Press Release
October 11, 2017

DOTR Budget - Recto interpellates Ejercito

RESUMPTION OF SESSION

At 11:33 p.m., the session was resumed.

The President. The session is resumed.

Senator Sotto. Mr. President, I move that we tackle the budget of the Department of Transportation.

The President. Is there any objection? [Silence] There being none, the motion is hereby approved.

Senator Sotto. Mr. President, I ask that we recognize the sponsor, Sen. JV Ejercito.

The President. Senator Ejercito, the sponsor, is recognized.

Senator Sotto. May we have the presentation of the sponsor, Mr. President, on the budget of the Department of Transportation together with all its attached agencies.

DEPARTMENT OF TRANSPORTATION BUDGET

Senator Ejercito. Mr. President, for fiscal year 2018, the proposed new appropriations for the Department of Transportation and its attached agencies including Budgetary Support to Government Corporations under DOTr amounts to ₱70,365,802,000. This entails a 26% increase from the previous year's budget allocation. This is broken down as follows: Office of the Secretary, ₱52,472,433,000; Civil Aeronautics, ₱127.899 million; Maritime Industry Authority, ₱1,040,569,000; Office of the Transportation Cooperatives, ₱85.689 million; Office of the Transportation Security, ₱376.737 million; Philippine Coast Guard, ₱11,809,861,000; Toll Regulatory Board, ₱28.942 million; for the OSEC and attached agencies, ₱65,942,130,000 plus Light Rail Transit Authority, ₱1,908,672,000; and the Philippine National Railways at ₱3,315,000,000. That is the total budget of the DOTr including its attached agencies, Mr. President.

X X X X X

Senator Sotto. Next, Mr. President, we ask that we recognize the President Pro Tempore, Sen. Ralph Recto.

The President. Senator Recto is recognized.

Senator Recto. Thank you, Mr. President.

Mr. President, may I ask the sponsor of the budget of the DOTr if he is willing to answer just a few questions. I know that the hour is late, Mr. President.

Senator Ejercito. Just a few.

Senator Recto. Just a few questions.

Senator Ejercito. Mr. President, the gentleman from Batangas.

Senator Recto. Instead of 200 questions, maybe 50. Just kidding, Mr. President. [Laughter]

Senator Recto. Mr. President, may I know what the budget of the DOTR was in 2016? Just to go straight to the point.

Senator Ejercito. In 2016, Mr. President?

Senator Recto. Yes. How much was unutilized, Mr. President?

Senator Ejercito. Mr. President, as of December 31, 2016, unobligated is ₱30,000,495,290.

Senator Recto. It is ₱30 billion. In 2017, how much is the budget of the DOTr? Is it not right that the budget is ₱76 billion?

Senator Ejercito. Yes, you are correct, Mr. President, ₱76,707,953,000.

Senator Recto. And how much have they obligated?

Senator Ejercito. Obligated is only about ₱20,000,265,244 or an obligation rate of only 26.4% as of August 31, 2017, Mr. President.

Senator Recto. So, ₱50 billion has not been obligated?

Senator Ejercito. Yes, Mr. President.

Senator Recto. More than ₱50 billion. Kapag sinama ko iyong ₱30 billion in 2016 at ₱50 billion in 2017, mas malaki pa sa buong budget ng DOTr, is that correct?

Senator Ejercito. Mr. President, the allotment for the 2017 General Appropriations Act is only ₱54 billion?

Senator Recto. No. We are not talking about allotment, Mr. President. We are talking about appropriations. We appropriated ₱76 billion in 2017. As of June 30, unobligated, ₱61 billion; as of August, more that ₱55 billion, hindi ba?

Senator Ejercito. Mr. President, the budget in the GAA is ₱54.117 billion and that the ₱76 billion that the gentleman is mentioning is continuing.

Senator Recto. Continuing appropriations. That is correct.

Senator Ejercito. Yes. Sa total.

Senator Recto. Correct. And an unobligated is how much? ₱50 billion....

Senator Ejercito. As of August 31, 2017, Mr. President, it is ₱56,000,442,000.

