Business World, 12 March 2013
THE DEPARTMENT of Budget and Management (DBM) has released P978.4 million to the National Kidney and Transplant Institute (NKTI) to acquire property as part of the government’s share in the public-private partnership (PPP) project for the modernization of the Philippine Orthopedic Center.
In a statement yesterday, the department said the amount will serve as the initial payment for land to be used for the project to be located in the 58,599-square meter lot currently being occupied by NKTI in Quezon City, which is under the National Housing Authority (NHA).
Specifically, the amount released by the DBM will be used to pay for 24,460.40 square meters of the NHA property, of which 8,126 square meters has been allotted for the modernized Philippine Orthopedic Center.
“The modernization of the Philippine Orthopedic Center — which will be implemented via a public-private partnership — will help bring more specialized and responsive health care services to the Filipino public. The acquisition of the unutilized portion of NKTI’s property is the first crucial step in this initiative, and is part and parcel of the administration’s goal to boost its public health campaign,” DBM Secretary Florencio B. Abad said.
The P5.6-billion PPP project, which will be implemented by the Department of Health (DoH), was approved by President Benigno S. C. Aquino III on Sept. 8, 2012.
It involves a 25-year contract for the construction as well as operations and maintenance of a 700-bed hospital inside the NKTI compound.
Under the proposed arrangement, the winning bidder will design, construct, finance, equip, operate, maintain, and then transfer the ownership of the hospital to the DoH, which will continue its operations.
Under Proclamation No. 2381, dated Oct. 1, 1984, the 58,599-square meter compound owned by the NHA has already been reserved for the NKTI.
In view of the approval of the PPP for the modernization of the Philippine Orthopedic Center the NKTI had requested funds to buy the property for P2.34 billion, with the total area valued at P40,000 per square meter.
The initial payment serves as the down payment agreed upon under the terms of the PPP.
The balance due for the rest of the property, said the DBM, will be amortized annually.
“The required funds will be included in NKTI’s subsidy,” the department said.
“The Aquino administration is keen on advancing its PPP initiatives to deepen its private sector engagements and drive more investments into public construction,” Mr. Abad said.
“The work we’re starting with the modernization of the Philippine Orthopedic Center will help reinforce this strategy, as well as address the public’s more specific health care requirements,” he added.
