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THE World Bank on Wednesday announced that its board
approved a controversial loan to finance the second phase of the National
Road Improvement and Maintenance Project (NRIMP-2).
The Washington-based lender
earlier rejected $33-million worth of contracts, part of the first
phase of the NRIMP, after evidence of collusion and overpricing in
the Philippines’ procurement system. This led to an investigation
by the Bank’s Department of Institutional Integrity.
The bank said the $232 million
NRIMP-2 was approved and will support the improvement of 450
kilometers of national arterial roads and bridges and a
comprehensive road maintenance program through long-term
performance-based contracts and expansion of the national preventive
maintenance program.
The project includes reforms in
the organization and the service delivery processes that will
improve the effectiveness and the integrity of the Department of
Public Works and Highways (DPWH) in managing the road system.
The NRIMP to project has three phases costing about $630
million.
Bert Hofman, World Bank country
director for the Philippines said that the lessons learned from the
investigation enabled the lender to strengthen NRIMP2 with a battery
of stronger anti-corruption measures.
These measure include the use of
an Independent Procurement Evaluator, further enhanced procurement
controls, stronger internal controls and internal audit capacity in
the DPWH, adoption of enhanced business processes and independent
oversight by civil society.
”Beyond building roads,
this project will support long-term measures to help the government
increase efficiency and address corruption in the roads sector,”
Hofman said.
“Improving the quality of roads
will reduce transportation costs, which is important in attracting
investments and creating jobs. Better roads also increase the price
farmers receive for their produce,” he added.
Besides improving roads, Public
Works Secretary Hermogenes Ebdane Jr. said the World Bank will
finance long-term maintenance contracts for a substantial portion of
the Strong Republic Nautical Highway, and provide a substantial
increase in the road maintenance program funded by road users
through the Motor Vehicle User Charge.
--Darwin G. Amojelar
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