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Infrastructure problems

November 28, 2008

Its a good how many weeks since I went back to school. We’re already into the first few hundred pages of readings in most of our subjects. Reading, studying, eating, drinking, sleeping, these are all good things but the daily commute really really takes a lot out of me. 

Let’s face it there’s a problem with mass transit in Manila. MRT is operating at over capacity already. It will be a problem in the years to come. Government should invest in more infrastructure projects and it should change its corruption model.

The current corruption model makes 20-40% of the contract price go to the powers that be. This leaves 60% for entire project. Yes, the entire project. 60% will be used to finance a project that needs 100-110% of the contract price. At least this is what I’ve been hearing.

So a project is 60% done.

Compare this with the other models that I have heard of a contract is worth say P100 Million. That’s the actual cost of the project. The contract price will be at P120 Million. The price is set a little higher in order to make allowances for “shrinkage”. Therefore the project still gets P100 million or the full amount of what it will actually cost. 

 

Posted by domesticatedman at 11:39 pm | permalink | comments[1]