Gov’t earmarks P19.6B for PPP this year
Malacanang has earmarked P19.6 billion in counterpart funding to help rev up its public-private partnership (PPP) infrastructure initiative this year, an amount higher by 57 percent than the P12.5 billion allotted last year.
Budget Secretary Florencio B. Abad said in a statement that with the increased funding, the government hopes to gain more traction for the PPP scheme this year and boost its ability to respond to high-demand public services.
“We also expect to see concrete results for our private sector partnerships earlier this year,” Abad said. “The multiplier effect of successful PPP projects will certainly be felt in the economy.”
Of the total budget for PPP this year, P8.6 billion will go to the Department of Transportation and Communications (DOTC), of which P6.6 billion will be used for six projects, including the Panglao Airport in Bohol, the Puerto Princesa Airport in Palawan and the New Legazpi Airport in Albay.
Also covered are the LRT Line 1 South extension and privatization, the MRT/LRT common ticketing project and the DOTC’s project development fund.
The DOTC will use the remaining P2 billion for its strategic support fund for PPP projects.
Another P4 billion will go to the Department of Education to support efforts with the private sector to build classrooms.
The Department of Health will get P3 billion for the construction and maintenance of health centers and hospitals.
Another P3 billion will go to the Department of Public Works and Highways for right-of-way costs, feasibility studies and independent consultations for projects like the Tarlac-Pangasinan-La Union Toll Expressway, Daang-Hari-South Luzon Expressway Link Road, Ninoy Aquino International Airport Expressway, the Cavite side of the Cavite-Laguna East-West National Road project and the Manila North Expressway.
Lastly, P1 billion will go to the Department of Agriculture to help its Corn Bulk Handling and Trans-Shipment System project; the establishment of rice centrals, processing and service centers, and the establishment of a cold chain system for strategic areas in the country.
The Aquino administration is banking on the PPP program to provide momentum to the economy, which is expected to be affected by the weak markets in the United States and Europe.
