This refers to Conrado R. Banal’s columns titled “No pause for alarm” (Business, 6/6/15) and “Claim to flame” (Business, 6/16/15).
In his column last June 6, Banal opined among others about what he calls the “underspending record in the first quarter” of the Department of Public Works and Highways. Banal reiterated this point in his June 16 column, adding that the “DPWH had to cram on possible projects” that could be presented to President Aquino, and DPWH officials had to hold a meeting to come up with “instant projects.”
Banal also questioned how the DPWH computed its “savings.”
For Banal’s information, we do not create “instant projects,” but we call the attention of our regional directors and district engineers to hasten the implementation of projects listed in the General Appropriations Act (GAA).
Also for Banal’s information, P111 billion—from the P354-billion DPWH allotment released by the Department of Budget and Management for the first quarter of 2015—has been obligated. The amount translates into a 114-percent increase in the utilization rate of DPWH funds, compared to the P51 billion—out of the P195-billion allotment—incurred during the same period in 2014.
We have to conduct preconstruction activities on over 10,000 projects nationwide upon the release of the National Expenditure Program for the year so that upon approval of the GAA or national budget, we can already effect the contract award and start construction works.
Disbursement or actual payments released during the first quarter of 2015 reached P34 billion only because payment (spending) can only be done after the contractors submit their billings for the work done.
With regard to the so-called savings of the DPWH, pursuant to Section 70 of the General Provisions of the GAA, the tern “savings” is defined, among others ways, as the “difference between the approved budget for the contract and the contract award price.” This means that if the winning contractor offers bid lower than the approved budget for the contract, the difference will form part of the savings.
Through the reforms we have instituted in the department’s procurement process, allowing full transparency, competitive bidding and reduced indirect costs of projects, the government was able to realize P39 billion in savings from the biddings alone since July 2010 up to the present.
We hope this will enlighten Banal and the reading public.
—ROGELIO L. SINGSON,
secretary, Department of
Public Works and Highways