretary: “Indeed, nothing can get in the way of the instruction and formation of our learners, not even a pandemic.”

The same cautious but go-go spirit of President Duterte amid the COVID-19 pandemic have serve to inspire the rest of the bureaucracy, including the leaders and members of the 18th Congress. This is especially on the need to “reset, rebound, recover” theme of the President’s proposed 2021 budget now going through Congress and other priority economic bills of the administration to bring the Philippine economy back on its growth track.

A vital franchise bill earlier approved at the House of Representatives is expected to be approved this week at the Senate. This is the franchise application of San Miguel Aerocity Inc. to construct a domestic and international airport in Bulacan. Designed not only to decongest air traffic but also to boost economic growth outside Metro Manila, the P735-billion project will be put up on a 2,500-hectare land in the municipality of Bulakan at no cost to the government.

Sen. Grace Poe, chair of the Senate committee on public services, sponsored last week the franchise for approval of this “airport city” in Bulacan. Sen. Bong Go, who co-sponsored the franchise bill, reiterated the need for a new airport to help decongest Metro Manila’s traffic and provide employment to Filipinos, especially now with the pandemic.

While this ‘”airport city” project is finally on the take off stage after stalled by various issues in the past, there is now brighter hope for the improvements in the existing capacity of the Ninoy Aquino International Airport (NAIA). But wait, the principal contractor of the P107-billion NAIA expansion project has reportedly announced of its plans to tap into the capital market to raise up to P8 billion in fresh capital.

The contractor, Megawide Construction Corp. headed by its chairman and chief executive officer Edgar Saavedra made this announcement “to fund its growth program which includes the redevelopment” of our country’s premier airport in Metro Manila. In its public disclosure, Megawide claimed they are targeting to raise P3 billion from the issuance of new preferred shares with an oversubscription option of up to P5 billion.

While Saavedra’s statement was meant to shore up Megawide’s image to secure more capital, it has also become the smoking gun for its questionable Public-Private Partnership (PPP) deal. The expansion of the NAIA in exchange for this 25-year concession was awarded to Megawide after it won the public bidding for the operation of the country’s biggest and busiest airport. Megawide’s consortium partner, GMR Group of India, has reportedly backed out from the NAIA expansion, further compounding the company’s equity issue.

In its public disclosures of its present financial state, Megawide is clearly in the bad shape – raising the red flags of concerned government agencies. Megawide reported for the first half of 2020 alone, it has suffered losses amounting to P398 million. Its consolidated revenues had dipped by a whopping 21 percent.

These developments could not come at the most inopportune time when party-list Congressman Jericho Nograles of the Puwersa ng Bayaning Atleta (PBA) has been questioning the NAIA expansion project awarded to Megawide because the company allegedly failed to comply with the timelines for submission of documentary and equity requirement prescribed by law. Nograles stumbled into the information during the House budget hearing on the Department of Transportation (DOTr).

According to Nograles, Megawide was red-flagged by the Investment Coordination Committee (ICC) and of the National Economic Development Authority (NEDA) and the PPP Center. Nograles alleged that Megawide was awarded with the NAIA expansion contract even without clear guarantee that the company will have the money to complete the project.

Nograles is the same congressman who exposed the anomalous maintenance service contract for the Metro Rail Transit (MRT-3) entered into by the previous administration of the DoTr and the Korean firm Busan Universal Rail Inc. (BURI). Eventually, the contract was terminated.

With its liquidity issues, Megawide’s other multi-billion peso PPP projects are imperiled, including the full completion of its P12.8 billion project with DepEd. After its successful completion of the new Cebu international airport two years ago, Megawide has apparently spread its resources too thinly to other mega projects under PPP.

These very serious financial problems could abort the take off for the nth time of the NAIA expansion project.