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DOTC turns to legal eagles for help in PPP rollout

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THE DEPARTMENT of Transportation and Communications (DOTC) is enlisting the help of the country’s top private lawyers to help speed up the rollout of big-ticket infrastructure projects under the public-private partnership (PPP) scheme.

Transportation Secretary Joseph Emilio “Jun” Abaya said the department already talked to various law firms that could be tapped to hasten the government’s procurement process.

“We plan on outsourcing work to the private sector,” said Abaya, who resigned as Cavite representative last October to fill the DOTC position. “The problem with these projects is that the process is linear. We can’t do different steps simultaneously.”

Abaya added that, with the PPP strategic fund at its disposal, the government agency has enough “flexibility” to carry out the program.

Private firms will be tapped for project feasibility studies, which is the first step in most projects, he said in an interview.

The goal is to have all feasibility studies, which measure the social and financial impacts of specific projects, completed as early as next year, he explained.

“Since the feasibility study is the first step for all projects, then why not do it all now?” Abaya said, adding that the DOTC does not have enough personnel to carry out the studies on time.

Abaya admitted that sudden changes in the government’s policy for PPPs, particularly the introduction of the “hybrid PPP” structure introduced by his predecessor current Interior and Local Government Secretary Mar Roxas, resulted in delays in the rollout of long-awaited projects.

The hybrid PPP scheme involves bankrolling projects by tapping overseas development assistance (ODA) funds from friendly foreign lenders offering low interest rates. The inclusion of ODA funding meant that the government had to reconfigure many projects.

One priority project of the DOTC is the Light Rail Transit (LRT) line 1 extension, adding 12 kilometers of new track to the three-decade-old train line to reach Bacoor, Cavite.

Officials are now preparing to bid out the project.

Abaya said the DOTC would accept formal bids for the project in January, and award the P30-billion contract by April.


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Tags: Business , DoTC , infrastructure projects , PPP , public-private partnership

  • http://www.facebook.com/raul.pasmado Raul Pasmado

    totoo na ba yang extension?

  • http://pulse.yahoo.com/_AYITA5V33GYZSLC3G37UCVNTKA Ben

    Good! For every year that PPP is not maximally used and implemented is a lost productivity and economic gain for the country. This is a top priority of the government for the country, second only to the much anticipated investment upgrade….the two combined will definitely put our economy into an overdrive to industrialization…but why wait for the investment upgrade…do it now while it is still hot.. thecountry is calling you my government to do your job with efficiency and on time before Pnoy`s term is over. We don`t know if the next president will be the same and will continue what is being done today, or reverse course and put us again into oblivion….the country has a chronic history of boom and bust episodes…never again that`s why the pressure is in the hands of this government to do more in just a short time span…..

  • zeroko

    Not so fast. Our Chinese Dominated Government will again tie the private contract to government sovereign guarantee in which private participant are given favorable interest on the project even if they later on back out. This is what happen to the present MRT/LRT project in which later on the private party withdraw their investment and the funding and operation was taken over by the government. Unfortunately for Juan de la Cruz, even if the private withdraw their investment, they still get the “guaranteed return of investment (Zero investment). This is why in spite of massive patronage by the riding public, still the company is loosing because majority of it’s profit is being siphoned by the original investors even if they withdraw their funds.
    This is what we get for electing Filipino-Chinese in our government. Sovereign guarantee commits the Filipino people to pay what these Chinese has borrowed but failed to deliver what was expected of them Same thing also happened during FVR’s term. Private electric provider were given a 100% profit even if they deliver 5% electricity. He he he! FVR deserves to face a firing squad and executed. This is the most stupid contract which is grossly disadvantageous to the consuming public. What if the private electric provider fails to deliver the electricity because of overhauling the machines or the electric plant was burnt? Does it mean that we still pay 100% as profit for non-existing company? We have big time crooks in the first order, our Presidents. 

    • latino_boom

      CRAB MENTALITY

      • latino_boom

        WHY DON’T YOU RUN FOR THE OFFICE LET’S SEE IF YOU CAN WIN

  • http://pulse.yahoo.com/_47AS3MXEHKUW6IEMD5W3CCDWKQ gary

    We applaud the endeavors of Sec Abaya as it entails speeding up the process. 2.5 Years out of 6, its about time at least one PPP project to be in the construction stage. Get it going. We need more Engineers.



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