The winning bids of Chinese construction firms for two roads connecting Negros Occidental to Oriental to be funded through a World Bank loan had been rejected, prompting the Philippine government to instead foot the bill for the projects to begin.

But Rep. Ignacio Arroyo Jr. (Neg, Occ., 5 th district) yesterday said Budget and Management Secretary Rolando Andaya Jr. has announced that the WB has decided to continue its plan to fund the $232-million road building loan to the Philippines .

Andaya said the country director of the WB, Jean Claude Maryse Gautier, has assured him that the suspension of the WB loans for the National Roads Improvement and Management Program would be lifted soonest, and that Philippine “national competitiveness” rules will henceforth be used.

Phase 1 of the NRIMP implemented by the Department of Public Works and Highways was originally aimed to upgrade about 530 kilometers of national roads, including the Hinobaan-Basay section of Kabankalan-Basay road and the San Enrique-Vallehermoso Road .

Rep. Arroyo said part of the San Enrique-Vallehermoso Road that was to be covered by a WB loan is located in his district and construction started a few months before the May polls with Philippine funds.

He said the project for WB coverage was chosen during the term of his predecessor, former Rep. Jose Apolinario Lozada.

The project was to cover 5 kilometers on the San Enrique side in Negros Occidental and 5 kilometers in Vallehermoso, Negros Oriental, and the first bidding was won by the firm, China State , the second bidding by China Road and Bridge Corp., and the third by China Wuyi and China Road , who won the bid together.

Arroyo said he did not know why the WB rejected the winning bids as this was conducted by the DPWH.

Since the road is really needed, it is now being undertaken with Philippine funds by Deluna Construction that began work four months before the May polls, he said.

Rep. Genaro Alvarez (Neg. Occ., 6 th district) on Tuesday said that in 2004 the WB had rejected a Philippine loan for the 25 kilometer Hinobaan-Basay section because of alleged collusion in the bidding won by the firm China Road and Bridge Corp.

The bidding was done at the DPWH central office in Manila , he said, so the construction of the 23 kilometer section from Hinobaan proper to Barangay Sangke was continued with Philippine funds.

The Philippine government and WB, in a joint statement issued by Malacañang yesterday, said that, contrary to reports, the Bank has not suspended any loans for the NRIMP.

One-tenth of the loan for the first phase, amounting to $33 million, was canceled due to failed biddings in three road contracts. The government and the Bank instituted measures to address bidding problems in future, the statement said.

The second phase, amounting to $232 million, is to be deliberated by the WB executive board upon submission of additional information requested when the Board first discussed the loan proposal last month, the statement added.*CPG

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