Department of Education, 25 October 2013

The Department of Education (DepEd) accepted around 500 classrooms constructed under the Public-Private Partnership (PPP) for School Infrastructure Project Phase 1 (PSIP 1) for Regions 3 and 4A. PSIP 1 aims to supplement the DepEd’s efforts to address classroom needs.

Secretary of Education Armin A. Luistro said the partial turnover of completed classrooms is part of the continuing effort to steadily close the gap of the 66,800-classroom backlog. “With the help of the private sector we are confident that we can deliver our commitment to public school students.”

Luistro added that this is the first successful public-private partnership project in the country. PSIP enables the government to fast track the construction and delivery of classrooms within the fiscal ceiling as well as improve and introduce innovations in the design, methods, and materials for classroom construction.

The over 120 units of one- and two-storey school buildings were completed by one of the winning contractors – Megawide Construction Corporation and turned over in a ceremony at the San Jose del Monte National Trade School attended by delegations from the recipient schools on Aurora, Nueva Ecija, Tarlac, Pampanga, Bataan, and Bulacan.

DepEd awarded the first three contracts under the PSIP on October 2012 through the Build-Operate-Transfer Law.

PSIP involves the design, construction, maintenance, and financing of 9,303 classrooms equipped with school furniture, fixtures, and toilets for 2,204 public elementary and secondary schools in Regions 1, 3, and 4A over a 10-year case contract. The PSIP has a total approved budget of 16.427 billion pesos.

As a result of competitive bidding, the total contract price was16.28 billion pesos. Two of the three contracts were awarded to Megawide Construction Corporation for Regions 3 and 4A. The other winning bidder is BF Construction Corporation for Region 1.

Under the Build-Transfer agreement, the two proponents have 16 months (from date of contract signing) to complete the construction and delivery of school facilities. The 10-year lease will commence from the completion of construction work. Periodic maintenance activities will be undertaken every 4.5 years from the start of the lease period.