Foreign chambers bat for new BOT program

The Joint Foreign Chambers (JFC) said yesterday the government needs to revise its build-operate-transfer (BOT) program in order to fully develop and modernize the infrastructure facilities in the Philippines.

 “In recent years, there have been tens of billions of dollars waiting to be invested in properly prepared and properly bid and properly implemented PPP (public private partnership project) in the Philippines,” the letter of the JFC to Rep. Felix R. Alfelor Jr., chairman of the House committee on government enterprises and privatization, stated.

The JFC has thrown its support to House Bill 3763 titled “An Act Enhancing the Public and Private Partnership in Infrastructure Development in the Philippines,” HB3763 is one of four pending bills amending the BOT law.

The House bill lays down the general principles for future PPP projects in the country and in effect reduces much of the cumbersome detail in present legislation.

JFC said the PPP is necessary “for the future modernization of infrastructure in the Philippines by encouraging fuller participation of private resources.”

The chamber said they agree that each local government unit (LGU) must be responsible for proposing PPP projects because they are the ones that are expected to know their respective areas well.

Under section 5 of the bill “if the agency or LGU lacks capacity to prepare and implement all stages of the project, it may request assistance from the Project Development Facility (PDF), which will be funded from National Government funds and grants from donors of official development assistance.”   

“A PDF does not currently exist and would meet a critical weakness presently making proper project preparation for BOT projects to be bid out. This is very difficult for the government and LGUs,” the JFC said.