PPP program expands to LGUs

MANILA, Philippines – The government is aggressively campaigning for its Private-Public Partnership program as the centerpiece of its economic development strategy.

Those projects include big-ticket infrastructure projects such as two airports, extension of the Metro-Manila light rail system, a highway that connects the north and south superhighways which have been lined up for bidding by the National Economic Development Authority’s (NEDA) PPP center now housed at the NEDA building along EDSA near Timog in Quezon City.

Those in the pipeline are two airports, one in Bohol and another in Puerto Princesa, Palawan.

Interior and Local Government Secretary Jesse Robredo announced during the 19th Metro Manila Chamber of Commerce business conference in Manila Hotel that his office is issuing shortly the rules on PPP projects to be undertaken by provincial, city and municipal governments.

Under those rules, projects that will cost no more than P200 million will not need the green light from NEDA’s PPP center. Only projects that will cost more than P200 million will need the approval of the national overseer.

“If I have my way, there is no need for rules at the local government level. For as long as a project is beneficial to the investor, to the local government and to the community where it is built, a local executive must have the autonomy to implement it,” Robredo said.

It was also announced during the conference that the present administration is not encouraging unsolicited proposals for big-ticket projects. The P-Noy administration adopted this rule to leave no doubt that negotiated projects may be mired with corrupt practices.

The highway connecting the north and south expressways, however, was an unsolicited project proposed and to be implemented by the operator of the North Luzon expressway.

In projects to be undertaken by local governments, Robredo said, unsolicited projects will be welcomed.

He said that the city of Naga where he was mayor for over 15 years before he was appointed local government secretary, was a beneficiary of unsolicited PPP projects in the past.

He mentioned one instance when a private landowner donated a piece of land to the Naga city government on condition that that particular lot would be developed by the city as a central bus and jeepney terminal.

The project turned out to be a big success. It benefited the bus and jeepney operators, the commuting public and the local government that operated it.

It also benefited the donor of the lot who owned adjacent properties which were later priced and sold at premium prices when the bus terminal was already in operation.

“There is no law prohibiting local governments to undertake unsolicited privately funded PPP projects,” Robredo explained.

Responding to the presentations made by government officials on the take-off of the new administration’s PPP strategy, Francis Chua, PCCI president, said “the private sector appreciates the P-Noy government for recognizing the need for long-term partnership in pushing sustained economic growth through the PPP program.”

PPP projects come in 10 different modes ranging from joint ventures to straight donations. Of these, the Build-Operate-Transfer (BOT) projects are the most popular. –Philexport News and Features (The Philippine Star)