PPP projects move forward

TWO TRANSPORTATION projects under the Aquino administration’s flagship public-private partnership (PPP) program are moving forward, with bids for one to be submitted today and the other expected to be rolled out later this week.

The auction for the P15.86-billion Ninoy Aquino International Airport Expressway (NAIA) Phase 2 will push through today, PPP Center Executive Director Cosette V. Canilao said during the weekend.

The submission of bids was originally set for Feb. 26 but was moved as interested parties asked for more time.

A contract will be awarded in May, Ms. Canilao said, adding that the project is “expected to be completed in 2015.”

The NAIA Expressway project involves the construction of a 7.75-kilometer elevated road that will connect the airport in Pasay City to the state-run Bagong Nayong Pilipino Entertainment City in Parañaque City.

Four groups prequalified to bid last October: the Ayala Corp.-led ACI consortium, IL & FS Transportation Networks Ltd., Manila North Tollways Corp. and Optimal Development Infrastructure, Inc. led by San Miguel Corp.

Another road project, meanwhile, will be offered to investors this week, Ms. Canilao said.

“The ITPB (Invitation to pre-qualify and bid) of CALA-Ex (Cavite-Laguna Expressway) will be published next week (this week),” the PPP Center chief said in a text message last Friday.

Overall, the project involves the construction of a four-lane, 47-km road that will connect the Manila-Cavite and South Luzon expressways. The portion to be bid out is for the design and construction of a 36-km expressway from Kawit, Cavite to Sta. Rosa, Laguna, estimated to cost P35.5 billion.

The remaining 11-km stretch from Sta. Rosa to the Mamplasan exit in Laguna, expected to cost P21.01 billion, will be financed via official development assistance. The operation and maintenance of the entire expressway will be bid out to the private sector.

A successful auction of the NAIA Expressway project would make it the third PPP deal to be awarded by the Aquino administration, whose flagship infrastructure program has been hit by delays -- blamed on the need for extensive reviews -- since its launch in late 2010.

So far, only the P1.96-billion Daang Hari-South Luzon Expressway Link Road Project -- bagged by Ayala Corp. in December 2011 -- and the P16.42-billion PPP School Infrastructure Project Phase One -- awarded to the Citicore Holdings Investment, Inc.-Megawide Construction Corp., Inc. and BF Corp.-Riverbanks Development Corp. consortiums last year -- have been contracted.

source:  Businessworld