(The Philippine Star)
Updated September 15, 2011 12:00 AM
MANILA, Philippines - The Aquino administration will have to wait until 2013 before it can start setting up a national broadband network, House Minority Leader Edcel Lagman said yesterday.
“If there are no funds in the 2012 budget for it, then they have to include the needed appropriations in the 2013 budget proposal,” he said.
Lagman said Malacañang cannot use funds in next year’s budget for the project unless it is so specified in the annual outlay approved by Congress.
Lagman also asked Aquino to ensure that the government get the best deal for the project, which authorities hope to bid out to all financially and technically qualified firms.
He said the project would likely be funded through foreign loans subject to conditionalities.
“There would always be conditionalities attached to the loans. The nationality of the loan would determine the nationality of the contractor and the supply component,” Lagman said.
“Let’s see if the President can get out of the mold and we challenge the administration to do that,” he said.
Earlier, Budget Secretary Florencio Abad told The STAR that there are no funds for next year for the broadband project being pushed by Science and Technology Secretary Mario Montejo. “This is not contemplated in the 2012 budget,” Abad said.
“More basically, there is a policy issue that needs to be resolved in the Cabinet, and that is, is it desirable and feasible for the government to develop and maintain a broadband network/backbone?” he said.
But the project is likely to easily hurdle funding problems judging from the support it enjoys even from members of the House opposition bloc.
“No country in the world progressed without its government having its own broadband network,” Senior Deputy Minority Leader and Quezon Rep. Danilo Suarez said.
“Our country needs a backbone for communications from the top to the smallest government unit and I will be the first, even I’m from the opposition, to support that (project),” Suarez told a press briefing. He expressed reservation, however, against letting private telecom companies run such network as raised by some Palace officials.
“There is much sensitive data and information in government and we would not want that to pass through the hands of private companies, and that would be a grave security risk,” Suarez said.
He said he hopes the DOST’s P800-million project cost estimate was accurate. He said a broadband project entails staggering expenses and that even $329-million cost of the botched broadband project during the Arroyo administration was reasonable.
He said the administration should also watch out for “middlemen” or “brokers” who may ask for exorbitant commissions.
“Having middlemen is normal in business but we have to make sure that they don’t get too much,” he said.
Sen. Joker Arroyo, for his part, said he is also in favor of a
broadband project but with the government acting only as subscriber.
“The basic question is simple namely, whether the government will put it up itself and raise the money for it or will the government encourage the private sector to establish it and the government shall be a subscriber just like everyone else through the principal user,” Arroyo said.
“The first option is out of the question. The project will cost a lot of money. But even more important, broadband technology like everything else in communication technology, is ever-changing and the government cannot keep up with the cost of the changes and upgrading its facilities. That was discussed in the ZTE hearings,” he said, referring to the Chinese company that would have put up the first broadband project. By being just a subscriber, the government will not have to spend much, according to Arroyo.
“It will just connect with private broadband operators and pay fees of a subscriber. That a broadband network is necessary in this age and time is a necessity,” he said.
“The government should never again involve itself in putting up a telecommunications system because of its past experiences,” Arroyo said.
“What was clear, even during the (ZTE) hearings, was that it would be a lot cheaper for the government were it to just subscribe to broadband connection put up by the private sector instead of installing and operating one itself,” Arroyo added. Paolo Romero and Christina Mendez
http://www.philstar.com/Article.aspx?articleId=727234&publicationSubCategoryId=63
“If there are no funds in the 2012 budget for it, then they have to include the needed appropriations in the 2013 budget proposal,” he said.
Lagman said Malacañang cannot use funds in next year’s budget for the project unless it is so specified in the annual outlay approved by Congress.
Lagman also asked Aquino to ensure that the government get the best deal for the project, which authorities hope to bid out to all financially and technically qualified firms.
He said the project would likely be funded through foreign loans subject to conditionalities.
“There would always be conditionalities attached to the loans. The nationality of the loan would determine the nationality of the contractor and the supply component,” Lagman said.
“Let’s see if the President can get out of the mold and we challenge the administration to do that,” he said.
Earlier, Budget Secretary Florencio Abad told The STAR that there are no funds for next year for the broadband project being pushed by Science and Technology Secretary Mario Montejo. “This is not contemplated in the 2012 budget,” Abad said.
“More basically, there is a policy issue that needs to be resolved in the Cabinet, and that is, is it desirable and feasible for the government to develop and maintain a broadband network/backbone?” he said.
But the project is likely to easily hurdle funding problems judging from the support it enjoys even from members of the House opposition bloc.
“No country in the world progressed without its government having its own broadband network,” Senior Deputy Minority Leader and Quezon Rep. Danilo Suarez said.
“Our country needs a backbone for communications from the top to the smallest government unit and I will be the first, even I’m from the opposition, to support that (project),” Suarez told a press briefing. He expressed reservation, however, against letting private telecom companies run such network as raised by some Palace officials.
“There is much sensitive data and information in government and we would not want that to pass through the hands of private companies, and that would be a grave security risk,” Suarez said.
He said he hopes the DOST’s P800-million project cost estimate was accurate. He said a broadband project entails staggering expenses and that even $329-million cost of the botched broadband project during the Arroyo administration was reasonable.
He said the administration should also watch out for “middlemen” or “brokers” who may ask for exorbitant commissions.
“Having middlemen is normal in business but we have to make sure that they don’t get too much,” he said.
Subscriber not operator
“The basic question is simple namely, whether the government will put it up itself and raise the money for it or will the government encourage the private sector to establish it and the government shall be a subscriber just like everyone else through the principal user,” Arroyo said.
“The first option is out of the question. The project will cost a lot of money. But even more important, broadband technology like everything else in communication technology, is ever-changing and the government cannot keep up with the cost of the changes and upgrading its facilities. That was discussed in the ZTE hearings,” he said, referring to the Chinese company that would have put up the first broadband project. By being just a subscriber, the government will not have to spend much, according to Arroyo.
“It will just connect with private broadband operators and pay fees of a subscriber. That a broadband network is necessary in this age and time is a necessity,” he said.
“The government should never again involve itself in putting up a telecommunications system because of its past experiences,” Arroyo said.
“What was clear, even during the (ZTE) hearings, was that it would be a lot cheaper for the government were it to just subscribe to broadband connection put up by the private sector instead of installing and operating one itself,” Arroyo added. Paolo Romero and Christina Mendez
http://www.philstar.com/Article.aspx?articleId=727234&publicationSubCategoryId=63
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