Wednesday, February 2, 2011

Gov’t offers four PPP deals

Business World Online
Posted on February 02, 2011 11:22:49 PM
BY JESSICA ANNE D. HERMOSASenior Reporter

A LIST of public-private partnership (PPP) projects up for bidding before July has been trimmed to the sale of two light railways and an airport plus construction of an expressway.

To be privatized are the Metro Rail Transit Line (MRT) 3, Light Rail Transit (LRT) Line 1 and Misamis Oriental’s Laguindingan Airport as well as implementation of phase two of the Ninoy Aquino International Airport (NAIA) expressway worth a total of $579 million, data from the Investment Relations Office (IRO) showed.
The latest list was bared in Tokyo on Tuesday where several Cabinet members attended gatherings of business leaders from both countries, the IRO said.
Auctions of other airport projects in Bohol, Puerto Princesa and Bicol have been postponed, Transportation Secretary Jose P. de Jesus yesterday said in a telephone interview.
"These are still part of the 2011 list but will probably be bid out in the third quarter instead," Mr. de Jesus said.
"It’s the preparation of the bid documents and feasibility studies [that is taking some time] but we will be able to bid them out," he added.
Investors in Tokyo were told they were "indispensable partners" in the Philippines’ development as infrastructure was "crucial in aiming for a better business environment as this will ensure a smooth and quick turnaround of goods and services at less cost," Trade Secretary Gregory L. Domingo was quoted in a statement as saying.
Energy Secretary Jose Rene D. Almendras sought investors for $40.6 billion worth of electricity generation and distribution projects needed up to 2030, his department said in a separate statement.
A growing population of power consumers that will need 16,550 megawatts in 20 years was cited in the bid to lure firms.
"In the last six months alone, there has been a surge in investments in the energy sector. About $4 billion has been pledged for new projects and we see more coming as the economy will be needing more power plants to power up its growth," Mr. Almendras said.
Finance and central bank officials also highlighted the Philippines’ "high economic growth and low inflation" and efforts to address the budget deficit, the IRO said.
The Cabinet members reportedly went on to conduct one-on-one meetings with investors as well as officials from Japan’s Ministry of Finance, Japan International Cooperation Agency and Japan Bank for International Cooperation.
The Aquino government has made PPPs a centerpiece program given its lack of revenues and the country’s infrastructure gaps.

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