Ramos suggests review of NBN contract now that deal is suspended

By Ronron
September 23, 2007

Former Philippine President Fidel Ramos on Sunday suggested that the government should take advantage of the suspension of the deal with ZTE Corporation as regards the implementation of the National Broadband Network (NBN) project by reviewing the contract.

In a news conference at the Armed Forces of the Philippines (AFP) Medical Center on V. Luna Avenue, Quezon City, Ramos said Philippines and even China can revisit the terms of the contract to polish any perceived loopholes or anomaly.

“The suspension implies many other future actions… (like) a revisiting of the terms so that if indeed there is any overprice in relation to the real cost of the infrastructure, and/or services to be delivered, then that must be recomputed,” Ramos said.

“Also, if there are any further legal issues or claims even to be settled, then this must also be reviewed because there are other parties down the line that are in interest. It is not just the two governments concerned. There are private sector companies that are involved,” he added.

President Gloria Macapagal-Arroyo on Saturday has ordered the suspension of her government’s contract with ZTE Corporation, as well as the Cyber-Education Project in the hope that it would tone down the controversy the former has brought.

The NBN project is worth US$329 million, while the Cyber-Education project costs about US$455.47 million.

The indefinite suspension order came after the Senate investigated the alleged bribe offers by ZTE officials to Comelec Chairman Benjamin Abalos to get the deal, as claimed by Jose de Venecia III, son of House Speaker Jose de Venecia whose company lost to ZTE.

As former President, Ramos said he is delighted by the move of the Arroyo administration to speak about the issue during the Senate probe since there is really a need to clarify the matter before the public.

“To me, that was a very good move,” Ramos said.

With the suspension giving an opportunity now for both countries to review the contract, Ramos said he is hopeful that everything will come out well with regard to the matter.

“The earlier this is redone or renegotiated, the better for all sides,” he said./DMS