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Philpost modernization project gets ICC nod
[March 01, 2006]

Philpost modernization project gets ICC nod


(Business World (Philippines) Via Thomson Dialog NewsEdge)A multibillion project of stateowned Philippine Postal Corp. (Philpost) yesterday received an endorsement from a National Economic and Development Authority (NEDA)-led committee for final approval by the Cabinet.

The NEDA Investment Coordination Committee (ICC)-Technical Board has reviewed the project proposal of Japanese software developer Renaissance of Age (ROA) Systems Co. Ltd. for the implementation of Philpost's computerization project.

The Japanese firm last year submitted an unsolicited proposal for a Build-Lease-Transfer agreement with Philpost for a P3.379-billion project aimed at using computer technology in more than 2,000 post offices nationwide.


Under the proposed project, ROA Systems plans to build modern postal application and business systems for the postal company.

ROA Systems would introduce various technologies to boost the corporation's revenues, decrease fraud, and improve the overall image of the government firm.

The Japanese firm proposes to introduce a "hybrid mail system," which would allow the postal corporation to send billing statements from credit card firms, and utilities more efficiently.

Under this service, Philpost would be able to provide for the electronic handling of bulk mails like billing statements from printing, enveloping, and routing. The hybrid mail machine will be located at the postal corporation's central mail exchange center in Pasay City.

ROA Systems also plans to install public calling stations using voice- over internet protocol (VoIP) in post offices nationwide.

The modernization program would also eliminate fraudulent practices in the agency by establishing a track and trace system. This system will provide query features to customers and international mail partner countries by collecting information or tracking the status of mail matters from post office acceptance, to sorting, and actual delivery.

The plan would also establish a postal identification system that would allow remittances from overseas Filipino workers to be sent through the postal office.

Finally, the ROA system plans to set up "electronic post shops" similar to an internet cafe in order to develop new sources of income for Philpost. Aside from traditional postal services, these electronic post shops would provide support services like personal computer rental, printing, scanning, telephone, fax, and other services such as sale of stamps, stationeries, and postcards.

Philpost was created by virtue of Republic Act No. 7354, otherwise known as the Postal Service Act of 1992. Formerly called the Postal Services Office, a National Government agency, Philpost was converted into a corporation upon the effectivity of RA 7354. It is an attached agency of the Department of Transportation and Communication (DoTC) for purposes of policy coordination.

Philpost is tasked to provide for the collection, handling, transportation, delivery, forwarding, returning and holding of mails, parcels and like materials throughout the Philippines and, pursuant to agreements entered into locally and abroad.

It is also mandated to plan, develop, promote and operate a nationwide postal system with a network that extends or makes available, at least ordinary mail service, to any settlement in the country.

However, declining demand for postal services has dragged the corporation's bottom line. In a report, the Commission on Audit said Philpost incurred a net loss of more than P224 million in 2001 alone.

Declining revenues have prompted the National Government to put Philpost in the auction block. The government's Privatization and Management Office is currently selling the government's 55% stake in the corporation.

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