Vinia Datinguinoo Mukherjee: Congratulations, PCIJ! Mabuhay kayo!
Lead Philippines: But without credible mass media there, what is left to protect the people..?
vonjobi: it's juned sOniDo.
Lead Philippines: Can't believe this is still happening in the country. If the government does nothing, I won't be...
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hopeless_race : Sana itreat naman po ng media ang hacienda luisita at mendiola massacre na parang MAGUINADANAO MASSACRE. Ipublicized ang mga katotohanan at ipakita sa tao ang karumaldumal na pinaggagawa sa mga farmers dun. Untouchable po ba sila cory at danding at hindi magawang batikusin ng media about these two massacres?
hopeless_race : Kapag napaguusapan ang mendiola at hacienda luisita massacre ay parang walang nangyari at parang hindi big deal. Anu po ba ang pinagkaiba ng dalawang nabanggit na massacre sa maguindanao massacre?
hopeless_race : Its sad that we pinoys are blind to the fact of what had happened in mendiola and hacienda luisita. Ang tanong..bakit ang media ay hindi manlang matackle ang ganitong usapin? Takot ba sila kay cory at danding?
hopeless_race : Wilkins" brand, for P1.4 billion.-1999 Sugarland Multi-Food Corp. for P2.9 billion 2001- Purefoods Corp P7 billion P60 billion Coca-Cola ... See More 2002- Cosmos Bottling Corp. from RFM Corp. for P14.1 billion October 2008- GSIS' shares in Meralco worth PHP30 Billion. December 2008- country's biggest oil refiner, Petron Corporation. international company shopping spree: Australian boutique brewer J. Boag and Son for A$96 million in 2000. $97 million for Thai Amarit Brewery Ltd $35.5 mi
hopeless_race : Gud am..glad to be back.
jr_lad : rip mr. alecks pabico. you'll be greatly missed!
sevens21 : Dati input mo lng name at SSS ID makukuha mo agad STATIC INFO...
sevens21 : tawag ka sa HOTLINE nila walang ANSWER grrr we need pa namn ng static info SSS Gising!!!
sevens21 : Gawa naman po kayo ng article about SSS. Pangit ng site nila dali ma blocked ng account
guest_899 : we must check the background of each potential candidates to avoid having another big mistake like GMA
guest_899 : congratulations to PCIJ, more power and God Bless !
jazzymuver : how did Arroyo swallow that kind of things!! how come that she just spend the money our countrymen for her own sake!!
guest_3664 : i would be glad if u can include the investigation of the manner public officials announce infra projects as per COA regulation. It is frustrating to see their faces on the tarpaulin instead of the prescribed information like name of project, date of implementation,amount of contract, source/s of fund, among other things. This is very rampant here in Marikina. Thanks and more power on your noble endeavors. We need people like you to have make our country great again.
jhanz_08 : im making research on R.A 9136...with rgards to the privatization of NPC..could someone out there can let me understand more bout this matter?why was monopoly dismantled?email me..jhanycem@yahoo.com...thanks much
erika marie : P.S.:) my paper is due next week and i do hope someone could provide me these reports coming from reliable resources thank you ulit.
erika marie : P.S.
guest_4275 : i am currently doing a study regarding political killings in the philippines. could someone out there please send me human rights reports under Aquino and Ramos administration. you could send it at my email: erikamariet@yahoo.com your response would surely be very much appreciated. thank you everyone. god bless.
guest_4275 : i am currently doing a study for my paper regarding political killings in the philippines. i noted that there are no human rights reports during the Aquino and Ramos administration. could someone out there please send me reports regarding these matter? i do hope these reports came from reliable resources you could send it in my email; erikamariet@yahoo.comyour response would surely be appreciated. thanks everyone. god bless.
jayson bourne : gusto ko po maging member ng PCIJ, panu po ba? may application po ba? sana mapadalhan nyo ako ng info sa email ko... www.jboxpenshoppe@yahoo.com
jayson bourne : cory is OK, but kris & Noynoy sensationalize masyado...
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meow : boycotts worked during marcos years. how about doing it now against the businesses of the con-ass congressmen?
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NBN deal: The truth according to DOTC

Posted by: Avigail Olarte | September 20, 2007 at 8:38 pm
Filed under: Congress Watch, Governance, In the News

AS a matter of public concern, we are reproducing in text form the Powerpoint presentation of Transportation and Communications Assistant Secretary Lorenzo Formoso III.

In the Senate hearing today, Formoso said the controversial Chinese company Zhong Xing Telecommunications Equipment Limited (ZTE) “offered the best package in both capability and cost” to the government, contrary to claims that the ZTE proposal for the National Broadband Network (NBN) project was “ridiculously overpriced.”

He explained that with the project cost of $329 million, ZTE will be able to provide a nationwide system for a “seamless connectivity of landline, cellular and Internet services” in all national and local government units, down to the 6th class municipalities. He said losing bidders Arescom and Amsterdam Holdings would need to spend $1 billion and $562 million, respectively, to provide coverage like ZTE’s.

The Truth About the National Broadband Network Project

This report will show:

The National Broadband Network project will save billions of pesos every year.

