New admin to remove clogs impeding implementation of PPPs

THE DUTERTE administration would be removing blockades hampering the smooth implementation of public-private partnership (PPP) projects in a bid to ramp up infrastructure development, the country’s incoming chief economist said.

To fast-track the PPP initiative, incoming Socioeconomic Planning Secretary Ernesto M. Pernia told the Inquirer the incoming administration would “cut out needless rebiddings, postponements, TROs (temporary restraining orders) and other impediments.”

The Duterte government would also “get a more dynamic and competent head and staff” for the PPP Center, said Pernia, who is also the incoming Director General of state planning agency National Economic and Development Authority (Neda).

Last week, a statement from the transition team of incoming Finance Secretary Carlos G. Dominguez said part of the proposed 10-point socioeconomic agenda of President-elect Rodrigo R. Duterte included “accelerating annual infrastructure spending to account for 5 percent of the gross domestic product (GDP), with public-private partnerships playing a key role.”

Pernia and Dominguez will be among the members of the incoming economic team who will flesh out the 10-point agenda before businessmen in a two-day consultative meeting in Davao City starting today, Monday.

When the Aquino administration launched the initiative in 2010, it committed to roll out about 10 PPP projects a year. Based on data from the PPP website, however, only 12 projects have been awarded to private sector proponents.

The projects earlier issued notices of award were the following: Daang Hari-South Luzon Expressway (SLEx) link road or Muntinlupa-Cavite Expressway; PPP for school infrastructure (phases 1 and 2); Naia Expressway (phase 2); Philippine Orthopedic Center modernization; Automatic Fare Collection System; Mactan-Cebu International Airport passenger terminal building; Light Rail Transit (LRT) Line 1 Cavite extension as well as operation and maintenance; Southwest Integrated Transport System; Cavite-Laguna Expressway; South Integrated Transport System; and Bulacan bulk water supply project.

Early this month, the Neda’s investment coordination committee (ICC) approved the changes earlier recommended by the Department of Transportation and Communications (DOTC) for the proposed P170.7-billion, 653-kilometer south line of the North-South Railway Project, which would run from Manila to Legazpi City, Albay.

The incoming Duterte administration has the option to withdraw the changes approved by the Neda-ICC.

The Neda-ICC had approved the DOTC’s proposal to split the project in two, such that the planned commuter railway and the long-haul railway would be bid out to private sector proponents separately.