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Economist
rebuts guv's
defense of airport issue
By
KIT BAGAIPO
 PERNIA | | Criticizing
the statement of Gov. Erico Aumentado that the Panglao Bohol International Airport
Project will be built without any foreign funded loan, economics professor Dr.
Ernesto Pernia said no international funding agency would have approved financial
assistance to such project.
Aumentado
claimed that the Panglao airport will be the only international airport to be
constructed by the national government without any Official Development Assistance
(ODA) loan.
Pernia, former lead economist of the Asian Development Bank,
said he seriously doubts if the project would pass the tests and scrutiny of international
financing agencies. |
Due
to the stringent tests, the government has instead opted to source out funds for
the airport from the Manila International Airport Authority (MIAA) and the Department
of Transportation and Communication (DOTC), Pernia noted.
He
disputed the 23.6% declared economic internal rate of return (EIRR) of the project
based on a feasibility study conducted by TCGI Engineers which was validated by
the National Economic Development Authority (Neda).
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With such a high
EIRR, Pernia said, the project would have been secured through international low-interest
loans and freed the funds of MIAA and DOTC for the country's several other crucial
infrastructure requirements.
He
cast doubts over the reliability of the feasibility study on the economic aspect
of the airport project as it was entirely conducted by engineers.
"I
challenge the true worth, timeliness and relevance of the project feasibility
study, including the 23.6% EIRR," Pernia said. | GEOGRAPHIC
LOCATION
Pernia
gathered from "contacts" at the UP National Institute of Geological
Studies that while Mactan Island is founded on robust rock, Panglao appears to
be basically made up of soft limestone that is unsuitable for an airport.
While
he agrees that a more adequate domestic airport should be built, Pernia said that
the country already has a surplus of international airports which is the intent
of the Panglao airport project.
He
said the eight other international airports need to be fully utilized instead
of building an airport of international standards that would hardly be used for
international flights.
Pernia added that an airport is "merely a conveyance"
and does not necessarily attract tourists.
"What
attracts tourists is the natural, rustic and pristine beauty of Panglao,"
he said noting that Boracay and Palawan do not have an international airport but
are great tourist drawers.
"The
frenzy about the Panglao airport seems to have resulted in the confusion of means
and ends," he said.
Pernia
is asking for a dialogue with Aumentado for the thorough review of the project. | 
