Thursday, January 5, 2012

Eight major PPP projects set for bidding

Manila Times.net
Published : Thursday, January 05, 2012 00:00 Written by : Darwin G. Amojelar Senior Reporter


THE Aquino administration plans to accelerate the implementation of its public-private partnership (PPP) program, targeting to bid out eight to 16 projects this year.
In a briefing, Cosette Canilao, PPP Center executive director, told reporters on Wednesday that the indicative cost of the eight to 16 projects to be rolled out this year amounts to between P80 billion and P142 billion.


“The country’s PPP program is now on an accelerated mode. We have rigorously and diligently established the groundwork for the successful implementation of PPP projects, providing our IAs [implementing agencies] with the support that they needed to make this a reality,” he added.


The list of 16 projects include the P25-billion Metropolitan Waterworks and Sewerage System New Water Supply; P900-million Vaccine Self-Sufficiency Program of the Department of Health; P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; P20-billion Balara Water Hub; P19.69-billion CALA (Cavite and Laguna Side) Expressway; P11.3- billion Light Rail Transit 2 East Extension; P10.4-billion PPP for School Infrastructure Project (Batch 1); P10.15-billion Mactan Terminal 2 Airport Development; and P8-billion New Bohol Airport.


Other projects include the P7.8-billion Laguindingan Airport Operations and Maintenance; P5.3-billion Cold Chain Systems Project; P5-billion Modernization of the Philippine Orthopedic Center; P4.2-billion Puerto Princesa Airport; P1.8-billion Common Fare Collection System; P1.5-billion Rehabilitate-Operate-Transfer of the Ambuklao Hydro Electric Power Plant Turbines 4 and 5; and P1.25-billion Grains Central Project.


Pre-investment financing
Canilao said that the bulk of these projects to be rolled out are with pre-investment financing support from the P300 million Project Development and Monitoring Fund.


Of the total P300 million, Canilao said that the company spent P284 million for 10 PPP projects.


“The roll out of these projects would depend on the feasibility studies and the approval of NEDA [National Economic Development Authority] board,” Canilao said, adding that both foreign and local investors are interested to participate in the government’s PPP program.


“We see 2012 as breakthrough for the country’s PPP program. Coming from a great challenge in 2011, the program now emerges with a significantly more stable state of equilibrium that will propel the program to its promised success,” she added.


In November 2010, the government presented to local and foreign investors 10 priority infrastructure and transportation projects for PPP.


But out of the 10, only the Daang Hari Road linkup to the South Luzon Expressway was auctioned off by the government.


Ayala Corp.’s P902-million bid bested the P608-million offer of its only rival, San Miguel Corp., and was nearly triple the floor price of P371 million.


The project involves the construction, operation and maintenance of a four-kilometer road linking
Daang Hari Road in Cavite to the SLEX under a 30-year concession.


She added that the PPP Center also identified the nine national and international consulting firms to assist the implementing agencies to conduct pre-investment studies.


“By end of this month, we’re looking at increasing our panel of advisors,” Canilao said.


The nine transactional advisors for the PPPs include the Filipino consortium of KPMG whose lead firm is the Manabat Sanagustin & Co. CPAs; Dutch consortium led by Rebel Group International BV; Indian groups led by Deloitte Touche Tohmatsu India Pvt. Ltd. and another one led by ICRA Management Consulting Services Ltd.; and Canadian consortium led by CPCS Transcom Ltd.


Other accredited groups are the Singaporean consortium led by Pricewaterhouse Coopers Services Llp.; European consortium led by Hill International SA; and Australian groups separately led by Ernst & Young Australia Infrastructure Advisory and SMEC International Pty. Ltd.

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