DOTC confident PPP infra projs to push through amid delays

MANILA, Philippines - The Department of Transportation and Communications (DOTC) is confident major infrastructure projects under the public private partnership (PPP) scheme of the Aquino administration would take off amid the stumbling blocks causing several delays.

DOTC Secretary Joseph Emilio Abaya told participants during yesterday’s economic briefing with a theme of “Investment Grade Philippines: Seizing Opportunities to Achieve Inclusive Growth” that the bidding of three infrastructure projects would push through amid delays.

Abaya said the submission of bids for the government’s largest infrastructure project involving the P60-billion light rail transit line 1 (LRT1) extension to Cavite is scheduled in the first quarter of next year after a failed bidding last August.

 â€œIt stumbled a little but we expect to bid it out in the first quarter of next year, January or February,” Abaya said.

The joint Special Bids and Awards Committee (SBAC) of the DOTC and the Light Rail Transit Authority (LRTA) earlier issued a resolution declaring the Aug. 15 bidding of the LRT1 Cavite extension project a failure.

Abaya said the bidding for the P17.5- billion Mactan Cebu International Airport terminal expansion project and the P1.72-billion automated fare collection system (AFCS) project is expected to push through next month upon the completion of their respective concession agreements.

He pointed out that the submission of bids is scheduled in October after being delayed by 30 days upon the changes in the concession agreements based on one-on-one meetings with the prequalified bidders.

“The bidding for the Mactan Cebu airport project and the AFCS project are scheduled next month,” he added.

According to him, there is a need to strike a balance between the interest of the bidders and that of the government.

Cosette Canilao, executive director of PPP center, said the government has resolved the concerns on bidders particularly on the viability of the major infrastructure projects as well as the commercial concerns of the bidders.

Canilao pointed out that the government has undertaken initial reforms to make sure that the projects would be commercially viable for the bidders as well as bankable for the lenders.

For one, the DOTC has asked Malacañang to approve a plan to provide cash support amounting to about P2 billion to the winning proponent of the P60-billion LRT1 Cavite extension project as a form of subsidy for the real property taxes.