The Supreme Court has found no merit in the petition of China National Machinery and Equipment Corp. Group (CNMEG) to stop a Makati Court from hearing a petition to void their stake in the $503-m Northrail Project.

CNMEG’s petition stated that Judge Cesar Sta. Maria of Makati Regional Trial Court Branch 145 erred hwen he ordered the petitioner to appear and explain the detail of the Northrail contract since it had “no jurisdiction over the person of herein petitioner and over the subject matter of the said case.” Further, it claimed that allowing the proceedings at the Makati court would “disrespect the sovereignty of the People’s Republic of China.”

CNMEG’s counsels culled Republic Act 8975, which prohibits lower courts from issuing restraining orders and injunction on government infrastructure projects. Moreover, the counsels said that the “Petitioners stand to suffer grave and irreparable injury by being compelled to answer private lawyers’ unjust and baseless claims. Petitioner has already commenced its duties and responsibilities under the Northrail project and invested its precious time, skills, industries and finances for the said project.”

The SC’s ruling upholds a previous decision by the Court of Appeals (CA) last year, wherein they found no merit in CNMEG’s claim that as a state-owned firm of the People’s Republic of China, it enjoys diplomatic immunity.

CA’s decision reads: “[The CNMEG] must request the Foreign Office of a state where it is sued to convey to the court that it is entitled to such a privilege. In this country, the practice is for the foreign entity to first secure an executive endorsement of diplomatic immunity. The bottom line is, (the request) must come from the DFA (Department of Foreign Affairs) which is the proper government agency with administrative competence to perform the task associated with diplomacy and foreign relations.”

Source:  Philippine Star May 13, 2009

To read more about the Northrail Project, click here.

A P284.13-M contract was awarded by DepEd to JMC in 2007 for “fortified noodles with fresh eggs”, and later in 2009, an additional P427.21-M for “fortified noodles with fresh eggs and malunggay”.

Results of a study on the noodles conducted by a testing agency in Vietnam revealed that “DepEd’s fortified instant noodle with fresh egg is made of flour and does not contain any fresh egg but mere egg powder.”

Bureau of Food and Drugs (BFAD) records as of 19 February 2009 also showed that JMC has no record of license to operate.

As of 20 March 2009, 84.56% of the project has been accomplished. In detail:

Clearing/Removal of Existing Structures and Obstructions: 95%

Excavation: 100%

Backfiling: 98%

Forms and scaffolding: 100%

Reinforcing steel bars: 100%

Concrete works: 99%

Masonry works: 90%

Plastering works: 68%

Ceiling works: 0%

Roffing works: 87%

Plumbing works: 75%

Drainage system and Catch Basin: 0%

Electrical Works: 85%

Painting works: 0%

Railing and fire exit: 65%

Doors and windows: 60%

The COMELEC identified the 8 foreign firms as:

• Total Information Management and Smartmatic (US-based)

Smartmatic, along with Avante, handled the atuomated alections in the ARMM in August 2008.

• Avante International Inc.

• Syrex Corp. and Scantron (US-based)
• DVS Philippines and Samsung (South Korea0based)
• Indra Systems SA (Spain-based)

Indra’s most recent elections project was the polls in Galicia, Spain last March 1. It has also provided IT management tools to airports and companies in Europe.

• Universal Storefront Services Co. and Sequoia (US-based)
• All Data Hub International Inc.
• Gilat Satellite Networks Ltd. (Israel-based)

COMELEC has also identified the 2 local firms as:

• AMA Group Holdings Corp. and ES&S International

AMA Group is known as one of the pioneer IT educational institutions in the country. Its partner, US-based ES&S International has supplied IT solutions and polling machines in elections in the US and UK.

• Mega Data Corp.

Mega Data Corp. has supplied IT solutions to government agencies such as the LTO and NBI, as well as major banks. It also designed the Botong Pinoy program, a computerized voting system which uses three stages of verification to eliminate fraud.

Source: PDI, March 27, 2009.

The operations and maintenance of the project, which will link the Diosdado Macapagal Airport (DMIA) at the Clark Freeport to Metro Manila, is set to be bid out to the private sector.

Measures have been put in place to fast track the railways project. CNMEC, the Northrail contractor, has agreed to adopt a simultaneous, segmental construction methodology in order to meet the schedule. Qualified Filipino engineering contractors and local supplies will be tapped to hasten the process.

Source: Philippine Star, April 1, 2009.

The increase in prices of inputs from the time of apprival to the start of project implementation was cited as one of the reasons for the cost overrun, as explained by Roderick M. Planta, the Director of NEDA’s project monitoring staff.

