Monday, November 28, 2016

P5.6T PPP projects in the pipeline By ANGELA CELIS November 28, 2016

The Duterte administration has 38 public-private partnership (PPP) projects in the pipeline with an indicative cost of P5.608 trillion, data from the PPP Center showed.

According to the PPP Center’s status of projects as of November 16, only 17 or less than half of the total projects in the pipeline have an estimated cost, with the rest yet to be determined.

Of the said projects, 11 are under procurement, which means that prospective bidders can conduct due diligence in preparing their prequalification documents or bidding documents. 

The PPP Center said this stage also involves government’s evaluation of bids submitted by the qualified bidder.

These projects include the operations, maintenance and development of the New Bohol (Panglao) Airport (P4.57 billion), Laguindingan Airport (P14.62 billion), Davao Airport (P40.57 billion), Bacolod Airport (P20.26 billion) and Iloilo Airport (P30.4 billion).

Also under procurement are the operation and maintenance of Light Rail Transit (LRT) line 2 (no capex), Davao Sasa Port Modernization Project (P18.99 billion), Road Transport Information Technology Infrastructure Project (Phase II) (P0.298 billion), New Centennial Water Source-Kaliwa Dam Project (P18.72 billion), Regional Prison Facilities through PPP Project (P50.20 billion) and the LRT-6 (P65.09 billion).

Meanwhile, projects approved for procurement are the NAIA PPP (P74.56 billion) and the New Nayong Pilipino at Entertainment City (P1.47 billion).

The list also showed that three projects are currently undergoing evaluation by the appropriate government body: the Philippine National Railways-South (P213.99 billion), Philippine Travel Center Complex (P1.75 billion) and the Batangas-Manila 1 Natural Gas Pipeline (P14.72 billion). 

The Manila Bay Integrated Flood Control, Coastal Defense and Expressway Project, with the biggest indicative cost at P5.034 trillion since it includes P4.498 trillion in reclamation cost, is also under evaluation.

Another upcoming project for evaluation is the East-West Rail Project, with indicative cost still to be determined (TBD), while those undergoing pre-investment studies are the Integrated Transport System-North Terminal Project (P4.21 billion), Rural Dairy Industry Development Project (TBD) and the Judiciary Infrastructure Development through PPP Project (TBD).

There are 17 projects at the earlier stages of project conceptualization and development, with implementing agencies currently assessing their level of priority and whether these will be undertaken using the PPP scheme.

These are the Manila Heritage and Urban Renewal Project, Clark Green City Food Processing Terminal, Central Spine Roll-on/Roll-off, Manila East-Rail Transit System, R1-R10 Link Mass Transport System Development Project, LRT-4, Central Luzon Link Expressway Phase II, Cabanatuan-San Jose Section and operation and maintenance of Phases I and II Project, and the operation, maintenance and improvement of Kennon Road and Marcos Highway.

Also under conceptualization are the rehabilitation of the National Center for Mental Health, North Luzon Expressway East Expressway, Camarines Sur Expressway, PPP for School Infrastructure Project Phase III, Sucat Gas Power Plant, Duty Free Retail Development Project, Motor Vehicle Inspection System, Laguna Lakeshore Expressway Dike and the Clark International Airport Project.

In August, Carlos Dominguez III, Department of Finance (DOF) secretary, said the Duterte administration would reverse the underspending of the past by launching “hundreds of infrastructure projects over the next few years,” including PPP and government-led projects.

The finance chief then said PPPs are ideal for large projects of long-term duration.

“That makes it possible to take advantage of the strengths of partnerships with private corporations,” Dominguez said.

“Small, short-term projects often turn out to be more expensive for government eventually because of related costs such as the hiring of consultants and multiple Cabinet-level approvals,” he added.

In a statement over the weekend, the DOF reiterated that the Duterte administration is planning to spend P860.7 billion on large-scale infrastructure projects next year, which represents 5.4 percent of the country’s gross domestic product.

This amount is about P100 billion more than the 2016 outlay of P756.4 billion, said AntonetteTionko, DOF undersecretary.

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