Implication of the recent peso dive

Posted on August 6, 2007 - Filed Under Punch Forum |

Jose Ceralde
6 Aug 2007

 

 

Mr. Jeremias Andrade Carrera,

Since we are in the subject of dreams, this one makes the Alaminos nightmare spare change. Check out the latest Philippine white elephant.

The government broadband project with China that was just signed by GMA. It made the US ambassador comment on the Philippine government’s need for transparency.

Why? You and I know from project acquisition planning that the upfront project cost is only 25 to 35 percent and the logistics sustainment cost is 75-65 percent.

The government had already bought or was given quite a lot of government technology network hardware and software to date but did not have the money to sustain the maintenance and even to put the equipment in an air conditioned controlled room so they would not burn out.

So where will they get the money to logistically sustain this new dream of cutting edge technology? The justification for this new project is cutting edge technology will lift the government.

Let's dream on. Lucky for the government it had just finished paying the first white elephant project, the Bataan Nuclear Plant. There was a lot of reason why the peso took a dive until just recently.

Makes me wonder if there was a correlation in the peso dive when it was announced that the plant will not even be operated and the announcement that the payment of the project debt being paid out of the peso recovery.

The government having paid this one is ready to contribute to the next dive? We just hope it could be balanced with the billions of dollars of capital investment of Fil-Ams in Philippine real estate.

Now this one is mainly from the private sector moving with the information and advice of their smart consultants not the ones Carlos Bulosan warned us about.

Check out our kabaleyan, Milpitas California Mayor Esteves getting the spill from Michael Gaviola on his patriot plan. This kabaleyan used his MBA from UP wisely.

This is how the market is developed. Not on the shoulder of government debts.

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