Transport chief pushes review of PPP rules

THE NEW transportation secretary is backing a revamp of the rules for public-private partnership (PPP) projects in a bid to speed up the implementation process.

The PPP program was a cornerstone initiative of the Aquino administration. Its aim was to tap private sector support in moving badly needed infrastructure projects forward.

Transportation Secretary Arthur Tugade nevertheless noted that the government needed to do more to streamline the process. The Department of Transportation accounts for the biggest share of PPP deals.

“The general plan is that rules on the PPP will have to be revisited,” Tugade told reporters in a briefing on Friday.

He said this would also cover qualification requirements, which needed to be simplified. He noted that this would make the process faster and also promote an environment of “inclusion” for interested bidders.

“What normally takes two to three years before, hopefully we can do that in a much shorter time,” Tugade said.

The PPP program underwent birthing pains early on, but eventually played an important role in getting 12 projects worth about P200 billion, including big-ticket railway and airport deals, awarded to the private sector following reforms.

The PPP Center is led by its executive director Andre Palacios. He replaced its longtime chief Cosette Canilao, who stepped down last March 8. President Duterte has not named any replacement for Palacios.

Palacios said in a text message over the weekend that he supported plans to revise the PPP rules.

Transportation Secretary Arthur Tugade PHOTO BY E.I. REYMOND T. OREJAS/INQUIRER CENTRAL LUZON

“For future projects, we can speed up bidding and implementation by improving the rules so contractual obligations are clearly and properly apportioned between the [transportation department] and its attached agencies,” Palacios said.

He added that the department could soon act on PPP deals currently under procurement for “immediate results without need of revising any rules.”

Of the 12 awarded projects under the Aquino administration, only 11 would be moving forward. The modernization of the Philippine Orthopedic Center would no longer push through after the winning bidder terminated the deal following long delays on the government’s side.

The awarded PPP deals were the MCX or Muntinlupa Cavite Expressway (formerly DaangHari-SLEx Link Road), PPP for school infrastructure project (Phase 1), Naia Expressway project, PPP for school infrastructure project (Phase II), the automatic fare collection system, the Mactan-Cebu International Airport, the Light Rail Transit  Line 1 Cavite Extension, the integrated transport system-Southwest project, the Cavite Laguna Expressway, the ITS-South project, and the Bulacan bulk water supply project.

Of those, the MCX, both school infrastructure projects and the AFCS, which paved the way for the Beep card at the MRT-3 and LRT-1 and LRT-2, have been completed.