Senator Recto. ₱56 billion. Again, let me state. The ₱30 billion in 2016 plus the ₱56 billion is ₱86 billion. Mas malaki pa iyong unobligated than the entire year's budget of the DOTr.

Mr. President, just a few questions. I was listening to the gentlelady earlier on the licensed cards. Driver's license lamang. So, you are saying two weeks ago, you are already issuing driver's license. Plastic o papel?

Senator Ejercito. Plastic, Mr. President.

Senator Recto. Plastic na talaga. So, you can go anywhere in LTO and bibigyan ka na ng totoong plastic na. So, congratulations to our secretary.

What about iyong plaka ng kotse? Mr. President, the reason why I ask this question, simple lamang. ₱76 billion iyong budget. Isang taon at kalahati bago tayo makakuha ng plastic na driver's license. Ngayon, plaka ng kotse naman. Kailan natin maaasahan na magkakaroon ng plaka ang kotse?

Senator Ejercito. Towards the first quarter of 2018, Mr. President.

Senator Recto. 2018. So, in spite of a budget of ₱76 billion in 2017, wala tayo ni isang plaka ng kotse.

Senator Ejercito. The procurement of the said plate is ongoing. So, the expected delivery will be first quarter of next year, of 2018.

Senator Recto. All right. Sige, let us get that...

I was listening also again earlier to the lady senator with regard to the public utility jeeps modernization. Kung plaka ng kotse hindi ninyo maibigay, delayed kayo ng ilang taon sa plastic drivers license cards, why are you embarking on a new project or a new program? Babaguhin natin ang lahat ng jeep, sa side na iyong daanan, hindi na sa likod, mas mataas pa iyong jeep. Hindi ba siguro tapusin muna iyong driver's license at iyong plaka ng kotse bago mag-isip ng bagong programa, bagong proyekto?

Senator Ejercito. Mr. President, most of the problems like the supply of the licensed plates and the driver's license were inherited but according to Chairman Delgra, we have to push through with modernization of the public utility jeepneys.

Senator Recto. So, iyong modernization, from Batanes to Jolo.

Senator Ejercito. All across the regions, Mr. President.

Senator Recto. Ganoon na ganoon din iyong driver's license. Palitan lahat ng plaka. Bakit kailangan ang bagong jeep sa Taysan, Batangas na ₱1.2 million to ₱1.6 million ang halaga? Magkano ba iyong jeep ngayon?

Senator Ejercito. The modern jeepney would cost about ₱1.2 million to ₱1.6 million.

Senator Recto. Magkano iyong normal na jeep ngayon? Pipilitin ninyo iyong mga taong bumili ng mas mahal.

Senator Ejercito. The current model of...

Senator Recto. Why not, for example, Metro Manila lamang muna ang subukan ninyo? Pilot. Bakit Aparri hanggang Jolo kaagad?

Senator Ejercito. Actually, Mr. President, of course, Metro Manila will be the pilot area for the jeepneys.

Senator Recto. Yes. So, why try it first somewhere than, say, nationwide, parang plaka rin lamang naman iyan? Palitan natin lahat ng plaka, pati iyong kotse na may plaka na, palitan na rin natin, hindi lamang iyong bagong kotse.

Senator Ejercito. The good gentleman is correct. The pilot area to test whether the public utility jeepneys are already capable and after the testing and all, will be Metro Manila. But after all the tests have been done, then it will be implemented nationwide.

Senator Recto. Subukan nila muna, mag-test muna sila. That is my problem, palitan lahat. Subukan ninyo muna.

Senator Ejercito. Yes, Mr. President, that will be the plan to have it in phases and, of course, NCR will be the pilot area. So, they will replace most of the jeepneys in Metro Manila first before implementing it in other regions.

Senator Recto. I still have my misgivings on that, Mr. President, because as we know, the earlier statements and I am hearing complaints already from different parts of the country. Gusto palitan kaagad lahat. I do not think they will be able to manage that, they cannot even spend their budget. And here they are embarking on a new program. Pwede nating isa-isahin iyang budget ninyo. Let us see one by one. What projects were they able to implement in 2017?