The total cost overruns for 19 ODA-funded projects will reach a total of P28.82B, NEDA explained.

10 other projects needed P14.5B in additional funding, but were not granted because their ODA packages have since been closed.

Source: PDI, April 2, 2009.

According to Cabinet Secretary Silvestre Bello III, the loan is allotted for the construction of fences for the road right of way, reconnection of the Paco Station building, and “side expenses”.

As per development regarding the North Rail line, six of the nine stations will be ready for inauguration in April.  By May, the new diesel-powered trains will be operational, and the Calamba-Bicol line will also be ready.

Source: PDI, March 31, 2009.

• Bureau of Internal Revenue
• Bureau of Customs
• Department of Public Works and Highways
• Land Transportation Office
• Philippine National Police

Three other agencies were identified as “next in line”:

• Department of Environment and Natural Resources
• Department of Agrarian Reform
• Department of Health

The list was based on the Integrity Development Review, a one-year study conducted by the Ombudsman. The study based the vulnerability of government agencies to corruption on the nature of transactions and the type of work they perform.

The study also included proposed action plans and strategies to combat the problem. According to the Ombudsman, some were already being implemented in several agencies. In the BOC, “face to face contact between examiners and brokers during cargo examinations” has been decreased, and warehouse entries and alert systems have been computerized. In the DPWH, an “online complaint desk” has been created.

Source: PDI, March 24, 2009.

So far, six companies, including several foreign groups, have expressed an interest in supplying the voting machines. The process of selecting the supplier will begin on Friday, March 27.

Several lawmakers are still eyeing the retention of manual counting, at least in the local level. A “companion bill” calling for manual counting has been filed in the House of Representatives, and is scheduled for deliberations on April 13.

Source: Philippine Daily Inquirer, March 24, 2009.

The Commission on Elections (COMELEC) has published an Invitation to Apply for Eligibility and to Bid (IAEB) on pag B8 of the Philippine Daily Inquirer, last March 16, regarding the automation of the 2010 National and Local Elections.

The IAEB refers to the procurement of counting machines, including the supply of ballot paper; electronic transmission services using public telecommunications networks; training;  technical support; warehousing deployment; installation; pull-out; systems integration, and overall project management to be used in the Automation of the Counting, Transmission and Canvassing of Votes for the May 10,  2010 Synchronized National and Local elections.

In detail:

Component 1: Paper-Based Automation Election System (AES)

1-A. Election Management System (EMS)

1-B. Precinct Count Optical Scan (PCOS)

1-C. Consolidation/Canvassing System (CCS)

Component 2: Provision for Electronic Transmission of Election Results using Public Telecommunications Networks

Component 3: Overall Project Management.

Bid documents may be obtained from March 18, 2009 to March 25, 2009 during regular hours from the SBAC Secretariat, Information Technology Department, COMELEC, 7th floor, Palacio del Gobernador, Intramuros Manila. Bid documents will be released upon payment of a non-refundable amount of 1,000,000.00 pesos (one million pesos), to the Cash Division, Commission on Elections. Payments can be made in cash or Manager’s/Cashier’s Check, payable to the “Commission on Elections”.

A Special Power of Attorney is required if the prospective bidder assigs a representative to secure the bid documents.

Pre-Bid conference is scheduled March 27, 2009 at 10AM at the Session Hall, Commission on Elections, 8th Floor, Palacio del Gobernador, Intramuros, Manila.

Deadline for submission of the sealed appplication to the SBAC shall be at 10AM on April 27, 2009  at the Session Hall, Commission on Elections, Palacio del Gobernador Condominium, General Luna St.  Intramuros, Manila. The sealed bid envelopes shall be opened at the same time, date and place.

Bids shall be accompanied by a Bid Security of 1% of the Approved Budget for the Contract (ABC), or a total of 112,236,184.00 pesos. This can be paid in cash or Manager’s Check, cashier’s check, bank draft or irrevocable letter of credit in favor: “The Commission on Elections”.

The COMELEC reserves the right to:

• reject any or all of the bids
• waive any formal defect contained therein
• accept the lowest calculated responsive bid that is most advantageous to the Commission
• review the qualifications of the bidders after the bidding and before the contract is executed.

Should such review uncover any change in the situation of the bidder to materially downgrade the substance of such statements, the COMELEC shall disqualify the bidder upon due notice without any obligation whatsoever on the part of the COMELEC for any expense or loss that may be incurred by the bidder in the preparation of its bid.