NBN will greatly enhance government communications capability and security, down to the poorest communities.

NBN’s chosen supplier ZTE offered the best package in both capability and cost.

NBN is going through all procurement processes required by law.

In sum, the nation will gain and the law will be followed.

NBN will save billions

Current cost of government telecommunications: more than P4 billion a year

NBN amortization cost: Less than P1 billion a year

Operation, maintenance, and upgrading: P1 billion a year, using current Telecommunications Office budget — hence, no additional cost

Savings over 25 years: P20 billion in first five years, P60 billion in next 20 years

Even more, in fact, since current telecom costs will rise when more government agencies get connected

NBN will enhance security and services

Government information and telecommunications will be kept with a secure system, instead of going into the internet, where copies of documents are kept in outside systems.

All NBN equipment deliveries will be subjected to security audit, to ensure they are free from surveillance devices.

NBN will have high-level encrypting and security programs and protocols.

Using internet protocol for voice, image, data and other information, NBN will enable video conferencing, data sharing, mobile VOIP and other high-grade services down to 6th class municipalities and community e-centers.

Mirror-image data centers in Manila and Cebu will ensure uninterrupted service.

NBN’s chosen supplier offered the best package

ZTE will provide a nationwide system serving national and local governments down to 6th class municipalities, plus GOCCs and community e-centers, for $329 million.

Based on their costs for much smaller systems, Arescom and Amsterdam Holdings would need to spend $1 billion and $562 million, respectively, to provide coverage like ZTE’s.

ZTE’s package would be fully funded by China’s Export-Import Bank, at 3-percent interest payable over 20 years, with no payments in the first five years.

Arescom and AHI have no firm financing commitments. At commercial terms of upwards 6-percent interest with no grace period, at cost would be far higher than ZTE’s.

ZTE is a global name in building integrated telecom systems. Both Arescom and AHI have no track record in such undertakings, and AHI has no clear technical partner.

NBN is following processes required by law

CICT and DOTC studied proposal since August 2006.

China designated ZTE as supplier under its soft loan for NBN.

Government Procurement Policy Board opined that NBN is covered by executive agreement not covered by RA 9184.

NEDA Board approved NBN project.

Conditional supplier’s contract signed and reconstituted.

DOJ opinion affirmed that NBN is covered by executive agreement.

NBN now awaits forward obligational authority from DBM, loan negotiation by DOF and China-Exim Bank, final DOJ opinion on overall agreement, and Supreme Court decision on ZTE contract.

NBN or no NBN?

If we don’t build NBN, the government will spend higher and higher amounts on telecom services, and be exposed to security breaches using the public interest.

If we build NBN, government telecom costs will fall by approximately P3 billion a year, and we will have a secure, government-only system serving the nation down to the poorest communities.

COMPARISON WITH AMSTERDAM HOLDINGS AND ARESCOM
PROPONENT	ZTE NBN PROJECT	AHI	ARESCOM
Cost vs. Deliverables	US$329M 3000 Base Station 300 Backbone Station 30 IPMPLS Nodes 25,844 CPEs with IAD/VOIP Terminals 1 IDC & NOC with back up Managed Services & Trainings	US$240M 87 Base Stations 500 Cell Sites Note: Government will buy its own cellphone from AHI or other vendors	US$ 21 Base Stations 83 CPEs Satellite Central Hub Station
Cost to provide same coverage	US$329M	US$562M	US$1B
Coverage	Government offices up to 6th class municipalities	Access up to 2nd class municipalities and some 3rd class depending on the distance to cell sites	21 Selected DILG Regional Offices
Company Information	State-owned company, publicly listed in Hong Kong and Shenzhen Stock Exchange Selected and nominated by China Government for the NBN	A holding company (no other details were provided) No partners mentioned except the Liga ng mga Barangay and unidentified Chinese partners	A consortium of companies, but no details were provided
Financial Capability	Asset amounting to RMB23.07B or PhP140.54B	Paid-up capital of PhP312,000	Paid-up capital of PhP625 thousand
Technical Capability	Highly experienced in development, manufacturing, installation, integration and operation of ICT	No documents submitted to prove experience and technical capability	No documents submitted
Project Nature	Government to government project covered by tied loan from China 0 years repayment with 5 years grace at 3 percent maximum	Private telecom business with government as target subscriber	Government to government but no endorsement covered by loan 0 years repayment at 6 percent

Source: DOTC

This entry was posted on Thursday, September 20th, 2007 and is filed under Congress Watch, Governance, In the News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

9 people have left comments

[...] Formoso’s presenting is the one Formoso presented at the Ateneo last June; Formoso’s Power Point is available at the PCIJ Blog; it’s a longer version of their ads; see NBN deal articles: if the DOTC had sense, [...]

Current » Liveblogging the cootie grooming session wrote on September 20, 2007 - 9:01 pm | Visit Link

“What is a broadband?” our officekeeper asked us this morning. “Is this the same broadband in those commercials, like internet?” referring to the broadband deal.

I wonder who else among the poor know what this broadband is. Will it matter anyway to a Juan dela Cruz? Will it cure the epidemic called “poverty”.

