June 22, 2003

The Philippine STAR, Opinion Page

Iraq and Roll 

By Babe Romualdez

It’s not too late for government to shift gears and get someone who can bring home the post-war reconstruction contracts from Iraq. Apparently, DTI secretary Mar Roxas has come up with some very good ideas about how to bring home the gold, so to speak. For starters, the department is planning to bring together a consortium of Filipino contractors and subcontractors to represent Philippine interests in the bidding and awarding process. Mar’s network of contacts in the United States – a factor that is very important in bagging the deal -- can now be put to good use. Perhaps Mar should also bring in a group of seasoned businessmen that are knowledgeable in international business transactions. As DTI secretary, it won’t be difficult for Mar to rally both groups together and plan out a good working strategy. Fact of the matter is, most Philippine contractors and businessmen are rooting for Mar to head the team. With the government offering to give all the incentives, perks and other competitive advantages needed to the contractors, surely the team would be more than able to get the contracts sooner than expected. The end result would be more jobs for Filipino overseas workers.

For all the times I criticized Mar on certain issues, all of which were constructive I hope, there is one thing I could say about him: he knows his way around the United States. His experience in dealing with Americans as well as his contacts in the US is broad and extensive. He worked for Allen & Co. in New York for a long time, and surely, along the way, he has built a network of connections. Anyone who’s familiar with Mar knows that his suave and tactful ways bring him closer to people easily, unlike Robert R. Romulo (known also in some circles as Triple R) who can be somewhat arrogant and abrasive at times. That’s probably why a number of people involved in the project are totally turned off with Robert, who is now relying entirely on the formal contacts from our embassy in Washington and perhaps some unknown Beltway insiders. Apparently, he does not have any of his own. He seems to be all-show and no substance. His clout in reality is not as strong and widespread as he projects it to be. This only proves one thing: we need someone who can deliver. Mar’s “smooth” disposition is working to his advantage now, and because of this, most of the local and foreign contractors are looking to him to bag this deal. The setback the country is experiencing in this matter is quite unfortunate because thousands of OFWs are literally looking forward to this big break. It’s the kind of deal that comes once in a long while, and it’s to the country’s advantage that the government seizes the chance to be a part of it.

No contacts, no contracts – that’s the name of the game. Mar and Robert may belong to well-known families, but in this particular deal, names are not important. More often than not, it’s who and what you know that will give you an edge. With Mar’s right kind of contacts, there’s a good chance that we can get about 25-percent of the reconstruction work in Iraq.

However, it’s not as easy as it looks. The government simply cannot depend on the special privileged status granted to us by George W as a non-NATO ally. In this deal, we cannot even bank on the supposed “payback” the US allegedly promised the Philippine government for its support of the Iraq War. People in the know are fully aware that hundreds of countries lobby for almost everything in Washington everyday – from economic and military aid packages to funds to save the whales. For this project in particular, a number of countries are already positioning themselves and “moving in for the kill.” India – a country known to be poorer than the Philippines -- is now revving its economic and political machinery just to get a modest slice of the reconstruction “pie” in order to maximize the stake of Indian businesses in the Oil and Food Program. Australia is now knocking heads with the United States to protect their US$480 million-a-year wheat export market in Iraq.  The United Kingdom is also lobbying for a big chunk of the US$600 million (some say it’s in the billions) soliciting bids from US companies to rebuild the war-torn nation. Spain’s electricity company Iberdrola SA, a favorite among US companies involved in the reconstruction effort, will play a major part in reviving Iraq’s devastated power infrastructure. Turkey is hoping to get 20 percent of the reconstruction contracts from the US. More than 300 companies from the Netherlands and 500 companies from Poland have also expressed their intention to join the rebuilding bonanza. Japan too came in the picture, promising to send more ground troops to help the US in humanitarian efforts. Of all these countries, it’s Korea that seems to be winning a number of orders from the Middle East since they actively promoted their intention to be part of the post-war reconstruction effort. Just because we do not have real contacts, apparently, the country is being left out in the cold.

Of course, there are other barriers to seriously look into. Some labor analysts say it’s the salary rate of OFWs that are turning off the American contractors to get Filipino workers. The Indian, Bangladeshi and Korean labor pool, it seems, can do more for less. I know it is easier said than done, but perhaps the Labor Department could peg a special competitive rate for the OFWs for this specific project. Pending labor cases, such as the one filed by Filipino overseas workers who worked in Guantanamo Bay against Halliburton – the company that built the al’Queda prison for the terrorists captured in Afghanistan -- can also be a hindrance. Another high-profile labor case was the one between OFWs and Bechtel, Brown & Root group of companies. Good business and labor cases are strange bedfellows, but more than this, legal issues between overseas workers and their employers do not really sit well with the foreign business community.

Maybe it’s time Robert gives way to Mar Roxas’ ideas, and let him head the team. Because the OFWs are depending a lot on this group for the jobs. We must not waste this rare window of opportunity. Let’s get to Iraq and roll!

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