11 July 2012, Business World Online
by Franz Jonathan de la Fuente
THE VALUE of local public infrastructure launches grew by double-digits last month versus the month prior, thanks partly to the increased roll out of public-private partnership (PPP) projects in the period, according to construction media group BCI Asia Philippines, Inc.
A recent BCI Asia Philippines study showed that total construction starts expanded by 56% to P4.5 billion in June from P3.2 billion in May, with launches from the civil sector more than doubling to P4.1 billion versus P1.9 billion in the previous month.
“These figures are signs of commencing PPP projects and it is encouraging to see that more and more projects are coming out from the government pipeline,” Ian Paolo T. Reyes, BCI Asia Philippines chief data analyst, said in a statement released last week.
Further state spending should help spur economic growth and construction starts moving forward, Mr. Reyes added.
No other details were provided on the group’s research.
The Philippine Constructors’ Association, Inc. (PCA) earlier said that the PPP program, one of the factors that could positively impact the local construction sector this year, could be aided by easier financing brought about by the country’s robust economic fundamentals.
“With the current low-interest rate regime, available liquidity in the domestic market and the proven competence of the local construction companies, a significant number of high-impact [PPP] projects can be financed locally,” the PCA said in its 2011 country report posted on its Web site.
The state-run PPP Center has already identified 22 PPP projects set for roll out as of end-May, with eight previously tagged for bidding in 2012.
Two projects have already advanced in the bidding process this year, including the P10.04-billion PPP School for Infrastructure Project, where six groups have already pre-qualified to bid for the design, finance, and construction of about 9,300 classrooms in Regions I, III, and IV-A.
On the other hand, bidding for the P59.20-billion Light Rail Transit-Line 1 South Extension — which will add an 11.7-kilometer line from Pasay City to Bacoor, Cavite — was announced in May, with pre-qualification bid invitations being published on June 4.
Only one PPP project — the P1.96-billion Daang Hari-Southern Luzon Expressway link won by Ayala Corp. last December — has been awarded since the government’s flagship infrastructure program was launched in 2010.
BCI Asia, BCI Asia Philippines’ regional affiliate, claims to be the region’s leading construction media association, with 14 offices and 250 staff, reporting on approximately $400 billion worth of construction projects, according to its Web site.
It is the group behind the BCI Asia Awards, which annually recognizes the country’s top 10 architects and property development firms. — Franz Jonathan G. de la Fuente
