THE Department of Finance (DOF) will impose an 18-month benchmark for private companies in starting infrastructure projects, notably those being undertaken through the Public-Private Partnership (PPP) Program.
Finance Secretary Carlos G. Dominguez III said that, since the government could be able to start an infrastructure project within an 18-month period, or a year and a half, why should it settle for the PPP that takes around 30 months before the actual start.
“We have no time, we are very far behind in infrastructure and we have to move faster. We [the government] have proven we can start a project in 18 months, so that is the benchmark the private sector has to meet. We have to start it; the country needs the infrastructure. So you want us to punish the public and wait around for some guys to do the PPP for 50 months, I think that is not fair to the public,” Dominguez told financial reporters.
According to the finance chief, the Duterte administration’s “hybrid” PPP Program will help speed up the rollout of the government’s big-ticket infrastructure projects under its “Build, Build, Build” program, as this modified strategy will avoid the protracted negotiations and disputes that often result in the delayed implementation of previous PPP initiatives.
“How many PPP projects were actually started by the last administration? Half a dozen. They have six years to do it. Half a dozen in six years, and the average took 30 months, and one of them took 50 months. Fifty months from the conception to the start. I am not talking about completion,” he added.
The Cavite-Laguna Expressway project, which took all of 50 months to conceptualize and begin implementation, is one prime example of why the government decided to modify the traditional PPP formula and fast-track the process.
He said that, rather than resort to the traditional PPP mode, and encounter the same problems in the private sector, the Duterte administration decided to take the initiative and put in place a hybrid PPP in which the government will build and finance the infrastructure projects, and later auction off the operation and maintenance aspects to the private sector.
“We are not willing to wait for the private sector to settle their differences. While private companies quarrel among themselves as to who will make the profit, the public suffers from lack of infrastructure. The Duterte administration is willing to take the construction risks and spend budgeted funds to start projects early,” he said.
Interesting that the long delays for the Cavite Laguna Expressway were one of the reasons why the Duterte administration is pursuing a hybrid PPP plan. But CALAx itself is not being funded by a hybrid PPP scheme right? Is CALAx 100% MPIC funded under subsidiary MPCALA?
The article also cites the new Clark Green City as a model for hybrid PPP. Tingnan natin kung ano ang magiging resulta nun:
Dominguez added the proposed New Clark City in Pampanga is concrete proof that the hybrid PPP mode is faster and is more efficient considering that it took the government only 18 months to break ground on the project.
“We took over in July of 2016. In December, we will break ground already for the Clark project,” he added.
Dominguez said the Plaridel Bypass Road that will link the North Luzon Expressway with the Philippine-Japan Friendship Highway in Bulacan, which was supposed to be implemented via the traditional PPP mode, will already be finished next year under the hybrid PPP.
“Had we done that with PPP, would still be negotiating with them [the private sector] now. But has started it, and we’ll finish it by next year,” Dominguez added.
Earlier, Dominguez said that the hybrid PPP mode does not totally shut out private contractors from taking part in the implementation of infrastructure projects, as unsolicited proposals are still welcome from the private sector which would have a better grasp at identifying potential problems and offering better solutions to prospective ventures.
Finance Secretary Carlos G. Dominguez III said that, since the government could be able to start an infrastructure project within an 18-month period, or a year and a half, why should it settle for the PPP that takes around 30 months before the actual start.
“We have no time, we are very far behind in infrastructure and we have to move faster. We [the government] have proven we can start a project in 18 months, so that is the benchmark the private sector has to meet. We have to start it; the country needs the infrastructure. So you want us to punish the public and wait around for some guys to do the PPP for 50 months, I think that is not fair to the public,” Dominguez told financial reporters.
According to the finance chief, the Duterte administration’s “hybrid” PPP Program will help speed up the rollout of the government’s big-ticket infrastructure projects under its “Build, Build, Build” program, as this modified strategy will avoid the protracted negotiations and disputes that often result in the delayed implementation of previous PPP initiatives.
“How many PPP projects were actually started by the last administration? Half a dozen. They have six years to do it. Half a dozen in six years, and the average took 30 months, and one of them took 50 months. Fifty months from the conception to the start. I am not talking about completion,” he added.
The Cavite-Laguna Expressway project, which took all of 50 months to conceptualize and begin implementation, is one prime example of why the government decided to modify the traditional PPP formula and fast-track the process.
He said that, rather than resort to the traditional PPP mode, and encounter the same problems in the private sector, the Duterte administration decided to take the initiative and put in place a hybrid PPP in which the government will build and finance the infrastructure projects, and later auction off the operation and maintenance aspects to the private sector.
“We are not willing to wait for the private sector to settle their differences. While private companies quarrel among themselves as to who will make the profit, the public suffers from lack of infrastructure. The Duterte administration is willing to take the construction risks and spend budgeted funds to start projects early,” he said.
Interesting that the long delays for the Cavite Laguna Expressway were one of the reasons why the Duterte administration is pursuing a hybrid PPP plan. But CALAx itself is not being funded by a hybrid PPP scheme right? Is CALAx 100% MPIC funded under subsidiary MPCALA?
The article also cites the new Clark Green City as a model for hybrid PPP. Tingnan natin kung ano ang magiging resulta nun:
Dominguez added the proposed New Clark City in Pampanga is concrete proof that the hybrid PPP mode is faster and is more efficient considering that it took the government only 18 months to break ground on the project.
“We took over in July of 2016. In December, we will break ground already for the Clark project,” he added.
Dominguez said the Plaridel Bypass Road that will link the North Luzon Expressway with the Philippine-Japan Friendship Highway in Bulacan, which was supposed to be implemented via the traditional PPP mode, will already be finished next year under the hybrid PPP.
“Had we done that with PPP, would still be negotiating with them [the private sector] now. But has started it, and we’ll finish it by next year,” Dominguez added.
Earlier, Dominguez said that the hybrid PPP mode does not totally shut out private contractors from taking part in the implementation of infrastructure projects, as unsolicited proposals are still welcome from the private sector which would have a better grasp at identifying potential problems and offering better solutions to prospective ventures.
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