Aquino to end term with 7 completed PPP projects

MANILA, Philippines – The Aquino administration will end its term with at least 7 completed Public-Private Partnership (PPP) projects, according to PPP Executive Director Cosette Canilao.

In a press briefing on Thursday, December 19, Canilao said the government is confident that it can complete 7 projects and sign at least 8 more before President Benigno Aquino III’s term ends by mid-2016.

Aside from the completed and signed projects, the operation and maintenance (O&M) of 10 infrastructure facilities will also be turned over to the private sector by 2016.

“We have is a list of what we have to accomplish by end of 2016. We have a robust pipeline of projects. We will have 15 PPP contracts signed including the 7 completed projects,  and 10 passed on to the private sector for O&M. I think it’s achievable,” Canilao noted.

The PPP program was launched by the Aquino administration in 2010 to create viable infrastructure needed to support the government’s goal of achieving inclusive and sustainable economic growth.

That year, the administration announced a target of 10 projects. These included Light Railway Transit (LRT) and Metro Rail Transit (MRT) extension, new airports and terminals in Bohol, Pampanga, Laguindingan, Puerto Princesa and Daraga, a road linking North and South Luzon Expressways, and a water supply project in Manila.

But the government has so far awarded only five projects since 2010. These include:

• PPP School Infrastructure Phase 1
• PPP for School Infrastructure Phase 2
• Modernization of Philippine Orthopedic Center
• Daang Hari-SLEX Link Road
• NAIA Expressway

The Aquino administration has been criticized for the slow implementation of the PPP program after bidding for several projects suffered delays. (READ: Aquino highlights PPP woes)

Canilao stressed that the last two years were spent on capacity-building that was vital in successfully rolling out the infrastructure deals.

“In 2010, the administration achieved the goal of launching the PPP program, and the goal of committing to the public that we will ask private sector for help. For 2011 and 2012, we needed a lot of mechanism of capacity building,” she said.

The 7 projects set to be completed before the end Aquino administration are as follows:

• P2.01 billion Daang Hari-South Luzon Link
• P16.28 billion School Infrastructure Project Phase 1
• P3.86 billion School Infrastructure Project Phase 2
• P15.52 billion Ninoy Aquino International Airport Expressway
• P 5.69 billion Modernization of Orthopedic Center
• P1.72 billion Automatic Fare Collection System (AFCS)
• P5.08 billion Integrated Transport System

The 15 projects to be signed include the P17.5-billion Mactan-Cebu International airport expansion, the P65-billion LRT Line 1 Cavite extension, O&M contracts for Bohol and Laguindian airports, and the P29.83-billion Bulacan Bulk Water supply project, among others.

A total of 50 projects are also in the pipeline or are being readied for bidding, Canilao noted.

Of the 50 projects, 19 will be coming from the Department of Transportation and Communications (DOTC), while 11 will be from the Department of Public Works and Highways.

“But aside from what’s in the pipeline, both DOTC and DPWH are developing more projects. We will see more from the agencies. We are also working on social infrastructure projects. We have seen the success of the DepEd (Department of Education) projects, and we are now working with DepEd. So we will see more social infrastructure projects,” Canilao said.

The government is also expected to earn an estimated P27 billion from premium bids or bids wherein the private firms pay the government to undertake the projects.

Of the P27 billion, P902 million will come from the Daang-Hari project, P11 billion from the NAIA expressway deal, P14.4 billion from the Cebu airport expansion and P1.088 billion from the AFCS.

For his part, PPP Deputy Executive Director Jose Emmanuel Reverente said the challenge next year is “how to market these (PPP projects) not only to foreign players, but also to local players.” – Rappler.com