PHILIPPINES
Joint Press Conference with the World Bank
on the National Roads Improvement and Management Project
Opening Statement of Finance Secretary Gary B. Teves
Makati City, November 22, 2007
Good morning everyone!
The Philippine Government and the World Bank have a good and long-standing partnership to help the country achieve its development goals. The World Bank has supported many economic and social reforms of our Government which have contributed to its ability to achieve higher growth, reduce poverty, improve delivery of basic social services, and strengthen governance.
In the area of governance reforms, our Government and the World Bank have worked closely to support the preparation and implementation of the Philippines’ procurement law, considered one of the best models in the world. In addition, we have successfully worked together to deepen reforms in public expenditure management and budget transparency.
The National Roads Improvement and Management Program or NRIMP is a good example of our joint collaboration. During the first phase of the program, major progress was made towards putting in place a modern, transparent and accountable national road management system. Some 90 percent of the project goals were achieved: 382 kilometers of roads were built or upgraded in provinces across the Philippines and a further 975 kilometers of existing roads were maintained. As a result, our people have benefited through a more efficient road system, improved access to social services, lower transport costs and reduced travel time.
While the first phase of the program accomplished much, the World Bank cancelled funding of three road projects because of what the Bank perceived to be signs of collusion and excessive pricing. The three projects worth $33 million were equivalent to 10% of the total cost of the phase one of the Program.
Building on the experience of the first phase, the Government and World Bank team have jointly developed stringent anti-corruption measures for the second phase of the Program. We remain hopeful that NRIMP Phase 2 will receive support from the World Bank.
Meanwhile, we have referred the results of the review of the World Bank’s internal investigation unit, the Department of Institutional Integrity (INT), to the Office of the Ombudsman which is the appropriate agency to handle this matter being an independent constitutional body.
We would like to assure our people that the Government remains committed to improving governance. We believe that greater accountability and transparency in government projects are necessary to ensure the efficient and effective use of government resources. With the continued help of our development partners, including the World Bank, we believe that we have made progress in reducing corruption and alleviating poverty.
Thank you.
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