Source: Philippine Star
MANILA, Philippines – The Japan International Cooperation Agency (JICA) is receptive about participating in the government’s public-private partnership (PPP) projects using a “hybrid” model, Transportation Secretary Manuel Roxas II said yesterday.
Roxas, who just came from Japan with President Aquino, made the disclosure as he reported additional foreign funding from international donors through Official Development Assistance (ODA).
Roxas said the ODA was a “good complement” to the current PPP program in fast-tracking projects lined up by the government.
He said transportation infrastructure projects will most likely be packaged in a hybrid model.
With the hybrid model, foreign donors can come in and fund heavy infrastructure projects such as airport and railroad developments, while counterpart funding will be provided by a private sector consortium once operations of these new airports and trains commence.
“The ODA loans would benefit the consumers as well since there is no rush in recovering costs. It is a cheaper yet effective option because of the sovereignty of the partnership since governments of foreign donors are involved,” Roxas said.
Roxas said the infrastructure projects that will be funded using ODA include the 11.7-kilometer railway project that will expand LRT 1 from Baclaran to Bacoor, Cavite, and the development of new airports in Misamis Oriental, Bohol and Puerto Princesa City. Currently, these priority projects are being initiated using the hybrid PPP scheme.
With ODA, the government would only pay one percent interest rate spread over 30 years, while the private sector is subject to bank rates of seven to eight percent for the same period, Roxas said.
He said the ODA-funded projects will be adopted in line with President Aquino’s 5 Rs policy – “Right project, Right quality, Right people, Right cost, and Right on time.”
Government sources said ODA has been known to be effective as funding option for big-ticket government infrastructure projects in the past, especially in the construction of more than 13,000 bridges worth billions of pesos during previous administrations.
Currently, there are about four ongoing foreign-assisted bridge construction projects, including the Mega Bridges for Urban and Rural Development project that seeks to construct 10 flyovers and 72 spans of bridges worth P9.45 billion funded by an export credit loan from the French government and the Tulay ng Pangulo para sa Kaunlaran for the construction of 17 flyovers and 30 spans of bridges worth P8.89 billion assisted by a British government-assisted export credit guarantee loan.