Senator Ejercito. Mr. President, the plan is to implement the modernization of the PUJs in the next three years.

Senator Recto. Does the gentleman mean to tell me that in the next three years, papalitan lahat ng jeep? Ilang taon na iyong plaka? So, this problem will be inherited by the next administration, ganoon? How many jeeps do they want to replace?

Senator Ejercito. About 250,000, Mr. President.

Senator Recto. All right, so magkano iyong jeepney na iri-replace nila?

Senator Ejercito. It is about ₱1.2 million per unit.

Senator Recto. So, the entire program is how much? Two hundred fifty thousand times ₱1.2 million?

Senator Ejercito. Mr. President, the PUV modernization program costs about....

Senator Recto. That is ₱300 billion.

Senator Ejercito. About ₱3 billion.

Senator Recto. No, ₱300 billion. So, what are they talking about palitan lahat ng jeep? Magkano iyong pautang ninyo sa Land Bank at DBP? That will be the cost.

Senator Ejercito. Mr. President, the one who will pay for the unit will be private, the DOTr will only subsidize portion of it.

Senator Recto. So, magkano nga? How much will they subsidize?

Senator Ejercito. Up to 10%, Mr. President.

Senator Recto. So, ₱30 billion, 10%.

Senator Ejercito. They are saying as much as ₱80,000.00 per unit.

Senator Recto. So, magkano nga, hindi na 30% iyon.

The President. Hindi na 10% iyon.

Senator Recto. Another not well-thought-of program, Mr. President.

Senator Ejercito. Mr. President, subsidy for jeepney units at ₱80,000 per unit will be about ₱17.631 billion over a period of five years.

Senator Recto. So, magkano iyon, divided by five, ₱17 billion....So, ₱80,000 times 250,000, that is ₱20 billion if they multiply it. Now, who is going to pay for the ₱280 billion kung ₱300 billion iyong programa, who will pay for the ₱280 billion?

Senator Ejercito. The jeepney operator or the owner, Mr. President.

Senator Recto. The jeepney operator. Where will they get this ₱280 billion?

Senator Ejercito. Mr. President, the government financial institutions and banks are offering 5% down, 6% interest, seven years to pay.

Senator Recto. So, uutang sila sa Land Bank o DBP?

Senator Ejercito. Yes, Mr. President, the gentleman is correct.

Senator Recto. How much is in the 2018 Budget Support to Land Bank and DBP?

Senator Ejercito. Initially, Mr. President, about ₱1.2 billion per bank.

Senator Recto. So, ₱2.4 billion. And, they need ₱20 billion in five years, ₱4 billion a year. May ₱2.4 billion. Saan iyong balanse pa? What is in the DOTr budget? Is there any other item in the budget?

That is the point, Mr. President. I do not blame the chairman of the Committee. He is just trying to answer the questions. But, sometimes these programs are not well-thought-of. We have seen the budget in the Land Bank, and the DBP. How sure are they that that budget will continue there? And, the reason why that is there is assuming we pass the TRAIN. Is that not correct? It assumes we will pass the TRAIN kasi it is part of the earmarking.

Senator Ejercito. Yes, Mr. President.

Senator Recto. Now, why embark on those other programs? Why not think of their budget? How will they spend their 2018 budget, hindi ba? Iyong babaguhin natin lahat ng jeep ay makaka-resolve ba ng traffic iyan? Saka na iyan, ayusin muna iyong EDSA; ayusin ninyo muna iyong traffic; ayusin muna iyong MRT. Bakit ang iniisip natin ay papalitan natin lahat ng jeep kaagad? Or maybe, if they want, sige Metro Manila dahil pollution dito.

Senator Ejercito. Mr. President, the priority is still the railway system. That is why by 2018, they will already start with some of the big-ticket items. Right now the....

Senator Recto. Mr. President, we will get to that. So, do we agree first on the jeepney program before we move on to the other items? I-suspend muna natin iyan. Pag-isipan muna natin ng mabuti iyan. I will have no objection kung dito sa Metro Manila dahil masama ang hangin sa Metro Manila. Sa Aurora kailangan ba ang jeep dahil mausok? Baka kailangan ng kaunting usok sa Aurora, masyadong malinis iyong hangin doon.

