Duterte to pursue PPP projects

DAVAO CITY, Philippines – The administration of incoming president Rodrigo Duterte is set to vigorously pursue public-private partnerships (PPP) for infrastructure projects which the government cannot finance.

Incoming finance secretary Carlos Dominguez III said Duterte would accelerate infrastructure spending with a target level of around five percent of Gross Domestic Product, so the country can keep pace with the rest of Southeast Asia.

“A focus on narrowing the infrastructure gap will also help us to keep sight of some of the poorest among our people who work in the construction sector,” Dominguez explained.

He also noted that the rules of the PPP mechanism would be reviewed and improved.

According to the government’s PPP Center, there are 12 awarded projects in the PPP pipeline. There are 14 projects in different stages of procurement, two projects for rollout, seven projects for government approval and two projects are undergoing studies.

Among the PPP Center partners are the Asian Development Bank, ASEAN, Australian Agency for International Development, Canadian International Development Agency and the Japan International Cooperation Agency.

The private sector partners are the American Chamber of Commerce-Philippines, the Australia Philippines Business Council, European Chamber of Commerce of the Philippines, Makati Business Club, Management Association of the Philippines and the Philippine Constructors Association Inc.

Notice of award was given to the private proponents of at least 12 PPP projects.

These include the Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway) Project; PPP for School Infrastructure Project phase I; NAIA Expressway Project phase II, PPP for School Infrastructure Project phase II, Modernization of Philippine Orthopedic Center; Automatic Fare Collection System; Mactan-Cebu International Airport Passenger Terminal Building; LRT Line 1 Cavite Extension and Operation and Maintenance; Southwest Integrated Transport System Project; Cavite-Laguna Expressway; South Integrated Transport System Project and the Bulacan Bulk Water Supply Project.

There are 15 more PPP projects under various stages of bidding with an indicative cost of P549.4 billion as of this year, but measured against this, the Aquino government has only awarded about 60 percent of the total so far.