Investors unfazed by PPP setbacks

The government is downplaying recent setbacks to its Public Private Partnership program, stating that how it handles issues on current projects is key in retaining long-term investors’ interest, PPP Center executive director Cosette Canilao said Thursday.

The PPP Center, the main agency overseeing the Aquino administration’s cornerstone infrastructure program, held a media briefing to discuss issues surrounding big-ticket projects like the P17.5-billion Mactan Cebu International Airport deal, which is running a month behind schedule in terms of awarding.

Despite the setbacks, Canilao claimed that investors were still keen on the PPP program.

For example, the PPP Center on Thursday announced that seven groups had acquired bid documents for a P2.5-billion transport hub under an integrated transport system project to be auctioned off in May. These are San Miguel Corp., Metro Pacific Tollways Corp., Ayala Land Inc., D.M. Wenceslao and Associates Inc., Vicente T. Lao Construction, Egis Projects Philippines and Robinsons Land Corp.

The investors “are closely monitoring developments for all PPP projects, and foreign investors say they want the process and system tested,” Canilao said. “If we come out okay, and make the right decision, they would know there is a proper venue for resolving these issues. That is what is more important to them.

Another big-ticket deal being closely watched is the Mactan-Cebu International Airport deal, which stumbled in the post-qualification process or after the financial bids have been opened.

This is due to a conflict-of-interest issue raised by the Filinvest-led consortium against frontrunner Megawide Construction Corp. and India’s GMR Megawide.