THE Build-Operate-Transfer (BOT) Law—formally known as Republic Act (RA) 6957 of 1990, as amended by RA 7718 of 1994—represents one of the most forward-looking laws ever passed by the Philippine legislature. The law liberated the government from the straightjacket of its budget by authorizing the financing, construction, operation and maintenance of infrastructure projects by the private sector—that is to say, the establishment of vast public works with the use of other people’s money.
Since its initial implementation in the late 1990s, we have been enjoying its benefits. With the exception of one or two that have been financed with loans from the government because their internal rate of return was too low for the private sector to take up, the highways, expressways, airports and seaports that now dot the landscape in Luzon, the Visayas and Mindanao are all funded by the private sector.
The law did not only bring huge public facilities into existence without the government spending a single centavo, it also enabled the government to redirect the billions of pesos saved to social development—the establishment, expansion and improvement of social facilities needed by the population, particularly the poor (schools; clinics; livelihood programs; welfare projects; conditional cash transfers; and social safety nets, including unemployment benefits, among others).
But we need a lot more BOT projects to accelerate our national development. That is why the never-ending delays in the bidding out of many BOT projects in the last four years are a serious disservice to the Filipino people. These delayed biddings condemn the people to longer periods of traffic congestion and air and water pollution; and the economy to costly power rates and hours of lost output. The bidding frenzy that now seems to be taking place is obviously an effort to assure the public that the department in charge is, after all, not sleeping on the job. Too late; service delayed is service denied.
Now, there is a problem looming on the horizon. Soon, we shall be at that stage when the operation and maintenance of many of these BOT projects will pass on to the government, as stipulated in the BOT contracts.
Remember the road now known as the South Luzon Expressway, which was built by a private firm under a contract with the government in the 1970s? When the firm was allowed to operate and maintain the road after the contract expired, the homeowners in the subdivisions along the road demanded that it be evicted and that the government take over. They got their wish, but they did not expect the indescribable deterioration that set in after the government had taken over. When the private firm returned soon afterward, it was welcomed with open arms.
Let’s hope the past does not haunt the future. If it does, God help us.
Let us improve efficiency for now and the future. Let us not deny the benefits of the BOT Law to the population.
Image credits: Jimbo Albano
3 comments
In the twilight of his administration, Aquino should start thinking what legacy will he leave behind? Daang Matuwid President? Not with the political instability, inflation, corruption, to name but a few. And he sure isn’t the Infrastructure President. He starts out with great promises of BOT contracts to come for public consumption, to be followed by one delayed bidding after another. So after four years of this disservice we are sentenced to long periods of traffic congestion, air/water pollution, expensive electricity and hours of lost output ruining the economy.
Maybe he’ll be remembered as the No Wang-Wang President.
delays here and everywhere. government wants to know first the benefits that they will get before they act and do their job to give us the infrastructures that we need.
Though the BOT’s intentions are geared towards the betterment of our nation, the numerous delays over the span of 4 years ever since Pnoy took over is not really positively shaping our country. These delays are being caused by the different departments headed by the President’s cabinet members. It’s like they intentionally do it to benefit from either the project itself or from the aspiring bidders.