The Safe Philippines Project Narrative

Aside from the soft loan from China EXIM, the Philippines will fund a percentage of the project cost through the national budget—the General Appropriations Act—prepared by the executive branch’s Department of Budget and Management and enacted by the Congress of the Philippines.

The Safe Philippine Project’s implementing agency is the Department of the Interior and Local Government (DILG), under the executive branch of the government. The DILG also oversees the other government agencies involved in the project, namely: the Philippine National Police (PNP), the Bureau of Fire Protection (BFP), and the Bureau of Jail Management and Penology (BJMP). The agency also maintains general supervision over all local government units.

Flawed Contractor Selection

Similar to the Chico River Pump Irrigation Project (CRPIP) and the New Centennial Water Source-Kaliwa Dam Project (NCSW-KDP) previously examined in the BRI Monitor, the contractor’s selection for this project failed to respect existing laws—in this case, the preference for Filipinos and the requirement for competitive bidding.

The Safe Philippines Project appears to be following a combined approach of the CRPIP and the NCWS-KDP selection process. Not much information has been released other than the announcement that the bidding was held and that China International Telecommunication Construction Corporation (CITCC) was eventually selected as the project contractor after the two competitors were disqualified.

Privacy Threats

The Safe Philippines Project threatens to violate the privacy and confidentiality of individuals and information. Despite this, there seems to be an eerie silence about how this project may contradict the policies and laws of the State. At the very least, there has to be a publicly-available vetting process. However, there has been no statement regarding the project from the government agencies mandated to look after these concerns. There is no information made to the public regarding any coordination between the DILG and the concerned agencies.

A Threat to National Security

China’s involvement in the Safe Philippines Project is controversial because there is an impression among Filipinos that data collected might be used for Chinese intelligence operations in the Philippines. This was also the general sentiment behind the strong opposition to the deal between the Armed Forces of the Philippines (AFP) and DITO Telecommunity that allowed DITO facilities inside military camps. Adding to the national security scare is the fact that the designated supplier of the CCTVs and other equipment for the project is Huawei Technologies Co. Ltd. The company has been banned by several countries led by the United States based on allegations of espionage.

Cybersecurity Threat

Apart from rising concerns over Chinese involvement, there are apprehensions over the government’s overall capacity to operate, maintain, and ensure the cybersecurity of the system from even small, domestic, and localized attacks. Multiple instances of Philippine government data being hacked in recent years are worth noting in this issue.

Transparency and Accountability

News reports abound about the lack of publicly available project information and documents, which hinder a closer inquiry into the project. In particular, conspicuously missing on the internet are the Preferential Buyer’s Credit Loan Agreement for the Safe Philippine Project, the feasibility study submitted by the DILG to the National Economic and Development Authority (NEDA), bid documents, and even news about the bidding process.