Aquino halts some foreign-funded projects

MANILA, Philippines: Philippine President Benigno Aquino III is canceling or reconsidering foreign-funded infrastructure projects worth $2 billion, saying that although his country badly needs improvements, the contracts are overpriced and technically deficient.
He told The Associated Press in an interview Friday that he has canceled a Belgian-funded lake dredging project, and ordered a restudy of a Chinese-financed rail line and renegotiation of a French-funded port work.
Aquino has been reviewing infrastructure contracts signed under his predecessor, Gloria Macapagal Arroyo, whose administration has been accused of corruption. He did not accuse anyone involved in the three projects of corruption but said dredging in particular “is one of the most notorious practices for those who do corrupt practices ... so I have a tendency to be allergic to such projects.”
Aquino canceled the 18.7 billion peso ($430 million) Belgian project to dredge Laguna Lake, the country’s largest fresh water lake, on the southern edge of Manila.
He said the project was supposed to increase the lake’s water-holding capacity to ease flooding and provide potable water to the sprawling metropolis, but that the plan was to simply move 424 million cubic feet (12 million cubic meters) of silt from one portion of the lake and dump it on another portion over three years.
“That’s where it fell through,” he said.
He said it would be better to spend that money for his government’s 21 billion peso ($483 million) conditional cash transfer program to give financial assistance to the poorest 2.3 million Filipino families.
Aquino’s year-old administration is fighting graft while wooing foreign investors to partner with his government to boost the economy and fulfill his promise of easing poverty.
“We thank the foreign governments that have been assisting us,” he said. “We think it is incumbent upon us to be responsible with their kindness in ensuring that these projects are worthwhile.” He said he wanted to ensure that such projects would also allow the country to repay its loans to foreign creditors in the long run.