Source: Malaya, 14 February 2012
THE government has allocated P19.6 billion in counterpart fund this year for the Aquino administration’s Public Private Partnership (PPP) program, the Department of Budget and Management (DBM) said.
The counterpart fund is 56.8 percent higher than the P12.5 billion allocated in the previous year.
“The increased funding for PPPs will help the administration’s PPP program gain more traction this fiscal year, enabling us to fill infrastructure gaps and optimize our economic growth,” said Budget Secretary Florencio Abad.
“We also expect to see concrete results for our private sector partnerships earlier this year,” he said.
Of the total allocation, P8.6 billion will be given to the Department of Transportation and Communication (DOTC), P4 billion to the Department of Education (DepEd), P3 billion to the Department of Health (DOH), P3 billion to the Department of Public Works and Highways (DPWH), and P1 billion to the Department of Agriculture (DA).
“By providing ample counterpart funding for our public-private partnerships, the Aquino government hopes not just to increase private participation in key sectors, but also to boost our ability to respond to high-demand public services,” Abad said.
“The multiplier effect of successful PPP projects will certainly be felt in the economy, particularly with respect to our infrastructure spending,” he said.
The P8.6 billion fund of the DOTC will be used to implement several PPP projects, such as the Panglao airport in Bohol, the Puerto Princesa airport in Palawan, the New Legazpi Airport in Albay, the LRT Line 1 South extension and privatization, the MRT/LRT common ticketing project.
The DepEd’s P4-billion fund will be used to support the school infrastructure project, while the DOH’s P3 billion counterpart fund will be for the construction and maintenance of health centers and hospitals.
The P3 billion fund of the DPWH will be used to cover right-of-way costs, feasibility studies, and independent consultations for various PPP projects this year.
DPWH projects that will receive support are those for the Tarlac-Pangasinan-La Union toll expressway (TPLEX), Daang-Hari-SLEX link road, NAIA expressway, CALA expressway project (Cavite side), and Manila North expressway.
PPP projects that will be supported by the DA’s P1 billion counterpart funds are the corn bulk handling and trans-shipment system project; the establishment of rice centrals, processing and service centers; and the establishment of a cold chain system for strategic areas in the country.
“The Aquino administration’s PPP thrust innovates on traditional methods for spurring economic growth in the country,” Abad said.
“This year, we take an even more vigorous approach at tapping the resources made available to us by the private sector. This will help us quicken the pace of project implementation and ultimately allow us to deliver critical services in a faster, more efficient way,” he said.
Last year, a P12.5-billion fund under the 2011 budget was distributed to implementing agencies to support their respective PPP projects. Of the said amount, P2.5 billion was given to the DA, P5 billion to the DPWH, and another P5 billion to the DOTC.
A total of 16 PPP projects are being prepared for 2012.
Cosette Canilao, PPP Center executive director, earlier said that at the very least, eight projects will be rolled out this year.
It is estimated that all of the projects cost between P80 billion and P142 billion. The sharing of the costs of the projects between the government and the private sector has not been figured out pending finalization of feasibility studies.