Senator Ejercito. Mr. President, while we agree that we have to prioritize the other more important projects, but the DOTr officials' position is that we still have to start with the modernization because...

Senator Recto. I do not mind starting in Metro Manila. But, if the gentleman says nationwide, that is where the problem is.

Senator Ejercito. Yes, Mr. President. We agree with the gentleman that it has to start in Metro Manila.

Senator Recto. All right. Let us review. If it works well, then let us move on to the other provinces. But, let us not say that we will do this nationwide.

Senator Ejercito. Yes, Mr. President. We agree with the gentleman.

Senator Recto. Subukan muna natin, pilot project tayo.

Senator Ejercito. Yes, pilot project within Metro Manila, then we will see if it is very successful, then that is the only time we can say that we can move on and make it a nationwide project, Mr. President.

Senator Recto. That is right. And, why not hintayin muna natin. Before we start Metro Manila, ilabas muna iyong plaka, pwede ba iyon? Tutal first quarter naman daw ng 2018. Para may focus. Hindi iyong kalat iyong pag-iisip.

Senator Ejercito. Yes, Mr. President, the DOTr officials and the LTO committed that the said license plates will be out by first quarter of 2018.

Senator Recto. And, after they come out with that at okey naman iyong programa, then we talk about the modernization in Metro Manila.

Senator Ejercito. Yes, Mr. President, we do agree with the gentleman that they have to prioritize.

Senator Recto. Para may focus tayo at hindi iyong kalat ang pag-iisip, hindi ba?

Senator Ejercito. Yes, Mr. President. The DOTr officials agree with the gentleman.

Senator Recto. Thank you for that, Mr. President.

I noticed that the NEP submission of the President's budget was ₱61 billion. Why did Congress reduce it to ₱52 billion? Why is the GAB at ₱52 billion? Binawasan ng ₱9 billion iyong Executive proposal. What projects were cut, Mr. President? All of it came from Capital Outlay. Their Capital Outlay as recommended by the Executive was ₱48 billion; in the GAB it is down to ₱39 billion. The Senate even cut it more by ₱346 million, it is ₱39.5 billion.

Senator Ejercito. Mr. President, almost all the projects had a cut, except the road sector. The aviation sector about ₱886 million; the rail sector with ₱2.8 billion and the maritime sector with about ₱1.7 billion. And with regard to the foreign-assisted projects, the road sector of about ₱5.3 billion and the maritime sector of about ₱8.3 billion.

Senator Recto. The entire foreign-assisted project was cut.

Senator Ejercito. Yes, Mr. President, about ₱8.3 billion.

Senator Recto. The entire foreign-assisted. Are we not paying commitment fees on that?

Senator Ejercito. Mr. President, most are BRT projects.

Senator Recto. So, tinanggal na iyong plano nilang BRT sa EDSA?

Senator Ejercito. The Cebu Bus Rapid Transit, Metro Manila BRT line in EDSA and Metro Manila BRT line for Quezon Avenue, Mr. President.

Senator Recto. So, ilang taon na ba ang BRT project na iyan na nasa budget? In 2016, it was in the budget; 2017, it was in the budget. They proposed it again in 2018. At pinutol na ngayon ng Kongreso iyan, tama ba iyon?

Senator Ejercito. Mr. President, this started during the past administration, about 2014.

Senator Recto. So, four years na iyan in the budget which they continued in 2017. They requested for it in 2018 also at pinutol na ngayon ng Kongreso, the House of Representatives, is that correct? And we discussed this last year when they said that they wanted to build a BRT on EDSA. And I said, think about that twice. How can they build a BRT in EDSA?

Senator Ejercito. Mr. President, the BRT project for EDSA is being studied right now. And according to the officials, most of the cut are voluntary so that the Free Higher Education Act and other rehabilitation programs, like the Marawi...

