Skip to main content

Imperative 25: 6th vision: 1st World CSR companies' toll roads

    Mega co-op agro-forest clusters earning millions of dollars out of export sales each month will surely afford paying toll fees to a road-making consortium set up by scores of 1st World CSR companies.  Built on build-operate-transfer basis, the initial toll roads should connect to existing rural roads to access millions of hectares of currently denuded tropical lands.  To access further millions of hectares of current Philippine regions that have zero road networks, the BOT consortia may coordinate with pre-coops to set up new region-wide toll road networks based on mega co-op Movement plans.  Mega co-ops and their BOT partners may thereby transform the entire Philippines' currently denuded uplands into greenhouse gas-absorbing forests and croplands that operate in perpetuity.  
    The said 1st World road-building consortia (which includes civil works companies) may sell billion-dollar low-interest bonds to the Asian Development Bank, World Bank, States' Aid agencies and Climate Change Funds to finance mega co-op road-building for agro-forestry.  The roads should be built only along areas planned by mega co-ops as sites for establishing agro-forests.  
    For the sake of greenhouse gas sequestration, all climate change employee networks and CSR companies in the 1st World have to persuade their governments' funding agencies to re-channel a major part of their general funds towards purchase of the described consortiums' green bonds at Aid terms.  Bonds will be repaid and earn interest as well, so the institutional lenders may create money out of thin air (sell bonds) if general funds have all been budgeted.  The target: build access roads to all denuded tropical lands where mega co-ops plan to build agro-forests, starting with Philippine uplands. 
    Each Philippine BOT agreement should be between the foreign road building consortium and a consortia of 20 or so mega co-ops (not government) because the toll roads will traverse mega co-op lands. Further, no Philippine regime funds will be used in the road-building projects, so the State will have no right to demand ownership (with corruption potentials) of the new toll roads.  Furthermore, the co-ops will have the roads built on State/co-op joint venture lands with land use rights granted to them, so said co-ops should own the road rights. Additionally, the toll road systems will be subjected to taxes, which should already provide the State with just compensation. Transfer of ownership after each foreign BOT operator's 10-15 years of profitable toll operations should hence be in the name of the mega co-op consortia that will henceforth operate the toll road network for good profit and perpetual 1st World standard maintenance.  New capital stock shares should be created for the purpose, to be bought by the mega co-ops on installment basis even before full transfer of ownership. Installment payments should come out of a percentage of toll service fees from startup to transfer stages, enabling the investing masses and investor companies to own, operate and earn from  highly profitable toll road systems without painfully saving for capital over decades.  Mass ownership of profit-making infrastructures thru mega co-op BOT arrangements should help in gradually closing the scandalously wide wealth gaps in Philippine society.
    A final reason why transfer of ownership should be towards mega co-ops and not government as required by current BOT law is supported by Philippine corruption history.  Philippine infrastructure construction agencies have been popularly known for decades as among the 'top corrupt' in government. The widely known reason: 'facilitation fees' required by politicians' 'arranger squads' and certain Public Works people deduct a total 40-50% off project cost, which includes payouts from top officials down to the lowest bureaucrat who have power to approve or process permits, licenses, franchises and payments. Contractors are thereby forced to build low-cost 'muffin roads' that have to be repaired after every rainy season.  Endless repairs of course mean perpetual lucrative contracts, so 'muffin' specifications have become permanent.  Foreign BOT companies should end the tragedy by requiring local sub-contractors to use 1st World standard specifications and materials, and pay suppliers in full according to schedule.  Our BOT schemes' avoidance of State budgeting for infrastructures thru direct dealing between 1st World and local mega co-op consortia will automatically eliminate politicians' and 'facilitators' commission cuts from planning to construction and even to transfer stages.  
    If our visualized I-Congress already operates, no politician or political party will even be around to pressure BOT companies into making million-dollar 'facilitation advances' to obtain permits, franchises, signatures and promises of 'protection from insurgent bands'.  Actual protection from rebel and criminal bands will be automatic, for all military and police personnel and much of their relatives will become owners of mega co-op shares thru the Loans for Mass Entrepreneurship Law and the Personal Income Tax to Mega Co-op Shares Law, hence will be personally protective of the road-building projects.  Further, employment of local rural folk (rebel groups' recruitment base) in building the roads, plus future ownership of the projects by employee masses (not oligarchs or State), obviates rebels' 'pro-poor' excuses for scuttling or 'milking' all rural money-making projects whenever possible.
    Finally, BOT road networks getting to be owned by mega co-ops will ensure corruption-free post-transfer toll operations, maintenance and rebuilding thru Contract Approval by Referendum enshrined in mega co-op by-laws.  CAR requires 30% or more of top investors to approve all major plans, bids and contracts thru website voting.  Since it is 'bankruptly expensive' for contractors to bribe thousands of approvers with long built-up reputations to protect, large-scale corruption becomes an impossibility. Mega co-ops' management audit committees aside from external financial auditors should further help ensure efficient operations and prevent 'small-scale' corruption in toll road materials and service purchases.  
    The BOT road networks are critical for quick reforestation of 18 million hectares of denuded Philippine uplands.  Corruption-free agro-forest operations should add to the quick transport of goods and generation of high profits that will ensure perpetual existence of new CO2-absorbing greenery in the country.  Copycats throughout the 3rd World tropics where rampant corruption is also 'traditional' should multiply CO2 sequestration geometrically.  Toll road systems should thereby help to convert a major part of Earth's  700+ billion tons of resident atmospheric CO2 into sweet oxygen thru agro-forest photosynthesis, thereby helping to reduce atmospheric gas proportions down to safe pre-industrial levels.
    (Read other posts: Press Up arrow, click 3 bars at top of page, click Labels, click your choice of topic)
       
