DAVAO CITY, Philippines – The Public-Private Partnership Center announced the termination of the procurement for PPP projects for the development, operations and maintenance of five airports in the country.
In a press statement on Tuesday, May 23, the PPPC said procurement for development projects for the airports in Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod will be terminated.
“The Government, through the implementing agencies, the Department of Transportation (DOTr) and Civil Aviation Authority of the Philippines (CAAP), decided that the projects would be implemented through other modes,” the PPPC said.
The center added that the developments of the said airports 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,” the center pointed out.
The group added that the PPP scheme has 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,” the center said.
Despite the termination, the PPPC said it respected the authority and the decision of the DOTr and CAAP and believed in the credibility of said airport projects structured as PPP.
“Notwithstanding this development, the PPP Center remains ready and committed to support government agencies in their infrastructure and development projects,” PPPC said, adding that 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 center also cited the effectiveness of completed PPP projects that are now benefitting countless Filipinos, to include 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.
PPP is a contractual agreement between the government and a private firm that involve financing, designing, implementing and operating infrastructure facilities and services.
PPP as a scheme is seen to reduce risks between government and a private firm by minimizing cost while realizing project developmental objectives.
“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 center said.
The center added that it will continue 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”. (davaotoday.com)
