P154-B mega projects unveiled in 1st PPP salvo

protesters yesterday tried but failed to break inside the Marriott Hotel in Pasay City where President Aquino and his team of economic managers were launching his administration’s pet project that aims to attract the biggest local investors to infuse fund into major government projects, the first 10 of which are already worth a total of P154 billion.

President Aquino unveiled vital infrastructure to be opened for private investment, both local and foreign, under the so-called public-private partnership (PPP) program during the “Infrastructure Philippines 2010: Investing and Financing in Public-Private Partnership Projects” conference at a Pasay City hotel.

Transportation and Communications Secretary Jose de Jesus said 10 transportation-related priority projects will be placed on the auction block next year.

“The projects presented today have completed feasibility studies, have completed right of way requirements, and have been budgeted to the required government counterpart for award and implementation by the fourth quarter of 2011”, De Jesus said.

The 10 PPP infrastructure projects are:

* The Cavite-Laguna Expressway project (Cavite side) costing $ 262 million that will provide vital access between various economic zones in the Cavite Province and the international airport, the Ports of Manila and Batangas and will contribute to the economic development and decongestion of traffic along Aguinaldo Highway in Cavite to be implemented from May 2012 to Dec. 2015.

* The NAIA Expressway (Phase II) that will link the Skyway and the Manila-Cavite Coastal Expressway and provide access to the Ninoy Aquino International Airport (NAIA) Terminals 1, 2, and 3 as well as the Cavite Economic Zone to cost $235.33 million and to be implemented from Nov. 2011 to Sept. 2015.

* The light rail transit (LRT) Line 2 East Extension project that involves the expansion, operation and maintenance (O&M) of LRT Line 2. The expansion covers the construction of a four-kilometer eastern extension of LRT Line 2 from Santolan in Pasig City to Masinag Junction, Antipolo, Rizal with additional two passenger stations to be located at Sta. Lucia Mall and Masinag.

* The Mass Rail Transit (MRT)/LRT Expansion Program and the privatization of LRT 1 operation and maintenance that aims to integrate LRT Line 1’s operation and maintenance to a private sector service provider during the interim period of three to four years. After the O&M period, the LRT 1 South Extension Project contractor is expected to assume overall responsibility for the integrated LRT Line 1 and MRT Line 3 systems. The project would cost $171.11 million with implementation schedule of 2011-2014.

* MRT/LRT Expansion Program and the privatization of MRT 3 operation and maintenance that will integrate MRT Line 3 to a private sector service provider during the interim period of three to four years. After this period, the LRT Line 1 South Extension Project contractor is expected to assume overall responsibility for the integrated LRT Line 1 and MRT Line 3 systems.

* The MRT/LRT Expansion Program and LRT 1 South Extension project which involves the extension of the existing 15-km LRT Line 1 system southward to Bacoor, Cavite with an additional 11.7 kilometers which includes eight passenger stations with provision for two additional future passenger stations, a satellite depot for light maintenance to be located at the southern end of the proposed line. Inter-modal facilities installed at high-demand stations, including the provision of additional rolling stocks to meet the current demand and additional load requirements once the MRT Line 3 and LRT Line 1 are integrated to cost a total of $1.5 billion.

* New Bohol Airport Development which will involve the construction of a new airport of international standards with 2,500m by 45m runway to replace the existing Tagbilaran airport. Implementation scheduled from 2012 to 2014 with a total cost of $168.89 million.

* The Puerto Princesa Airport Development project that will rehabilitate and improve the existing Puerto Princesa Airport to meet the standards of the International Aviation Organization (ICAO) through the construction of new landside facilities in the north western side of the existing runway such as passenger terminal building, control tower, administration and operation building, cargo terminal building, rescue and firefighting building and other support facilities. Also to be constructed are new apron and connecting taxiways, upgrading of existing 2.6-km runway and its strip and the provision of new navigational and traffic control equipment. Implementation of the project will be from 2012 to 2014 with a cost of $168.89 million.

* New Legaspi (Daraga) Airport Development to cost $ 1.11 million to be built from 2012 to 2014.

* The Privatization of Laguindingan Airport Operation and Maintenance project involving the privatization of its operations and maintenance in Misamis Oriental to reduce government expenditures and increase current and future service levels of the airport. The concession covers the newly-constructed airport on a 393-hectare property complete with facilities of international standards. The airport can accommodate 1.2 million passengers per year based on it master plan. This project cost $33.33 million with implementing schedule from year 2011 to 2013.

These projects are only part of a long list of PPP projects to be opened for bidding and implementation in the years to come, according to De Jesus.

The 10 projects will be awarded under so-called “build-operate-transfer” terms, where the investor reaps the profits of the projects for a certain amount of time before handing ownership to the government.

Protesters who belonged from the left-wing partylist group Bagong Alyansang Makabayan (Bayan) staged the lightning rally saying Aquino’s PPP could bring more debts than revenues for the country, an opinion that was shared by an independent local think tank, Ibon Foundation, Inc.

Bayan, in a press statement, expressed its concerns over Aquino’s willingness “to protect investors from certain regulatory risk events such as court orders or decisions by regulatory agencies which prevent investors from adjusting tariffs to contractually agreed levels.”

Aquino, in a speech, promised that if private investors are impeded from collecting contractually agreed fees by regulators, courts, or the legislature, then his government “will use its own resources to ensure that they are kept whole.” -Aytch de la Cruz and Ayen Infante, Daily Tribune, AFP