00:00What we want to ask is that the $45 billion approximately
00:09Next slide, please. Sorry.
00:11Sorry.
00:11Next slide.
00:15I'll return again so that we can implement it as a right.
00:21Because while it is true that the President told me and instructed me
00:27to bring down the prices of materials in order to eliminate overpricing,
00:35he also is very conscious of our desperate need
00:40to ramp up our infrastructure spending and our infrastructure implementation.
00:46We all know that in the past quarter, the economy only grew by 4%.
00:52And this is largely because of the cut in public expenditure,
00:57especially in infrastructure.
00:59And the President does not want that to happen.
01:02Our fear is, and I will show later some examples,
01:06that the cut made using our adjustment factors,
01:12as Sen Win correctly pointed out, across the board,
01:16across roughly 10,000 projects in the General Appropriations Bill
01:22may result inevitably in projects that will end up being unimplementable
01:31because of the way that they were applied to the various projects.
01:36And I will show that in a few slides.
01:39So, ito lang po ang aming hinihiling.
01:43Hindi ho namin ulitin ko.
01:44Hindi ho namin ibabalik ang presyo ulit at itataas.
01:49Ikagawa, wala po kaming project na ipapadagdag ulit.
01:52Wala pong ibabalik.
01:54Wala pong duplicate project na tinanggal na ibabalik.
01:57Wala pong flood control project na ibabalik.
02:00Klaro po yan.
02:01And if I just may go to our statement
02:06and how DPWH, according to the engineers I have with me,
02:12there are, I think, four of them here.
02:15Many of them have been in DPWH for decades already.
02:20Ang proseso po is kapag binago ang cost ng materyales,
02:26kailangan pong gawin ng DPWH iisa-isahin ang lahat ng proyekto.
02:34Dahil ang bawat proyekto po, iba-iba yan.
02:38Merong mas maraming simento ang gagamitin.
02:42Merong mas maraming bakal ang gagamitin.
02:45May mas maraming graba ang gagamitin.
02:47Depende po yan dun sa program of work.
02:51At bawat proyekto po ay iba-iba ang program of work.
02:54Kaya po yung mga presyong ibinaba,
02:57kailangan po yan i-apply sa program of work
03:00ng iba't-ibang proyekto.
03:03Roughly totaling 10,000 projects.
03:06Pagkatapos po bagawin ang POW,
03:10ang pagbabago ngayon dun sa presyo
03:13ay i-reflect na sa bagong approved budget of contract.
03:20Yung ABC.
03:22Kapag po nabawas na yun,
03:24bababop po ang ABC.
03:26Depende sa laki ng binaba ng presyo.
03:30Depende kung saan.
03:31Tama po si Congressman Alvarez.
03:35Na,
03:37depende sa lugar,
03:37depende.
03:40Depende ang presyo ng simento,
03:41ng aggregate,
03:42ng graba,
03:43ng buhangin,
03:44ng asfalto.
03:45Depende sa lugar.
03:47So,
03:47kailangan po yan iisa-isa yan.
03:48At kapag po,
03:50nababa na,
03:51yung ABC,
03:52yung approved budget of contract,
03:55ito na po ang magiging bagong budget.
03:58At ito na po ang ipapublish ngayon
04:00para ipabid at iprocure ng DPWH.
04:05Yan po ang proseso.
04:08So,
04:08ito lang po ang gusto namin ipag-iwanag.
04:11Ngayon po,
04:12gusto po akong,
04:13gusto ko po magpakita ng mga example
04:15ng mga proyekto
04:17nandun sa isa sa mga sampung libong proyektong naapektuhan
04:22nung pagbaba
04:23ng
04:24nang
04:25senate
04:27dun sa mga project costs.
04:30At dito po makikita natin na
04:31hindi po tagaga natin pwedeng
04:33ibaba na lang ng
04:35basta-basta
04:36across the board.
04:38No?
04:38And next slide, please.
04:39These are projects, for example,
04:41for asphalting
04:42in Region 4B
04:43and Region 7.
04:46In the
04:47GAB,
04:48in the house version,
04:50the budget
04:50was 41
04:52million pesos.
04:55In the third reading
04:56senate
04:57version,
04:58it was cut
04:59to
05:0012.9
05:01roughly
05:0213
05:03million pesos.
05:05Roughly
05:06by
05:0668%.
05:07And I understand,
05:09naintindihan ko po
05:10kung sa nang galing
05:11yung 68%.
05:13Dahil po,
05:14para sa asphalto
05:15at sa Region 4B,
05:17yun pong pinadala nating
05:18adjustment factor
05:20sa Senate Finance Committee
05:22ay 68%.
05:24So,
05:25ang ginawa po
05:27ng Senate
05:27is
05:28yung pong
05:29budget
05:30ay kinat
05:31ng 68%.
05:32No?
05:34So,
05:34naintindihan ko po yun.
05:35Pero,
05:36kung gagawin po natin
05:37yung
05:38paraan
05:39na
05:40ang
05:42ikakat lang
05:43ay yung
05:44materyales.
