Let’s join in the bidding

The first of many PPPs gets to be rolled out this week. Let’s all join in support of this program either as bidder, watcher or adviser. The last two may be just as important as the first one.

From BusinessWorld Philippines


4 January 2012

More PPP deals lined up

THE GOVERNMENT is aiming to roll out at least eight of 16 public-private partnership (PPP) projects this year as it seeks to recover ground lost due to delays in the centerpiece infrastructure scheme.

PPP Center Executive Director Cosette V. Canilao yesterday announced that an invitation to bid for a P10.4-billion classroom contract would be published this Saturday. It will be the first PPP to move this year after the program was finally launched last December with the award of the Daang Hari-South Luzon Expressway (SLEx) deal.


The latest project, to be implemented by the Education department, involves the construction of 9,623 classrooms for 2,300 elementary and secondary schools in Regions I (Ilocos), III (Central Luzon) and IV-A (Calabarzon).


The government, said Ms. Canilao, is also hoping to jump-start the bidding of the Health department’s P900-million Vaccine Self-Sufficiency Program in the first quarter, to be followed by six more projects in the second half of 2012.


These include the P5-billion modernization of the Philippine Orthopedic Center and four projects under the Transportation department: the P1.8-billion Common Fare Collection System; P7.8-billion Laguindingan Airport Operations and Maintenance contract; P8-billion New Bohol Airport; and the P10.15-billion Mactan Terminal 2 Airport Development project.


Rounding out the list of eight, said Ms. Canilao, is a project that will “most likely come from those that were approved for PDMF (Project Development and Monitoring Facility), depending on the results of the feasibility studies, approval of the NEDA (National Economic and Development Authority) and [the] market environment at that time.”


Included in the PDMF list are the P25-billion Metropolitan Waterworks and Sewerage System (MWSS) New Water Supply deal, P1.5 billion worth of operation and maintenance contracts for the Agus hydroelectric power plant’s turbines four and five, and the Macau Multi-hydro Power Plant; and a P5.3-billion Cold Chain Systems project that will cover strategic areas.


Other PPP projects that are also being targeted for rollout this year, meanwhile, are the following: the P4.2-billion Puerto Princesa Airport Development Project; P20.28-billion North Luzon Expressway-South Luzon Expressway Connector project; P19.69-billion Cavite-Laguna Expressway; P11.3-billion LRT-2 East Extension/Operation and Maintenance contract; P1.25-billion Corn Bulk Handling and Transshipment System project; and the P20-billion Balara Water Hub.


Ms. Canilao said the government was confident that more PPP projects would take off this year, in contrast to last year’s slower-than-expected rollout when only one project — the P1.96-billion Daang Hari-SLEx deal — was awarded to Ayala Corp. in December.


“Most of our work last year was focused on housekeeping… We worked to establish a responsive environment for the PPP program by reviewing the fundamental rules, guidelines and policies that govern it,” she claimed.


“[W]e look forward to 2012 with confidence and assurance that the PPP program of government will continue to successfully roll out viable PPP projects.”


Sought for comment, University of the Philippines Benjamin E. Diokno said the PPP roll-out “will not make a big contribution to growth this year” unless the projects actually take off and people and resources are mobilized.


Ms. Canilao said actual construction could start six to eight months after a project is awarded. In the case of the schoolbuilding program — even with a January rollout — construction will most likely take place in late December or early January 2013, she said.


Mr. Diokno, in a text message, said: “Invitation to bid is at the very early stage of the bidding process. [The process goes through] invitation, submission, opening of bids, award and notice to proceed, mobilization… [but] at least it’s moving, though rather slowly.” — N. M. Gonzales



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