Thursday, September 7, 2017

PPP still on

The Philippine Public Partnership Center (PPPC) is focused in rebuilding its project pipeline despite  the Duterte administration’s  decision to shift  to the hybrid mode of public-private partnership (PPP) in bidding out major infrastructure projects.

“We are very much alive. We are rebuilding the pipeline. Private sector participation in infrastructure will always be there (though) it may not be given the same attention as the previous administration did,” said Ferdinand Pecson, PPPC executive director.

The government has shifted its approach to one where financing of infrastructure projects would be from official development assistance (ODA) and General Appropriation Act (GAAs) from a straight private sector-funded approach.

Pecson said PPPC has received new applications to avail of the Project Development Monitoring Facility (PDMF). Among the projects in the pipeline include a port project in Zamboanga; the new Nayong Pilipino project; the Cebu bus rapid transit; the  development of the duty-free retail network in the Philippines, the DTI complex; a segment of national broadband network of the Department of Information and Communication Technology; the development of cellular towers and;  the  modern vehicle inspection system of the Department of Transportation.

Pecson said the planned conversion of the existing Bohol-Panglao airport is a potential PPP project.

PPPC sees opportunities in undertaking PPP projects of local government units (LGUs).

“There is a big opportunity for smaller projects (of LGUs) that could also be PPP. We will be more aggressive in introducing to LGUs that this is how they can tap into the PPP program,” Pecson said.

The current hybrid model refers to the construction of infrastructure using public funds or cheaper financing (local borrowings and ODA) and the subsequent operations and maintenance using PPP.

The hybrid model works if the infrastructure is built and equipped to enable the delivery of the services expected from the operation and maintenance (O&M) provider.

Bidding a project on the basis of lowest construction cost, consideration for O&M, will naturally result in such an infrastructure.

With airports for example, if passenger congestion in queues in check-in counters or security checks are to be avoided, the number and arrangement of service counters have to be designed and built accordingly. Poor airport service could result in the O&M provider being replaced.

The Aquino administration can be credited for a number of PPP infrastructure projects of which 12 were successfully awarded. Three are currently operational: the Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway) Project ; PPP for School Infrastructure Project (PSIP) – Phase I; the Automatic Fare Collection System and the NAIA Expressway Project (Phase II)

http://www.malaya.com.ph/business-news/business/ppp-still

No comments:

Post a Comment