MANILA – When President Benigno Aquino III delivers his fifth State of the Nation Address (SONA) tomorrow, he can claim to have awarded 7 infrastructure projects under the Public-Private Partnership (PPP) Program launched 4 years ago.

Barring last-minute hitches, another 2 projects — the P64.9 billion LRT Line 1 Cavite Extension and the P34.5 billion Cavite Laguna Expressway (Calax) — could be awarded within the next few months.

But midway through the Aquino administration’s term, the number of projects awarded to private sector partners comprises only 17 percent of the 54 lined up for the PPP Program (see chart below).

As of July 10, a number of projects of the Department of Transportation and Communications (DOTC) were moving towards formal bidding. Other projects were still in the preparation stage, with the implementing agency still drafting feasibility studies.

The government is banking on the PPP to plug the country’s infrastructure gap and create jobs in the process.

The National Economic and Development Authority (NEDA) had said the PPP initiative would require up to P739.78 billion in investments through 2016 to boost the country’s investment rate and by extension the Philippine economy.

Under its medium-term development plan, the government expects the economy to grow between 7-8 percent through 2016. The Aquino administration also aims to raise its investment rate to 18 percent of gross domestic product by the end of its term from 14 percent at present.

 

27 July 2014

By Darwin G. Amojelar