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A broader look at today’s business n
Sunday, July 29, 2018 Vol. 13 No. 288
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CHALLENGE ACCEPTED ‘Build, Build, Build’ fulcrum
DPWH squarely faces burden of high expectations, cashbased budget, labor shortage
T
By Lorenz S. Marasigan
HE Department of Public Works and Highways (DPWH) is now working under a lot of pressure, after President Duterte delivered a mild rebuke to the agency for delivering infrastructure projects at a pace that, despite all the frenzied activity, he deemed as slow. That load is about to get heavier as the Philippines shifts to a cash-based budget in 2019.
PUBLIC Works Secretary Mark A. Villar (right) inspects the badly damaged middle portion of the Otis Bridge in Manila, which was ordered closed last month after government engineers warned of its collapse. Thousands of vehicles— including an average 6,000 heavy trucks from the port area—use the bridge daily. ROY DOMINGO
precisely to ramp up expenditures to keep pace with the timeline for public works.
PARTICIPANTS to the DPWH-Tesda skills accreditation program listen to a mentor in one recent session. CONTRIBUTED PHOTO
Under the sweltering heat of the sun in Silang, Cavite, Secretary Mark A. Villar recently admitted that he expects to handle more pressure next year with the change of fiscal policy in terms of budget allocation. “With the cash-based budget, we will be under more pressure to disperse more projects out of the pipeline,” he said, wiping beads of sweat from his face, eyes squinted. Implementing a cash-based budget means that government contracts for projects and programs intended for the fiscal year should be fully delivered, inspected and accepted by the end of the fiscal period. This means that allocations for projects that will not be started during the fiscal year will be reverted to the National Treasury, and will not be reallocated for the year after—the process being practiced under the obligations-based
Road connectivity budgeting. Villar’s office has received a total budget allocation of P555.7 billion for 2019, quite a jump from the P441.8-billion budget for 2018. It is a sum that is understandable, given the huge burden placed on his office, as the fulcrum of the ambitious “Build, Build, Build” infrastructure program. For all of Villar’s reputation as an action man who began his term at DPWH completing longdelayed projects from past administrations, he received the equivalent of a national tongue lashing from President Duterte earlier this month. The impatient president said he will hold the public works chief accountable for any delay or failure in the delivery of vital infrastructure.
Highest obligation rate
VILLAR noted, however, that the agency has been doing well in
PROVING that the construction sector is gender-neutral, a worker tries her hand at running heavy equipment. CONTRIBUTED PHOTO
terms of obligating projects. Especially in 2017, when his office successfully clocked in a 92-percent obligation rate. “Our obligation last year reached 92 percent, and we’ve been increasing our disbursements every year,” he said. Based on the latest 2018 report of the public works depart-
ment, the said obligation rate— reaching P621.9 billion—was the highest in seven years from 2011. “We know that for this year, we are ahead in terms of infrastructure at 42 percent increase yearon-year—that’s a big increase, but it’s not perfect, so we are still improving the system,” Villar said. No less than Budget Secretary
Benjamin Diokno also defended the DPWH on Thursday, when he was asked why the agency was getting a huge budget increase despite the perceived “slowness” in the past year. Diokno said, given the formidable challenge to shepherd the entire infrastructure program, it is sheer folly to punish DPWH by cutting its budget when it needs
SINCE the new administration came in to power in 2016, the public works department under Villar’s helm has effectively increased road connectivity, completing road development projects across the Philippines. It has widened 1,908 kilometers of road, constructed 328 km of by-pass and diversion roads, filled in a gap of 398 km in between national roads, and built 1,316 km of access roads leading to airports, seaports and tourism arteries. Southern Tagalog took the lion’s share of the roads widened by the agency with a total of 298.33 km of roads, while Northern Mindanao was the top region with the most number of by-pass and diversion roads built at 97.13 km. Soccsksargen had the highest number of missing gaps filled at 81.89 km, while Western Visayas had the most number of access roads built at 233.61 km. Continued on A2
BIOPESTICIDES ARE COMING
Prepping PHL farm produce for the world
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By Jasper Emmanuel Y. Arcalas
F the Philippines wants to ensure that its farm produce is robust and meets the pesticide residue limits set by its trading partners, then it should consider using biopesticides. So says the man at the helm of Israel-based bio-agri technology firm STK. PESO EXCHANGE RATES n US 53.3540
According to STK CEO Guy Elitzur, biological solutions would solve not only the efficacy issues of crops, but would also leave produce with much lower chemical content. “We are in an age where farmers are being concerned [with] other parameters not only in terms of efficacy. [For example] they are now pressed by food companies and supermarkets in the US and in Europe, as well as countries exporting to these countries, to use
less and less chemicals,” Elitzur told the BusinessMirror in an interview. “[They are pressed] to have better MRL [maximum residue limit] performance, better quality produce, and also in terms of improving yield,” Elitzur added. The Food and Agriculture Organization (FAO) defines MRL as the maximum concentration of a pesticide residue legally permitted in food commodities and animal feeds.
This means that if a certain chemical compound in pesticides used on any produce exceeds a specific MRL standard (usually measured by parts per million), then the produce will not be allowed to enter the importing country. MRL is a sanitary and phytosanitary measure imposed by countries to ensure the safety of farm produce sold in their domestic markets. Continued on A2
STK CEO Guy Elitzur: “We are trying to offer products that are high-performance and science-backed that would be able to face any performance of chemical products.”
n JAPAN 0.4797 n UK 69.9524 n HK 6.7987 n CHINA 7.8641 n SINGAPORE 39.1417 n AUSTRALIA 39.3539 n EU 62.1254 n SAUDI ARABIA 14.2266
Source: BSP (July 27, 2018 )