05:45Remember po,
05:46ang materyales
05:47ay
05:47parte lang po
05:49ng cost
05:50ng isang project.
05:52Materyales,
05:54labor,
05:55equipment,
05:57at siyempre,
05:58kailangan din po
05:59ng
06:00contractor's profit,
06:02no?
06:02which is roughly
06:03about 8%
06:04to 10%.
06:05So,
06:06if we apply po
06:07yung 68%
06:09sa materials
06:10only,
06:11ang kalalabasan po
06:12ay
06:1323%
06:16reduction,
06:17or yung
06:18pong 41,
06:20bababa po
06:21ng
06:2131.5
06:23million.
06:23Which means po,
06:25meron pong
06:2518 million
06:26na
06:28mawawala
06:29sa pondo
06:30ng
06:30proyektong ito.
06:32At dahil dun po,
06:34mahirap na pong
06:34i-implement
06:35yung proyektong yun.
06:37So,
06:39on the other hand,
06:40meron din naman po
06:41na
06:42proyekto
06:44na
06:45baliktad naman.
06:46Asphalt overlay din po ito
06:48sa Region 7.
06:49Ang original price po
06:51ay
06:5125.54
06:53pero
06:56dahil nga po
06:58ang
06:58average
07:01factor
07:02sa Region 7
07:03ay minus 3% lang.
07:05Ang cut lang po
07:06ng Senate
07:06ay
07:07from 25
07:11to 2.4
07:12million.
07:13Roughly 1 million lang po
07:14ang naging cut ng Senate.
07:16But if we apply
07:17the factor
07:18for that specific
07:20project
07:20given the program
07:22of work,
07:22it is actually
07:24higher.
07:25It is
07:25not 3%
07:26but it's actually
07:27minus 37%.
07:30So,
07:31meron pong
07:31additional savings
07:32doon.
07:34No?
07:35If I can go
07:36further,
07:37this is for
07:38asphalt overlay.
07:39Concrete road
07:39construction,
07:41ganun din po,
07:42sa Region 2 naman.
07:4390 million po,
07:46ang reduction po
07:47was 15%
07:49because that was
07:50the adjustment
07:50factor for Region 2
07:52for cement,
07:54etc.
07:56Ang naging cut po
07:57ng Senate
07:58was from
07:5990 million
07:59to 76.5 million.
08:02A reduction
08:02of 15%.
08:03But,
08:04again,
08:05if we follow
08:05the process
08:06and only
08:07reduce in
08:08the price
08:10of materials,
08:11the cut
08:11is only
08:126%.
08:13So,
08:15although ito po
08:15hindi masyadong
08:16mataas,
08:17pero,
08:18meron din pong
08:20impacto sa
08:21implementability
08:22ng proyekto.
08:22But,
08:24at the same time,
08:25sa Region 4B naman,
08:27dahil 4% lang po
08:28yung,
08:28ano,
08:29yung aming
08:29adjustment factor
08:30for 4B
08:31in general.
08:32And,
08:324B po is very
08:33special,
08:34kasi,
08:35kahit isang
08:35region po yan,
08:36iba-iba pong
08:37isla yan.
08:38Iba-iba po
08:39ang sitwasyon
08:40sa Palawan,
08:41sa Mindoro,
08:42sa Romblon,
08:43sa Marinduque.
08:44Iba-iba po yan.
08:46Kaya,
08:47mahirap pong
08:47mag-cut lang
08:48based
08:49sa adjustment
08:50factor for
08:51that region.
08:51So,
08:52if we apply
08:53the adjustment
08:54factor
08:55in prices,
08:57actually,
08:58mas maglaki po
08:58dapat yung cut.
09:00Instead of
09:00just 5-4%,
09:01it is actually
09:0217%.
09:04So,
09:04may additional
09:05savings po
09:05na 7 million.
09:08So,
09:09Mr. Chairman,
09:11Madam Chair,
09:13yun lang naman po
09:13ang gusto naming
09:14ipariwanag.
09:15Kaya po kami
09:16naniniwala
09:17sa DPWH
09:18na
09:19dapat po
09:22ang eksekutibo
09:23na
09:23ang mag-apply
09:24nung mga
09:25pagbabago
09:26sa presyo.
09:27Dahil po
09:28yung
09:28proseso
09:30na ginagawa
09:31ng DPWH
09:32ay nandyan na.
09:34May proseso po tayo
09:35para i-apply
09:35yung mga reduction.
09:37At ito po
09:38e mamiminimize
09:39natin
09:39yung risk
09:40na
09:41magiging
09:42unimplementable
09:43or inviable
09:44yung presyo.
09:49working
09:50sa
09:51t
09:53mga
09:53mga
09:54sa
09:54mga
09:55sa
09:56mga
09:57sa
09:58kan
09:59sa
09:59na
09:59mga
09:59sa
10:00mga
10:02sa
10:02in
10:02sa
10:03mi
10:03sa
10:03n
10:03sa
10:03,
10:04sa
10:06sa
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