Aquino eyes cancellation of 66 RORO port contracts | Inquirer Business

Aquino eyes cancellation of 66 RORO port contracts

MANILA, Philippines—President Aquino is considering the cancelation of the multi-million-peso contracts for 66 out of the 72 roll-on-roll-off (RORO) port projects signed by the Arroyo administration.

In a speech in Trinidad, Bohol, President Aquino said a review by Transportation Secretary Manuel Roxas II showed that the country needed only six out of the 72 RORO port deals that the government of then President Gloria Macapagal-Arroyo entered into.

“Secretary Roxas and his people made a study. It appears that we only need six but 72 are now under contract. What’s even more painful is that these ports were placed in dangerous areas,” President Aquino said.

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President Aquino said the questioned RORO ports were placed in areas experiencing usually huge waves and would already be off-warranty upon completion.

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“You didn’t place it in the right location so there’s no warranty. When you complete it, the warrant is immediately void. When it’s damaged, we’d again have one built,” President Aquino said.

President Aquino said foregoing the construction of the excess RORO ports would save the government more than P15 billion.

Aquino said the amount was almost twice the P8.4 billion needed for the construction of a new Panglao international airport, seen by stakeholders as boosting Bohol’s tourism and economy.

Aquino, however, said canceling the contracts would mean suits filed against the government before courts overseas. He said this clause was contained in the questioned contracts, which he considered disadvantageous to the country.

“Let me just add, we will cancel these (RORO) contracts and it is said that we would be taken to court by the contractors. When they file a case, it would be painful because my (predecessor) allowed that we be taken to court overseas,” Aquino said.

“It’s like boxing but where your hands are tied, your feet are tied, you’re blindfolded and even your ears have been covered. How can we win under such agreements? But we’re doing what’s proper and I’m sure that with your help, there’s no doubt we can resolve this,” Aquino added.

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TAGS: Business, contracts, Government, ports

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