PPP delays our fault–Abaya

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Transportation and Communications Secretary Joseph Abaya: Our fault. INQUIRER FILE PHOTO

MANILA, Philippines—Despite delays, the administration is bent on pursuing public-private partnership (PPP) projects and is doing its best to accommodate the demands of the private sector, according to Transportation and Communications Secretary Joseph Abaya.

Abaya, speaking at the House of Representatives hearing on the Department of Transportation and Communications (DOTC) budget, also said that no company had expressed a desire to drop its bid for PPP projects because of the slow progress of negotiations.

He admitted that the DOTC was responsible for the delays in PPP projects, but only because the agency was being careful before plunging into ventures that had not been properly studied.

“We’re not abandoning the program. We’re tweaking it a little to accommodate reasonable requests, but we will pursue PPP,” Abaya said.

He said government officials were also trying to accommodate the requests of the private firms, but not without taking the public interest into consideration.

Abaya said, however, the government could not do anything if some business firms chose to walk away.

Pursuing PPP projects was a “very complicated process,” Abaya said.

“It is really a sophisticated negotiation process but we’re learning from it,” he said, adding that the projects could prosper in the Philippines.

The PPP business ventures are funded through partnerships between government agencies and private sector companies for the purpose of putting up projects that would serve the public interest.

Abaya noted that in Indonesia, PPP projects never took off.

“We do realize the PPP has a spot under the sun, especially for countries lacking resources,” he said.

Recently, another project was delayed following the postponement of the bidding for a deal to operate a one-card system for all three elevated railway lines in Metro Manila.

Before that, the bidding for the Light Rail Transit-1 Cavite extension project also failed after only one group submitted a proposal, and was declared noncompliant. Three other bidders withdrew their proposals.

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  • Zim

    Do you expect the private companies to invest money in a project that wont give them profit or even just get their investment back? Ano yun? Charity?

  • Zim

    Is it because PPP in Indonesia never took off that made ours better? C’mon, you can do better than that people!

  • joboni96

    honest but
    favoring big business dayuhan at intsik switik

    why not leverage the $ billions remittances of ofw’s
    to build mega nation building projects for our country

    using the many idle bureaucrats
    in idle government corporations

    1. higher interest income for ofw’s
    2. lower interest cost for government
    3. higher income for government bureaucrats
    4. rollback dayuhan and intsik switik control of pilipino economy
    5. more government services to pilipinos

    nagpapaniwala kayo sa privatization
    sa nakakulong na zte aroyo

  • disqus_EWrSdjV1nv

    PPP projects are successful in commonwealth countries. UK, India, Malaysia, Australia, Canada…. we are not in them so don’t force the method. its a wrong solution to our problem.

  • ManilaMan

    Ito ba ang brightest spot in Asia? Where GDP growth in the last quarter was the highest and even beat China’s?

    Buti pa nung Asian financial crisis under less than 2 years of Erap’s admin nakapaginaugurate ng mrt-3. Yung global recession under arroyo may lrt-2, sctex, skyway.

    Alanya naman tong gobyernong ito, kahit man lang yung common station sa north edsa na kaisa-isa hindi pa magawa. What a waste!

  • neilabarca

    HINDI nga NAG-CLICK ang PPP sa Indonesia, sapagkat, sa tingin ng mga Foreign PRIVATE Co. or Investor ., mahirap ka-DEAL ang mga Indonesia kung ikukumpara sa Pilipinas. Alam ng gubyernong Indonesia ang pangloloko at panggugulang ng mga dayuhan at malalaking kumpanyang hangad lang ang magkamal ng malaking tubo….

    Ang alam ko, “NATIONALIZED ang kanilang mga strategic industrry lalo na ang OIL Industry” hindi nila ipinagkakatiwala sa mga dayuhan..

    • Zim

      Are you sure interes ng taong bayan ang dahilan kung bakit delayed and PPP? O baka ang interes ng mga nakaupo? I’m sorry kung may doubt ako, but it is hard not to.

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