5 good news and 5 not-so-good news about PPP | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features.

MANILA, Philippines – Almost six (6) months since the launch of the Public-Private Partnership (PPP) program of the Aquino Administration, there are still many issues on PPP which have been left unanswered.

5 Good News. Since the launch of the PPP last November 18, 2010:

1. Five (5) PPP projects have been prioritized and will be subjected to bidding within the year. These are the P6.3 billion Metro Rail Transit Line 3, the P7.7 billion Light Railway Transit Line 1, the P1.6 billion Daang Hari-South Luzon Expressway link road, the P10.6 billion Ninoy Aquino International Airport Expressway Phase 2, and the P21 billion North Luzon Expressway-South Luzon Expressway connector road.  The selection process for the service contractor for the first two (2) projects – MRT3 and LRT1 has already commenced.

2. A lot of countries have signified support for the Philippine PPP initiative. These are China, U.S.A., United Kingdom, Singapore, Japan, India, Korea, Qatar, UAE, Doha, and Abu Dhabi. Foreign governments and investors have manifested their desire to invest in the Philippines. International donor and financing agencies have likewise extended their technical and financial support for the flagship program of President Aquino.

3. The local private sector is also abuzz over PPPs. About 44 investors sent their expressions of interest to the Department of Public Works and Highways for the MRT3 and LRT1 projects. A number of unsolicited proposals are in the pipeline and the proponents are awaiting directions from the concerned government agencies regarding their viability and suitability for PPP. There are proposals for development and financing of airports, seaports, roads, energy, water supply and distribution, land development, health services, among others.

4. PPP initiatives from the public sector abound both at the national and local levels. The Philippines has been named as the center for PPP excellence for health. More than 100 PPP projects were identified as priorities by the various departments of government. At the local government level, the Province of Camarines Sur adopted its own guidelines for provincial joint ventures and leases, and provided for incentives and tax exemption privileges to PPP investors.

5. Aside from project financing that will be provided by banks and financial institutions, public financing schemes are about to be put in place to fund the PPP projects. Budgets for some PPPs are already in the General Appropriations Act, including a P300 million revolving fund for the PPP Center (formerly BOT Center). An additional single borrower’s limit has been set by the Bangko Sentral for PPP infrastructure projects. Bond flotation, investment by government insurance systems and financial institutions, creation of a Philippine Infrastructure Financing Corporation, and the establishment of a Philippine Infrastructure Development Fund are being considered.

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