THE Public-Private Partnership (PPP) Center plans to focus next year on water-related local government works amid the current government’s decision to use official development assistance (ODA) and state funds more for construction of big-ticket projects.
“There really has to be more attention on projects for local governments. The biggest sector that we have really is the water and sanitation,” PPP Center Executive Director Ferdinand A. Pecson said during a year-end press briefing yesterday at the agency’s headquarters in Quezon City.
At the same time, he said most projects that the center is looking at “still have to pass the feasibility studies stage.”
Asked how many projects the agency hopes to roll out next year, PPP Center Deputy Executive Director Eleazar E. Ricote replied: “Five to eight water-related projects in local government units (LGUs) and local districts, including unsolicited proposals.”
Those in more advances stages include the P84-million Baggao Water Supply Project currently under procurement and the Pampanga Bulk Water Supply Project unsolicited proposal of MetroPac Water Investments Corp. currently under negotiations with Pampanga’s provincial government, according to Mr. Ricote.
“We are also looking at LGUs in Bohol, Oriental Mindoro, also in Cagayan De Oro; they want to expand in sanitation, so we are talking to them. Were talking to the water districts and we’re actively assisting them with the terms of reference, procurement activities,” Mr. Ricote said.
He added that water sanitation systems in Catbalogan, San Ramon Newport Project, Samar Solid Waste Management project in Cebu, and a public market in Los Baños are also in the center’s LGU PPP pipeline.
Mr. Pecson said they may even bundle up similar projects of various LGUs to make them more attractive to prospective investors.
“Either several municipalities, or even let’s say towns and cities in one province together, to make the project bigger in scope and more interesting to investors. So that is also something that we’re looking at,” he said.
However, the PPP chief said that local governments’ limited capacity remains a constraint in undertaking otherwise vital development projects.
“One thing still that is quite universal is the lack of capabilities to develop projects. It’s true for national government agencies, but its more significant with LGUs,” said Mr. Pecson, while noting that the agency conducts training on government procurement and PPP processes.
‘THAT’S A GOOD THING’
Sought for comment, John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said in a telephone interview said that his still welcomes the move, and that it “doesn’t matter” whether the PPP Center are focusing on smaller-scale projects.”
“In general, there should be more PPPs by local governments. That’s a good thing,” said Mr. Forbes.
“I think the ‘Build, Build, Build’ is moving, and there’s plenty of projects to be done. We are extremely excited about ‘Build, Build, Build’,” he continued.
“PPP was always icing on the cake, it wasn’t the only way. It’s moving in the right direction.”
Moreover, the PPP Center remains keen on participating on national-level big-ticket infrastructure projects and hopes that Congress will approve next year proposed amendments to Republic Act No. 7718, sometimes referred to as the build-operate-transfer law that was enacted in 1994.
The amendment is one of the measures identified by Malacañang and Congress as priorities needed to spur economic development and make it more inclusive.
“Hopefully we get to that. It depends on how quickly we go to harmonize all the bills,” said Jeffrey I. Manalo, PPP Center director for Policy Formulation, Project Evaluation and Monitoring Service.
The proposed law is currently undergoing technical working group discussion under the House of Representatives Committee on Public Works, Mr. Manalo said.
The bill aims to streamline the PPP process with simplified rules, as well as improve governance and transparency standards.
“In terms of lessons learned, it would reduce the time to get these projects going. The PPP Act more clearly [defines] how complaints by losing bidders would be addressed in a more timely way. So we would address past issues,” he said.
The current government of President Rodrigo R. Duterte has shifted away from pure PPP schemes favored by the past administration of former president Benigno S. C. Aquino III, and now employs a “hybrid” type that taps state funds and ODA for the construction of priority public infrastructure, leaving PPP for the operation and maintenance of projects once completed.
By Elijah Joseph C. Tubayan
