COA questions Cavite-Metro road project

The Commission on Audit (COA) has found deficiencies and signs of overpricing in the Daang Hari-Slex Link Road project of the Alabang-Sto. Tomas Development Inc., (ASDI) a subsidiary of Philippine National Construction Corp.

Among the things the COA questioned in its 2010 report on the ASDI were the absence of a public bidding for advance works on the project, which was handled by the PNCC; the lack of detailed engineering plans prior to the award of the contract, and the over 200-percent markup by the PNCC in the detailed engineering cost.

But earlier this year, ASDI terminated its contract with the PNCC. The Department of Public Works and Highways then bidd out the road project to a private contractor. The government said ASDI would be compensated for what it had already spent on the project.

The project will connect Daang Hari Road in Cavite to the South Luzon Expressway near the Susana Heights interchange. It has been identified as a priority project under the Cavite-Laguna Transport Study of the public works department and is expected to decongest Metro Manila traffic.

ASDI entered into a memorandum of agreement with the PNCC in 2009 for advance works on the road project. The PNCC was designated the main turnkey contractor for the project design, the clearing of the rights of way, and the completion of the road’s first two lanes, including tollgate facilities.

In response to the COA findings, ASDI argued that the law allows it to award the project to PNCC. On the absence of a public bidding, it explained that the road construction was a priority project because of the economic benefits it would bring to Laguna, Cavite and Metro Manila. As for the overcharging on the detailed engineering design, ASDI it would discuss the matter with the PNCC. Leila B. Salaverria