THE DUTERTE ADMINISTRATION that began on June 30 has kicked off its public-private partnership (PPP) mill by approving a P74.56-billion project to upgrade all four terminals of the country’s main air gateway, on top of eight other key projects cumulatively worth P96.7 billion, the National Economic and Development Authority (NEDA) said in a statement yesterday.
“Once implemented and completed, these approved projects will help attain our medium- and long-term development goals of making the agricultural sector competitive, improving mobility by making our transport system safer and more efficient, increasing disaster resiliency, and improving health services,” the statement quoted Socioeconomic Planning Secretary Ernesto M. Pernia, who heads NEDA as director-general, as saying.
NEDA said its Board, led by President Rodrigo R. Duterte, gave final approval during its meeting last Wednesday for the Ninoy Aquino International Airport (NAIA) Development Project, which includes operation and maintenance, to be offered to investors, with a 15- to 20-year concession agreement targeted to be signed in September next year.
Together with eight other projects, the NAIA upgrade brings the first batch of contracts approved by the Duterte-led NEDA board to P171 billion so far.
Contracts for 13 PPP projects cumulatively worth P357.22 billion have been awarded since the infrastructure program was launched in 2010’s third quarter, including the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building project bagged in April 2014 by Megawide Construction Corp. and GMR Infrastructure Ltd.
The eight other major projects are:
• P37.8-billion Metro Manila Bus Rapid Transit system that, by 2020, will cover 48.6 kilometers of EDSA between the Monumento area and Diosdado Macapagal Avenue/Roxas Boulevard, with integrated routes between Bonifacio Global City, the Makati Business District and Ortigas Business District;
• P23.5-billion six-year first phase of the Metro Manila Flood Management Project involving rehabilitation of 36 pumping stations and construction of 20 new pumping stations, with housing and resettlement components;
• P10.2-billion Inclusive Partnership for Agricultural Competitiveness that will link 300,000 farmers and 650 farm organizations in 44 provinces in 14 regions to markets and relevant private enterprises, with focus on copra, organic rice, cacao, cassava, coffee, oil palm, Muscovado sugar, abaca and rubber;
• P8-billion second phase of the Maritime Safety Capability Improvement Project that involves the acquisition of two heavy weather, high endurance 94-meter Multi-Role Response Vessels -- each capable of carrying 500 disaster victims and cruising continuously for 4,000 nautical miles for 15 days at 15 knots -- for delivery in November 2020 and March 2021;
• Change in Scope of the New Bohol Airport Construction and Sustainable Environment Protection Project that relocates by June next year the existing domestic Tagbilaran Airport to a new facility of international standards on Panglao Island, with a longer runway and bigger passenger terminal building than earlier planned, increasing total project cost to P7.8 billion from P7.4 billion;
• P4.8-billion Increase in Passenger Terminal Building Area of the Bicol International Airport in Daraga, Albay to be completed in 2020;
• P2.4-billion Eastern Visayas Regional Medical Center Modernization Project that will increase the Tacloban City hospital’s capacity to 500 beds from 325 beds currently, to be completed within 30 months of contract award; and
• P2.2-billion Modernization of Gov. Celestino Gallares Memorial Hospital Project that will increase the Tagbilaran City hospital’s capacity to 500 beds from 225 currently within 24 months.
NEDA said its Board also moved to hasten project approval by reducing maximum project economic hurdle rate to 10% from 15% due to lower cost of domestic and foreign financing; raising cost floor for projects to be approved to P5 billion from P1 billion; streamlining review procedures of the NEDA Investment Coordinating Committee (ICC), which endorses projects for Board approval, for minor project changes; and reducing NEDA Board and ICC membership via an Executive fiat Malacañang will issue.
source: Businessworld
