July 8, 2011, BusinessWorld Online

A REVIEW of the first public-private partnership (PPP) project offered by the government could end up with the deal being taken off the auction block, a Cabinet official yesterday indicated.

Newly-appointed Transportation Secretary Manuel A. Roxas II told a radio station that his plan to review all deals in the pipeline included the P15-billion operations and maintenance contract for Metro Manila’s Light Rail Transit 1 (LRT-1) and Metro Rail Transit 3 (MRT-3).

Over 40 firms including Ayala Corp., Metro Pacific Investments Corp. and San Miguel Corp. earlier this year indicated their interest in the project. Eighteen firms paid P500,000 each for bid documents and the Transportation department previously said it expected offers to be submitted by July 11.

“We’re studying [the deal]. I just want to make sure that the government cannot do the project itself,” Mr. Roxas said in the radio interview, adding that he “wants to make sure the government and the people will not be … disadvantaged…”

Officials of the interested companies were not immediately available for comment.

The Aquino administration’s centerpiece PPP program has been hit by delays and still has to take off despite having been announced with fanfare last year. The government has said it could offer as many as 12 deals this year but only the MRT-LRT project is in the relatively advanced stage.

The delay, however, is so far not a concern for the Philippine Ports Authority, which said it is aiming to auction at least two contracts next year.

The agency’s general manager, Juan C. Sta. Ana, told reporters the facilities being eyed for auction include the Manila Bulk Terminal and the ports of Davao, Cagayan de Oro, Zamboanga, General Santos and Iloilo.

“For the bulk terminal, we are already preparing the terms of reference … [we are] expecting to auction it for the first half of 2012,” he said, possibly to be followed immediately by the sale of the port of Davao.

“After the Manila Bulk Terminal and the Davao port, then the others will follow,” Mr. Sta. Ana said.