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    Can the DPWH deliver?

     

    The Department of Public Works and Highways (DPWH) is probably one of the most reviled government agencies, having been consistently mentioned as among those where graft is pervasive, and where taxpayers’ money is likely to end up in the pockets of the corrupt.

    But certainly an office with the awesome responsibility to build and maintain vital infrastructure, including roads and bridges, that the economy badly needs should adhere to certain standards of performance, or risk more opprobrium.

    With the administration now focused on implementing an ambitious infrastructure program aimed at fast-tracking the modernization of the Philippine economy, the DPWH now finds itself facing the huge challenge of delivering results and proving its critics wrong.

    I received a copy of the annual accomplishment report of the DPWH for 2006 and from a cursory reading, it looks like the agency is making significant strides in infrastructure development.

    In fact, the agency boasts that last year, it posted its best performance in 10 years.

    Well, it’s downright difficult to quarrel with hard figures.

    The agency’s foreign-assisted projects reached a total worth of $464 million, surpassing its target of $393 million for 2006. Among the major completed projects is the World Bank-assisted National Road Improvement Project Phase I covering an initial 984 kms. of national roads and bridges.

    In her 2006 State of the Nation Address, President Arroyo announced the concept of “super regions,” with highways linking the major urban centers. At the end of 2006, DPWH had already completed the planning and preconstruction activities for the rehabilitation and construction of 36 major national roads in the Northern Luzon agribusiness quadrangle, Luzon urban beltway, central Philippine regions and the Mindanao agribusiness regions.

    In addition, the DPWH completed a total of 925 nationwide flood-control projects worth P3.55 billion.

    In support of the government’s land-reform and agricultural-development programs, the agency also improved and constructed some 789 kms. of farm-to-market roads. It is also taking an active role in the government’s social infrastructure program, constructing thousands of functional classrooms, multipurpose and science laboratory buildings, and other facilities nationwide totaling P2.17 billion.

    These physical accomplishments are attributed by the agency to better planning, monitoring and evaluation; standards development and quality control; improved procurement system, financial management, and internal controls and audit.

    Besides these, the agency takes pride in its sustained compliance with good governance. In fact, the Presidential Antigraft Commission has ranked the DPWH the eighth among 70 agencies that have effectively developed and implemented anticorruption compliance measures.

    On the other hand, it cannot be denied that the DWPH faces daunting problems. Among these are nontransparent bidding and improper procurement procedures; overpriced bids: uncontrolled project costs; and poor absorptive capacity.

    If the current DPWH management is able to put in place the mechanisms for dealing with these problems, then I see no reason why the agency cannot do better this year, dispel its image as a graft-ridden agency, and regain the trust and confidence of the public.  

    Agriculture on the rebound

    Meanwhile, Philippine agriculture, which contributes a fifth to the national economy, grew by 3.88 percent last year, narrowly missing its projected 4-percent target, mainly due to a series of supertyphoons that hit the country. But compared to 2005, when agriculture grew by only 2.31 percent, last year’s performance is not bad at all.

    This year, the Department of Agriculture sees better prospects for the farm sector, with ongoing initiatives to boost farm and fisheries production and raise rural incomes combining to expand agricultural growth to between 4 percent and 5 percent and an even better 7 percent to 8 percent in 2008.

    The DA rosy forecasts are premised on the government plans to significantly raise public spending on rural infrastructure, mainly on irrigation and postharvest facilities, as well as on seed technology, to increase farm yields and minimize crop losses arising from inadequate storage facilities.

    The optimism is also fuelled by increased foreign investments in the farm sector, among them 19 agribusiness projects from China totaling P240 billion. The Fu Hua Co., for instance, wants to invest $3.83 billion in one million hectares of land in the country for the cultivation of hybrid rice, corn and sorghum, while the Nanning Yongkai Industry Group will set up four bioethanol plants in the country.

    These projects came on the heels of an investment mission to China led by Agriculture Secretary Arthur Yap after the successful state visit of Mrs. Arroyo last year. Yap was able to obtain commitments from the Chinese to finance various projects in the Philippines, including the setting up of small mobile ice plants and transport facilities to municipal fishery cooperatives and associations. China’s largest agricultural investor, the Beidahung Heilongjiang Group, will also bring in investments worth P43.4 billion, bringing to P240.1 billion the value of all agribusiness deals in 2007 between the Philippines and the emerging economic titan.

    The DA is also focusing on several antipoverty and antihunger programs that will benefit an initial 400,000 poor families. The Gulayan ng Masa project allows the unemployed to engage in backyard vegetable-growing. Manukan para sa Masa allows families to obtain food from poultry-raising, while Isdaan para sa Masa involves raising catfish as a source of food and income. The Barangay Food Terminal project, which has already benefited nearly 120,000 families, will further expand with more outlets to be set up this year.

    All this shows the agriculture sector is poised for better times this year, for as long as the country is spared from destructive typhoons and the DA exercises prudent management.

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