Gov’t upbeat on PPPs

Gov’t upbeat on PPPs

INCREASED investor interest in public-private partnerships (PPPs) has raised government expectations about its centerpiece infrastructure program.

The Aquino administration is confident that seven projects, instead of five, will be completed when its term ends in 2016, PPP Center Cosette V. Canilao yesterday told reporters.

The government also expects to have awarded at least 15 contracts by then, she added.

"These are our working targets which we think are achievable," Ms. Canilao said.

Last October, she said that following delays, only five projects would likely be finished before President Benigno S. C. Aquino III steps down:

• the P1.96-billion Daang Hari-South Luzon expressway project;

• P16.42-billion PPP School Infrastructure Program (PSIP) Phase 1;

• P3.86-billion PSIP Phase II;

• P15.68-billion Ninoy Aquino International Airport (NAIA) expressway; and

• the P5.69-billion Philippine Orthopedic Center modernization project.

The five have already been awarded. The list now includes the just auctioned off 1.72-billion Automatic Fare Collection System (AFCS) and the P7.7-billion Integrated Transport System.

All seven are included in the 15 projects that the government is targetting to award by 2016, the others being:

• the P35.42-billion Cavite-Laguna Expressway;

• P17.5-billion Mactan-Cebu International Airport project;

• Light Rail Transit Line 1 (LRT-1) Cavite Extension;

• P29.83-billion Bulacan Bulk Water Supply Project;

• P15.92-billion Laguindingan Airport operations and maintenance (O&M) contract;

• P44.31-billion New Centennial Water Supply Source deal;

• P2.34-billion enhanced O&M contract for the New Bohol Panglao Airport; and

• O&M of LRT Line 2.

"These are very doable projects before the President’s term ends," Ms. Canilao claimed, adding that with more commercially viable projects being offered, the private sector was now more upbeat on participating.

The government, she also noted, would be earning close to P28 billion from the combined premiums offered for the NAIA expressway, Daang Hari, AFCS and Mactan-Cebu deals.

source:  Businessworld