  

Popular posts from this blog

Imperative 47: I-Congress laws for State/Business synergy and Judicial efficiency

    The Philippines' current $4,000 or so per citizen gross domestic yearly production  is far short of 1st World equivalents at $10,000-up.  Two major causes apart from the past factors discussed in previous posts help explain such stumbling block against mass progress.  One is the near-total separation of State and private sector economic activities.  Another is Justice System inefficiency and corruption.  To address the said issues, two additional I-Congress laws have to be passed and implemented:      1.0  Century Business Planning Law: Trillions of pesos in State tax proceeds as well as billions of dollars in foreign exchange receipts and loans are currently managed by State thru yearly budgeting by Congress, the Executive branch and local governments. From Philippine independence year 1946 to present, the leaderships of such State components have been dominated by lawyers.  As everyone knows, lawyers' training and nature of work focus on regulation of business and citiz

Imperative 46: I-Congress laws versus high inflation, State profligacy and nationwide over-borrowing

    To further help in ending mass poverty, laws that enforce pro-people monetary management by State need to be passed and promulgated by the Philippine I-Congress as follows:     1.0  State Spending Limit Law:   Yearly State budget increases must not exceed 5 years' average inflation-adjusted gross domestic production rate increases. Such provision will prevent old-style politicians' excessive expansions of money and credits ostensibly for development but are instead used for unproductive vote-attracting projects with 40-50% arrangers' commission 'on the side'.  Economic logic and history consistently point out that unproductive State expenditures lead to unbridled price increases of goods and services (which hurt the masses most), but such history just keeps on repeating itself in the Philippines.  Hence our State Spending Limit Law together with other related laws should address the following targets:      1.1  End Philippine politicians' tendency to alloc

Imperative 19: 1st vision: 2K-hectares Philippine mega co-op agroforest farms

    Since end-1980s, the Philippines' Dept. of Environment and Natural Resources had been offering 25-year (renewable once) forest land development joint ventures at thousand-hectare levels to local co-ops and associations.  Per DENR terms, 90% of joint venture area is to be reforested and 10% converted to farms and ranches for daily income.  20% of timber harvests go to State.       As of 1990s, several thousand rural multi-purpose co-ops and associations mostly led by NGOs had availed of the scheme. In many cases, foreign NGOs took care of funding for operations.  Land areas granted came up to a thousand to 10,000 hectares per joint venture, the total occupying over ten million out of 18 million hectares of mostly uplands.   Unfortunately, most of the co-ops floundered or tanked due to lack of sufficient funding, ultra low production for 'daily bread', expensive distances to markets, zero exports, rebel/army clashes and intrigues, unprofessional management, and NGO wit