Public-private partnerships save gov’t P300B – DPWH

Chrisee Dela Paz
Public-private partnerships save gov’t P300B – DPWH
The Department of Public Works and Highways also earmarks P21.13B for right-of-way delivery for all PPP projects

MANILA, Philippines — The private sector has shouldered about P300-billion ($6.43-billion) worth of infrastructure spending through participation in public-private partnership (PPP) deals, a Cabinet official said.

DPWH Secretary Rogelio Singson told lawmakers during a budget hearing at the House of Representatives on Wednesday, September 16, that “a total of P300-billion ($6.43-billion) infrastructure projects are under PPP.”

“This relieves the government, as this amount is being shouldered by the private sector,” Singson added.

Instead of government funding, the DPWH chief said 3 infrastructure projects were completed and an expressway dike deal is being implemented at the expense of the private sector.

The department has awarded 3 PPP projects, namely: P2.01-billion ($43.10-million) Muntinlupa-Cavite expressway project; P15.86-billion ($340.09-million) Ninoy Aquino International Airport (NAIA) Expressway (Phase II) project; as well as the P55.51-billion ($1.19-million) Cavite-Laguna expressway (CALAX) project.

The Muntinlupa-Cavite expressway – a 4-kilometer road that will connect Bacoor, Cavite to the South Luzon expressway – was awarded to the Ayala Corporation in 2011. This is the first PPP project completed under the administration of President Benigno Aquino III.

Meanwhile, delayed right-of-way acquisition and stalled relocation of utilities take a toll on the construction of the NAIA Expressway Phase II, which was bagged by the San Miguel group in May 2013.

“We’re about to complete the right of way, but the construction will not be completed before APEC (Asia-Pacific Economic Cooperation) leaders’ summit in November,” Singson told reporters.

The planned expressway seeks to ease vehicle flow to and from the airport as it will connect the 3 terminals of the NAIA Complex.

Another infrastructure project under the PPP thrust is the Cavite-Laguna expressway, which was awarded to a unit of the Metro Pacific Investments Corporation (MPIC) in July this year.

According to MPIC, it targets to start the construction of the expressway by 2017, should the government deliver the necessary right of way in a year’s time.

As of now, Singson said his office has not delivered any right of way yet for CALAX, which involves the construction of a 44.6-kilometer, 4-lane toll road between the Cavite expressway in Kawit, Cavite and the South Luzon expressway-Mamplasan Interchange in Biñan, Laguna.

BIG TICKET. DPWH Secretary Rogelio Singson says private sector helps the department to implement a total of 4 big-ticket infrastructure deals. Photo by Chrisee Dela Paz/Rappler

DPWH has earmarked a total of P21.13 billion ($453.09 million) for right-of-way delivery for all PPP projects, Singson told lawmakers.

“On PPP, the government has the responsibility to deliver right of way; private sector is responsible for construction,” he explained.

The DPWH is also implementing the Laguna Lakeshore expressway dike project, which is targeted to be awarded in December.

The department aims to release the final version of the concession agreement by October.

Bid proposals for the expressway dike deal must be submitted by November 6, while notice of award will be issued on December 18, Singson said.

Three groups qualified to bid for the project, namely: Malaysia’s Alloy-PAVI-Hanshin LLEDP consortium; San Miguel Holdings Corporation; as well as Trident Infrastructure and Development Corporation composed of Aboitiz Equity Ventures, Incorporated, Ayala Land, Incorporated, Megaworld Corporation, and SM Prime Holdings, Incorporated.

The Laguna Lakeshore deal involves construction for of a 47-kilometer (km) flood control dike and a 6-lane expressway on top of it that will run from Taguig City to Los Baños, as well as the reclamation of 700 hectares west of the expressway-dike. — Rappler.com

$1 = P46.63

 

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