Despite delays in the procurement process for three public-private partnership (PPP) projects for the Philippines, the government will continue its investments in infrastructure-building.
As Transportation Secretary Joseph Emilio Abaya pointed out at the 2013 economic briefing, projects that suffered delays include:
* Light Rail Transit (LRT 1) Cavite extension: the biggest under the PPP costing approximately US$1.4 billion, the August 15 bidding was declared as a failure after its lone bidder failed to meet the bidding requirements. The reauction was moved from the end of this year to early 2014.
* Mactan Cebu International Airport: the bidding originally scheduled for Aug 28 was moved to Nov 15, following a major overhaul of the concession agreement.
* Cavite-Laguna Expressway: submission of prebidding documents was moved from Sept 23 to Oct 23 upon the request of bidders.
Abaya said these delays are due to the “complicated and sophisticated” process of partnering with the private sector.
National Competitiveness Council Chairman Guillermo Luz, who also sits on the PPP governing board, said that a slow start of PPP projects is not a unique problem to the country. According to data from the PPP center, the Philippines is on average spending 14 to 18 months in the procurement process, and noted that other countries using the PPP scheme, such as the U.K., Canada, Australia, India, Europe and South Africa, had spent approximately 16 to 35 months.
Michael T. Rodriguez, MD at Macquarie Infrastructure and Real Assets, emphasized that the government's struggles in bidding out infrastructural projects is only temporary, as PPPs will not only help build the much-needed infrastructure, but will also enhance the capability of the government in partnering with private firms. He also urged the government to ensure that PPPs are continued even after the end of President Noynoy Aquino's term in 2016.