PPP Center to support agencies, despite project termination

Despite the decision of the Department of Transportation (DOTr) to terminate the public-private partnership process for the Regional Airport Projects, the PPP Center remains ready and committed to support government agencies in their infrastructure and development projects. 

The PPPC in a press statement said the critical foundations of the PPP Program have been laid down, and the institutions, both in the public and private sectors, are ready to deliver. The effectiveness of the PPP program is shown by the awarded PPP projects that are now benefitting countless Filipinos – the Mactan Cebu International Airport (MCIA) Passenger Terminal Building, Naia Expressway, PPP for School Infrastructure Project (PSIP), and the Automated Fare Collection System (AFCS) or Beep Card, to name a few.

It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach (i.e. design-build-operate-maintain) in order to save on procurement timing, reduce interface risks, and avail of private sector’s technology and efficiency, the statement added.

It also said, the PPP Center, as the main driver of the PPP program, continues to collaborate with government agencies and the private sector to fulfill the country’s infrastructure requirements, significantly contribute to the government’s “Build- Build-Build” program, and deliver much-needed public services.

The government has decided to pursue the expansion and augmentation of the Regional Airport PPP Projects (Development, Operations and Maintenance of New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod Airports using the Official Development Assistance or the General Appropriation Act funding.

Payments for the invitation documents to both previously pre-qualified (for bundled projects) and new (unbundled projects) will be refunded to the bidders at the soonest possible time, according to the DOTr.

The Regional Airport PPP Projects were originally approved under a bundled PPP structure by the Investment Coordination Committee (ICC) and the Neda Board. With the approval, a transparent and credible PPP procurement process commenced following the Build-Operate-Transfer (BOT) Law and its implementing rules and regulations. This generated strong interest from the private sector, as evidenced by the active participation of highly-qualified local and international players.

In November 2016, the Neda Board approved the unbundling of the five airport projects. This meant an adjustment in the procurement processes’ milestones such as the pre-qualification and bid submission dates targeted in June and December 2017, respectively.

While the PPP Center believes in the credibility of these airport projects structured as PPP, and gratefully acknowledges the solid interest of the private sector, we respect DOTr’s and Civil Aviation Authority of the Philippines’ authority and their decision to terminate the projects.