Government may bid out 1 infra project under PPP in first half

MANILA, Philippines -  The government may end up bidding out just one infrastructure project in the first half of the year under its public-private partnership (PPP) scheme as details of possible projects are still being threshed out.

In a press conference following an economic briefing yesterday, Transportation Secretary Jose de Jesus said the government would be bidding out one infrastructure project before June.

Four other projects would most likely be auctioned in the second half of the year, de Jesus added.

He said three projects would be offered in July and August and another one in November.

In the same briefing, Socioeconomic Planning Secretary Cayetano Paderanga said the government is reviewing the projects that will be put on the auction block this year.

He said the government’s PPP Center, which shall recommend plans, policies and implementation guidelines related to PPP - is still being set up.

Earlier, the government had planned to bid out at least two to three projects in the first half of the year.

Finance Secretary Cesar Purisima said the focus would be on solicited projects to ensure that these fall within the standards set by the government.

Unsolicited proposals, he said, are more prone to “sweetheart deals.”

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.

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 expressway hopes to decongest the traffic in Cavite and provide access among the different economic zones covering the two areas.

For the Light Rail Transit, 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.