Interest from the private sector is high as various companies join the market sounding exercise for the rehabilitation/improvement and operations and maintenance of the Kennon Road held on January 31, 2020 at the Department of Public Works and Highways (DPWH) Central Office in Manila. DPWH, as the project’s implementing agency, together with the Public-Private Partnership (PPP) Center held a market sounding exercise for the Rehabilitation, Improvement and Operations and Maintenance of the 115 year-old toll road leading to Baguio City.
In his welcome remarks, PPP Center Executive Director Ferdinand A. Pecson underscored the need for the private sector to take on the responsibility of not only improving the landslide-prone road but also its operation and maintenance. “Undertaking the operation and maintenance of the Kennon road will ensure the sustainability of the project,” he said.
Meanwhile, in his keynote speech, DPWH Secretary Mark A. Villar encouraged the private sector to come up with efficient and sustainable solutions to rehabilitate and improve Kennon Road.
“We look forward to partnering with the private sector to deliver the requirements of the project. The Kennon Road is a rather difficult project, but we look forward to the efficiencies and expertise of the private sector to build it.” Secretary Villar said.
The Kennon Road rehabilitation/improvement and operations and maintenance project is being undertaken as a solicited PPP project using Republic Act 7718 or the Philippine Amended BOT Law and its Implementing Rules and Regulations as its legal framework. PPP Center Deputy Executive Director Mia G. Sebastian gave the private sector participants an overview of the PPP processes and its requirements.
The participants of the market sounding exercise were also provided an overview of the project. DPWH Undersecretary Maria Catalina E. Cabral detailed to the private sector the efforts that the DPWH has done in order to fix and maintain the landslide prone road.
“Our objective is to prevent and mitigate the road slope disasters that frequently occur along Kennon road that remain a big problem to this day. Kennon road is only open 3 times in a week, on weekends. The situation has already affected Baguio’s tourism,” Undersecretary Cabral explained.
According to the DPWH, the project will result in reduced travel time, expand the tourism industry and related business activities, even in remote communities of Kennon road and decongest the worsening traffic conditions of traveling to Baguio.
The private sector is expected to provide solutions to identified disaster prone sites within the project site, replace the existing bridges with the current 10T capacity, put up a toll system and operate and maintain the Kennon toll road. In its briefing, the DPWH said that the preparation for the feasibility study and approval of the documents is set for the 2nd quarter of 2020. Meanwhile, they target to get the Kennon road project approved by all approving entities by the 3rd quarter of 2020. The DPWH hopes to publish its Invitation to Apply for Eligibility and Submit proposal by the 3rd quarter of this year and conduct the prequalification of potential private partners before the end of 2020. Bid submission is set to happen in the first quarter of 2021 with both the Notice of Award and Contract signing as well as ground breaking by mid-2021.