Is this another Northrail Project? “There’s no need for bidding. As long as we’ll get the funds. It doesn’t matter if it will face legal battle. Taxpayers will take care of it anyway,” they must have always said.

Just look at every government websites. Click on their projects and bidding section. Don’t get surprised if you see nothing. It’s been like this all the time. They don’t need to inform the public. They know everything. It’s for the “common good”.

“Go on. Just let them spill the beans,” someone else told the housekeeper.

Perhaps what makes this broadband deal controversial is the involvement of the greatest Comelec Commisioner in Philippine history. Shall I call him the Kingmaker. Everyone loves him, that’s why.

NBN will save billions! What on earth finally makes this government to finally save? Am I just dreaming? I guess not. I believe that as long as we’re borrowing billions of dollars for projects that does not actually benefit the biggest taxpayers - poor people, this country will always be a nation of thieves.

NBN will enhance security and services? I’m sure every government agencies wanted to enhance their services. Everyone will love it but this is not the case.

NBN’s chosen supplier offered the best package? What package? Maybe that’s the reason why the contract was “stolen”.

NBN is following processes required by law? I remember my subject matter about fallacy - “Not all law enforcers are law breakers”.

So what’s this broadband deal all about? Neither do I know. But the way it look like it’s not that funny commercial about internet. It’s the newest teledrama only Philippine politicians play. ;(

jlagman17 wrote on September 20, 2007 - 11:17 pm | Visit Link

The present controversy that again put some of our country’s top government officials in the headlines is sickening. While majority of our countrymen are in desperate quest where to get money to buy their next meal, they who are tasked to help them busy themselves instead to further their greed for economic power and influence. The expose’ made by the young DeVenecia is the latest example of how far insatiable greed had gone up in our country’s bureaucracy. If the claim that the deal is overpriced by about $130million, this amount if converted in our currency is about P5.85 billion pesos based on the P45 pesos to the dollar exchange rate, and if this is used for poverty alleviation could spell a big difference in gradually solving the extreme poverty that is strangulating our countrymen; and this is but one of the many questionable deals our government had entered into. We need modern heroes, the likes of Jose Rizal, Andres Bonifacio and Ninoy Aquino,etc. who sacrificed their own lives for the betterment of each and every Filipino, that each of us may live a decent and comfortable standard of living. When shall come a time when those in governance will feel the desperate woes of the hungry majority; or shall we just wait in despair and continue to be the laughing stock and hopeless basket case of Asia? Time is of the essence. Change for the better has to start now. We are calling on all Overseas Filipino Workers, the modern heroes, to stand up to this challenge for CHANGE.

bluedragonpinoy wrote on September 21, 2007 - 5:59 am | Visit Link

There is no need for separate broadband network. Security is well taken cared of by 128 bit SSL protocol plus PPTN protocol. These protocols are proven technologies used by OECD government bodies.

BPL technology can provide a nationwide system serving national and local governments down to 6th class municipalities, plus GOCCs and community e-centers WITHOUT THE $329 million price tag.

BPL technology can provide a more cost-effective alternative to ZTE - pennies to the dollar.

ZTE maybe a global name - but its costs are high. Local companies are equally adept at building integrated telecom systems - as proven by the proliferation of call centers that serve a global customer base.

In sum, the nation will lose if NBN is awarded to ZTE

Bong V. wrote on September 22, 2007 - 4:41 am | Visit Link

[...] PCIJ uploads the presentation of the government explaining that the Chinese company ZTE offered the best proposal in terms of [...]

Global Voices Online » Philippines: Corruption scandal reaches the presidential palace wrote on September 28, 2007 - 5:20 am | Visit Link

[...] given the green light to two Cabinet members to negotiate with China’s ZTE Corporation for the contract, even before NEDA could begin evaluating the [...]

INSIDE PCIJ » How far will Abalos impeachment case go? wrote on September 30, 2007 - 2:19 am | Visit Link

I am no expert, but just using common logic would raise a lot of questions on how government has approached this project. Why didn’t government commission a full study of the issue and set the common standards and requirement with which bids will be based on? By not doing this, we are looking at 3 bids that are vastly different. We are at best comparing apples to oranges. Isn’t this a sure recipe for graft and corruption? We have so many brilliant people in government and yet we could not think of something as simple as setting common benchmarks. Was bidding limited to these 3 entities, 2 of which seems to have no substance at all? I can imagine the frustration of Filipinos confronted with yet another corruption froth and seemingly stupid situation.

hbg8888 wrote on October 5, 2007 - 10:13 am | Visit Link

[...] the doors of the National Economic and Development Authority (NEDA) to get more documents about the National Broadband Network (NBN) deal, they found the passageways shut due to an order by Executive Secretary Eduardo [...]

INSIDE PCIJ » Ermita’s gag order demoralizes NEDA staff wrote on October 25, 2007 - 10:57 pm | Visit Link

[...] privilege that Malacañang invoked to keep some documents in relation to the US$329-million National Broadband Network (NBN) project [...]

The Daily PCIJ » Blog Archive » SC asked to nullify executive privilege on NBN documents wrote on October 30, 2007 - 4:19 pm | Visit Link