Senator Recto. No, no, that is not the point, Mr. President. The point is, ₱61 billion ang hiningi ng Presidente. Pinutol ng Kongreso to ₱52 billion, binawasan ng ₱9 because they said their budget is faultily planned. Masama ang budget niya. And I can go on and on, one by one. We can talk all your budget, one by one, every single project there and the House decided to cut ₱9 billion, the Senate agreed in the committee report because Congress said we can use that better for education because they will not be able to spend it anyway. So, what will stop me from recommending the cut in their budget again by another ₱10 billion or ₱20 billion? Kasi may kulang pang ₱10 billion sa Access to Higher Education.

Senator Ejercito. Mr. President, I just would like to enumerate the BRT for EDSA supposedly funded but now it is about ₱37.8 billion. But now it will be ODA or Official Development Assistance. Before it was in the GAA. The Line 1 of the BRT....

Senator Recto. So, the gentleman would like to tell me ngayon, uutangin iyon? Saan uutangin, sa China?

Senator Ejercito. That is why the project is suspended and the bids are being evaluated right now, Mr. President.

Senator Recto. And you said that their plan is to borrow that money through ODA, the BRT.

Senator Ejercito. Mr. President, after meeting, ADB officials recommended that the EDSA project for the BRT be scrapped but the ones in Cebu and Quezon Avenue are still recommended to push through.

Senator Recto. So, like I said, what will stop me now from recommending another ₱10 million cut? Because you cannot spend your budget anyway. I can go one by one, Mr. President, both 2016 and 2017.

For example, Mr. President, locally-funded projects: Under Road Sector, --pero we are talking about an LTO building--construction of building, LTO District Office, Agoo, La Union, ₱8.5 million. Iyon lamang hindi magawa; perimeter fence and site development in Tarlac District Office, sa kanila naman nanggaling ito, dito sa priority, perimeter fence ₱20 million, hanggang ngayon hindi nagawa; construction of building LTO District Office, Bacoor, Cavite, ₱10 million. Now let us move on, construction of LTO building, Imus, Cavite, 2016, ₱12 million. Hanggang ngayon, no obligation. Construction of building, LTO District Office, Tubod, Lanao del Norte, ₱5 million lamang, hindi rin nagawa; repair/rehab LTO building, at least, some of this nagastos; construction LTFRB office building, ₱90 million, 2017. Hanggang ngayon hindi pa nagagawa. Building lamang iyan; perimeter fence, LTFRB buildings nationwide, lump sum, ₱183 million in 2016. Hanggang ngayon hindi pa rin nagagawa. Now, let us move on....

Senator Ejercito. Mr. President, the others that you enumerated have been obligated.

Senator Recto. There is no obligation for signing MOA with LTO para kunwari na-obligate. Again, it is like the one in DICT earlier, ita-transfer lamang ng Office of the Secretary to LTO to make it appear it is obligated when they have not even bid out--window dressing. Kasi alam nila magba-budget hearing tayo. That is why signing MOA na lamang, "Let us have a memorandum of agreement that I will transfer the funds to you, bahala ka na." Is that correct, Mr. President? Senator Ejercito. Mr. President, the DOTr officials have committed by December all of these will become....

Senator Recto. So, it is not obligated as of today? What was my statement, nagawa ba o hindi? Was there anything wrong with my statement?

Senator Ejercito. None, Mr. President.

Senator Recto. Was there anything wrong with their statement?

Senator Ejercito. I guess they said that they are in the process of procurement, Mr. President.

Senator Recto. So, hindi nagawa. They already had ₱250 million in 2016 for PUV rationalization, Metro Manila. Sabagay, nagastos ito. MRT-BRT Line 1, Quezon Avenue, ₱188 million in 2016; ₱376 million in 2017, not a single peso has been spent; MRT-Line 2 EDSA BRT, ₱20 million in 2016; ₱945 million in 2017. Kulang-kulang a billion, not a single peso has been spent. Nandito. Itemized lahat; Cebu Rabid Transit Project, utang pa ito, 2016, ₱1,336,000,000; 2017, ₱1,032,000,000. Not a single peso has been spent.

Senator Ejercito. Yes, Mr. President. Most of the projects of the DOTr, of course, require detailed engineering design before the projects are submitted for procurement.

