Govt to offer more ‘hybrid’ PPPs – Pernia
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 25 Dec 2018 16:16:13 +0000
More “hybrid” public-private partnership (PPP) projects will be implemented next year, a Cabinet official claimed, giving the Duterte government’s “Build Build Build” program a boost.
“It could be middle of next year but I am not sure yet (what projects will be rolled out). We have not yet determined the appropriate financing,” Socioeconomic Planning Secretary Ernesto Pernia told reporters in a recent interview.
The hybrid PPP approach allows the government to select, finance and build big-ticket projects via public bidding. Once completed, the government can then auction off the operation and maintenance contract to the private sector.
Pernia, the National Economic and Development Authority chief, has said that the government was trying to experiment with different modalities, particularly hybrid PPPs, for its infrastructure projects given long delays during the previous administration.
Citing studies, economic managers have said that it took 29 months on average from project identification to implementation, with one notable example that of the Cavite-Laguna Expressway, which took 50 months to be implemented.
Since the start of the Duterte government, two priority projects have been implemented under the hybrid PPP approach: the Clark International Airport Expansion Project and the Phase II of the New Bohol Airport Project.
The expansion of Clark airport in Pampanga is being undertaken by the Megawide-GMR consortium that won a bidding with a P9.36-billion offer, lower than the government’s projected cost of P12.55 billion.
It will complement the New Clark City development, one of the government’s flagship “Build Build Build” projects, that is envisioned to be a “city of the future.
Meanwhile, Phase II of the New Bohol Airport Project involves the extension of the runway to 2,500 meters from 2,000 meters, which will enable the airport to accommodate large commercial aircraft.
The project will also expand the passenger terminal building to 13,300 square meters from 8,500 square meters to address possible congestion that may arise as tourist traffic in the area rises.
Pernia earlier reported that as of end-November 2018, 35 out of the 75 infrastructure flagship projects had been approved by the NEDA Investment Coordination Committee (ICC) and confirmed by the NEDA Board.
The remaining 44 projects will be completed beyond 2022 but could start implementation while the Duterte administration remains in office, he added.
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