Gov’t rolls out first LGU-based PPP project

MANILA, Philippines - The Aquino administration has rolled out the country’s first Public Private Partnership (PPP) project initiated by a local government unit (LGU) via the P400 million Tanauan City public market redevelopment project.

The Tanauan City government, through Pre-qualification Bids and Awards Committee chairman Herminigildo Trinidad Jr., said foreign and local companies may bid for the PPP project under the Build-Operate-Transfer (BOT) Law.

Trinidad said the winning bidder would finance the construction of a four-story commercial building with a floor area of 26,000 square meters, comprising of ground and second floor for commercial spaces as well as the third and fourth floor for parking and terminal.

He added that the project also covers the construction of a wet and dry market building with a minimum floor area of 10,000 square meters.

Interested companies have until April 13 to submit their letters of intent and prequalification documents.

The LGU would adopt a two-stage bidding process, including the pre-qualification and shortlisting process, as well as the actual bid proposal submission and opening.

It would conduct a pre-bid conference on April 27, paving the way for the submission of bids on June 4.

The project was given the green light by the National Economic and Development Authority – Investment Coordination Committee (NEDA-ICC) last January.

PPP Center executive director Cosette Canilao said the first LGU-PPP project would entice other LGUs in the country to pursue more infrastructure projects in partnership with the private sector.

 “This is the first LGU-PPP project approved by the ICC and we look forward to more local PPP initiatives facilitated by the Center’s PPP capacity building strategy for local governments,” Canilao said.

She pointed out that the current pipeline of projects of the PPP program has several LGU-initiated projects.

The PPP Center launched an LGU-PPP strategy in 2013 following its capacity building program that included the development and dissemination of an LGU PPP Manual.

Under the BOT Law and its implementing rules and regulations, LGUs could implement PPPs for local infrastructure and development projects.

Based on cost, some locally initiated projects can be approved at the local development council levels and need not go up to the ICC.

Several LGUs awarded contracts to private partners for local development projects using the BOT and its variants during the previous administrations.