Senator Recto. That is precisely my point. What is in the 2018 budget ang walang detailed engineering design? What can we cut?

Senator Ejercito. Mr. President, the detailed engineering designs will be outsourced in 2018.

Senator Recto. So, hindi pa gawa?

Senator Ejercito. Not yet, Mr. President. It will be outsourced in 2018.

Senator Recto. So, all of this, ganoon din iyan, hindi ba? There is nothing here.

Aviation. The NAIA development improvement capacity expansion project, ₱25,000,000 in 2016; ₱10 million in 2017. Not a single one has been done. Laoag International Airport, ₱13.5 million in 2016; ₱128 million in 2017. Incidentally, Mr. President, these projects are also listed in 2018. In fact, nagtataka ako that some of those projects listed in the previous years na hindi nagawa for how many years, ang priority nila noong araw until 2017, then nawala sa 2018. May ganoon ba? So, same thing, Vigan, ₱80 million in 2017. Hindi rin nagawa. Mayroon bang isang airport na nagawa?

Senator Ejercito. Mr. President, a lot of the airports are being upgraded now for night rating capability. Before there were only about 12 IFR-ready or night rated airport. At present, there are about 19. And there are about six more that are in the process of being upgraded for night rating capability so that this will help decongest the NAIA and the Manila airports because there will be more slots this time.

Senator Recto. Mr. President, I mentioned all these airports and I can go on and on and on and on. Baler, ₱320 million. hindi rin nagawa. Sangley Airport, ₱707 million, hindi nagawa. San Vicente Airport, ₱84 million, hindi nagawa. San Jose Airport, ₱185 milllion plus ₱163 million, hindi rin nagawa. Camarines Sur, Naga, ₱1 billion, hindi rin nagawa. Bicol, ₱747, ito nagawa partially.

SUSPENSION OF SESSION

Senator Ejercito. Mr. President, probably we can ask for a minute suspension so that the DOTr officials will be able to explain the status of most of the projects enumerated.

The President. Is there any objection? [Silence] There being none, the session is suspended. It was 12:48 p.m.

RESUMPTION OF SESSION

At 1:04 a.m., the session was resumed.

The President. The session is resumed.

Go ahead, gentlemen.

Senator Ejercito. Mr. President, if I may just explain the low obligation rate of the DOTr briefly.

Senator Recto. Mr. President, I am not asking for the explanation because I know why they have a low obligation rate.

Senator Ejercito. Yes, Mr. President, but the problem is that we are hoping to address the transportation crisis--the problem, especially. We are hoping that by 2018, we could already lay those railroad trucks and start the major infrastructure projects and more than 40% or 50% of the budget of the DOTr are for the rails.

Senator Recto. Yes, Mr. President, because it cannot be roads because that is for the DPWH. Naturally, it should be for the DPWH.

Senator Ejercito. That is why, Mr. President, there is a shift. This year, DOTr will have a bigger budget than the....

Senator Recto. Mr. President, to cut because the time is late, what we can do is that I will just work with the chairman of the committee with regard to the finer details in the budget. For now, I will not have any further questions formally on the Floor but we just work it out with the chairman of the committee.

The President. Good.

Senator Ejercito. That will be better, Mr. President.

Senator Recto. Thank you, Mr. President. Thank you to the chairman of the committee. Maraming salamat!

Senator Ejercito. Thank you to the gentleman from Batangas.

MOTION OF SENATOR SOTTO

(The Budget of DOTr and Its Attached Agencies be Deemed Submitted)

Senator Sotto. Mr. President, I move that we close the interpellation and that the budget of the Department of Transportation and its attached agencies be deemed submitted for consideration of the Body, particularly in the period of amendment.

The President. Is there any objection? [Silence] There being none, the budget of the Department of Transportation and its attached agencies is submitted to Plenary for appropriate consideration.

SUSPENSION OF SESSION

Senator Sotto. Thank you. Mr. President, I move that we suspend the session until ten o'clock in the morning of Tuesday, October 10, 2017.

The President. Is there any objection? [Silence] There being none, the session is suspended until ten o'clock in the morning of Tuesday, October 10, 2017.

It was 1:07 a.m.

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