Press Release
November 20, 2007

LTO REGISTRATION OF HEAVY EQUIPMENTS PUSHED

Senator Ramon "Bong" Revilla Jr. sought the compulsory registration of all heavy equipments with the Land Transportation Office (LTO) to get rid of devious contractors hampering the completion of infrastructure projects in the country.

The senator revealed that despite the obligatory registration of motor vehicles, no such registration for heavy equipment is required under existing Philippines laws.

Revilla pointed out that aside from generating substantial income for the government, the compulsory registration of heavy equipment could curb, if not totally eliminate, the practice of unscrupulous contractors who leave projects unfinished.

"After merely obtaining mobilization fee for a particular infrastructure project, some contractors completely disappear and leave their projects hanging," said Revilla, chairman of the Senate Committee on Public Works.

To arrest the said malpractice, the lawmaker filed Senate Bill (SB) no. 14 aimed to conduct a compulsory registration with the LTO of all heavy equipments.

Under SB14, the LTO is empowered to prepare the details of a registration scheme, including the list of registration fees, subject to the approval of the Department of Transportation and Communication (DOTC) and in consultation with the Department of Finance (DOF).

"The registration fees shall be determined on the basis of model, body configuration, weight, cubic displacement or number of cylinders of heavy equipment and other pertinent factors, "the lawmaker said. Revilla explained that his proposed measure would also prevent the practice of leasing the same heavy equipment to two or more different contractors, working on various projects on the same dates but at different sites.

He pointed out that unqualified contractors and sub-contractors exist due to multi-leasing of heavy equipments.

"Such practices cause the delay of most infrastructure and public works projects. It would further prevent any, if not all, misrepresentation by the contractors with regards to ownership of heavy equipments thereby helping the Government Bids and Awards Committee in the determination and compliance of pre-qualification requirements," he added.

SB14 seeks to amend Republic Act (RA) No. 4136, also known as the "Land Transportation and Traffic Code."

Heavy equipment or the so-called earth movers are heavy-duty vehicles, specially designed for executing civil engineering and construction works. Examples are bulldozers, excavators and hydraulics.

Revilla sets a related senate hearing tomorrow (Wednesday, November 21) at 1 p.m. at the Senator Lorenzo Tañada room, Philippine Senate. Invited as resource persons are DOF Secretary Margarito Teves, LTO head Reynaldo Berroya, Department of Public Works and Highways-Bids and Awards Committee (DPWH-BAC) Chairman Rafael Yabut, Construction Industry Authority of the Philippines (CIAP) Officer-in-Charge Zenaida Maglaya, Philippine Contractors Accreditation Board (PCAB) and Philippine Domestic Construction Board (PDCB) Officer-in-Charge Sonia Valdeavilla and Philippine Contractors Association (PCA) Executive Director Saviniano Perez Jr.

News Latest News Feed