Gov’t OKs key revisions to big PPP projects

President Aquino has approved seven public-private partnership (PPP) deals worth about P154 billion in a meeting Thursday in an effort to get his flagship infrastructure program, which has been suffering delays, back on track.

The approvals included key term revisions for the P17.5-billion Mactan-Cebu International Airport and the P60-billion Light Rail Transit Line 1 extension, allowing auctions for both projects to proceed next week and early next year, respectively, PPP Center executive director Cosette Canilao said in an interview on Thursday.

Also approved was the MRT 7 project, which is now to be undertaken by the San Miguel group. This 22.8-kilometer project will be linked to the MRT 3 through the Quezon Avenue station and run up to San Jose del Monte in Bulacan. The project is estimated to cost P62.7 billion.

The four others were the modernization deal for the Philippine Orthopedic Center, Bulacan bulk water supply project, an integrated transport system project and certain terms of the Cavite Laguna Expressway, she said.

The approvals were made as the board of the National Economic and Development Authority, which is chaired by President Aquino, convened Thursday.

Canilao noted that Mactan Cebu’s auction, delayed from Aug. 28 and then on Nov. 15, a week after Typhoon Yolanda struck, was being finalized for next Thursday.

Among the revisions disclosed by the DOTC were the lengthening of the concession period from 20 years to 25 years and the transfer of “the liability for the payment of certain real property taxes to the government.”

Also covered was the “transfer of operations and maintenance of the aprons from grantors to the concessionaire,” including revenue rights and allowing flexibility on implementation of augmentation capacity.

The DOTC also increased the duration of the period for prohibiting the establishment of competing airports.