Government to bid out 2-3 PPP projects in first half

MANILA, Philippines -  The Aquino administration is eyeing to bid out two to three infrastructure projects in the first half of the year under its planned public-private partnership (PPP) for infrastructure.

“Our hope is we bid out at least two to three projects in the first half of the year. At this stage, we are not yet at liberty to disclose which one but we can assure you that we are committed to bidding out at least 10 in 2011, and more in 2012 because the need for infrastructure in our country is quite substantial,” Finance Secretary Cesar Purisima said over the weekend.

He said what is important is to have the crucial infrastructure in place to be able to attract investments in the country and consequently, create job opportunities.

Purisima said the idea is to have better airports, roads and bridges so that the country would be more attractive to local and foreign investors. “There are no midnight deals and there will be feasibility studies,” he said.

Furthermore, he said the administration would stick to solicited proposals instead of unsolicited proposals, which are more prone to “sweetheart deals.”

A PPP is a contractual arrangement between government and the private sector to deliver public infrastructure and public services. It is being pushed by the Aquino administration so that it would have more funds for public health and education.

In November last year, the government launched its PPP summit to announce planned projects to potential investors.

Possible projects include linking the Manila-Cavite Coastal Road with the South Luzon Expressway.

The 27.5-kilometer Cala Expressway hopes to decongest the traffic in Cavite and provide access among the different economic zones covering the two areas.

For the LRT, the Aquino administration hopes to bid out the privatization of LRT Line 1 operation and management.

Another project is the extension project of LRT 1 which involves the construction of an 11.7-kilometer extension, to be implemented from 2011 to 2015. The government is also planning an extension of LRT Line 2 East under which there will be a four-kilometer railway system to be constructed during the period 2011 to 2014.

The Aquino administration hopes to create more fiscal space with the PPP initiatives.