DOTr cancels PPP plan for 5 regional airport projects

By on May 23, 2017


MANILA— The Department of Transportation (DOTr) has decided to terminate earlier plans to develop five regional airports through the Public Private Partnership (PPP) scheme, the PPP Center said in a statement Tuesday.

Instead, the government through the Department of Transportation (DOTr) and the Civil Aviation Authority of the Philippines (CAAP) decided that these projects would be implemented through other modes.

The PPP statement said the Duterte administration prefers a hybrid mode of implementation for PPP projects wherein the government would build or develop infrastructure projects and bid out their operations and maintenance to the private sector. This way, the government could expedite the implementation of vital infrastructure projects in the country.

The DOTr will be implementing the development, operations, and maintenance of the New Bohol (Panglao), Davao, Iloilo, Laguindigan, and Bohol airports.

These five airport projects, estimated to cost around PHP108.9 billion, were originally approved under a bundled structure by the Investment Coordination Committee (ICC) and the National Economic Development Authority during the Aquino administration.

The present administration decided to unbundle the project and bid out the airports individually to fast track the PPP selection and awarding.

Ayala Corporation, Metro Pacific Investments Corporation, San Miguel Corporation, Megawide and Filinvest expressed interest to bid for the PPP project.

“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 CAAP’s authority and their decision to terminate the projects,” the agency said in its statement.

The PPP Center also expressed its commitment and support to the infrastructure and development projects of the government as demonstrated by the success of various PPP projects such as the Mactan-Cebu International Airport (MCIA) Passenger Terminal Building, NAIA Expressway, PPP for School Infrastructure Projects (PSIP), and the Automated Fare Collection System (AFCS) or Beep Card, among others.

“It is clear that PPP remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach (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 said.

The statement further said the PPP Center will also 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, and deliver much-needed public services.