Govt to bid out only 5 PPP projects this year

The government will likely bid out only five infrastructure projects this year under its public-private partnership initiative, including one in the first half as most of the possible projects are still under review, Cabinet officials said Wednesday. One project would be offered to investors before June, Transportation Secretary Jose de Jesus said in a press conference in Makati. Four other projects would likely be auctioned off in the second half, according to the transportation chief, saying three would be offered in July to August, and another one in November. The government, it seems, is not yet ready to go full blast on its PPP program — heralded by the Aquino administration and the business community as the Philippine economy’s growth driver — with most projects still in the review stage. In the same press conference, Socioeconomic Planning Secretary Cayetano Paderanga told reporters the government is reviewing the projects that will be put on the auction block this year. The PPP Center, which will recommend plans, policies, and implementing guidelines related the initiative, is still being set up, Paderanga said. The government had earlier said it plans to bid out at least two to three projects in the first half of 2011. The PPP program will focus on solicited projects to ensure that these are within government-set standards, Finance Secretary Cesar Purisima earlier said. Unsolicited proposals, according to the finance chief, are more prone to “sweetheart deals." Crucial to the economy Crucial to economic growth is having vital infrastructure in place to attract investments in the country and consequently, create job opportunities, according to the government. 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. The partnership initiative is a contract between the government and the private sector to develop public infrastructure in the delivery of public services. The Aquino administration is pursuing it so to save money and have more funds for public health and education instead of shouldering by itself the cost of developing the country’s transportation infrastructure. Last November, the government launched its PPP summit and announced possible projects to potential investors. One of the projects is the construction of a 27.5-km expressway linking the Cavite Coastal Road to the South Luzon Expressway, with a view to decongesting traffic in Cavite and providing easier access to the economic zones in Laguna and Cavite. The Aquino administration also plans to privatize the operation and management of Light Rail Transit Line 1 as a PPP project. Part of the government’s ambitions for LRT 1 is to extend the line by 11.7 kms, with the four-year construction phase expected to start this year. The government is also planning to extend the LRT Line 2 East with a 4-km railway system toward Antipolo in a three-year construction project also to start this year. — VS, GMA News