Despite efforts by the government to fast-track the approval process, only four of the 10 priority public-private partnership (PPP) projects may be rolled out by the end of 2011.
In a statement, the PPP Center said two projects “the Daang-Hari Slex Link Road Project and the Nlex-Slex Connector Project” are currently on track. The Daang-Hari Slex project has been bidded out, while the negotiated project and contract for the connector project is expected to be approved by the Investment Coordination Committee (ICC) in October.
The two other projects—the DepEd PPP for Classrooms Project and the DOH Vaccine Self-Sufficiency Phase II project—will be rolled out by year-end, it said.
Since the beginning of 2011, the PPP Center has already screened 39 proposals that have the potential to be undertaken as a PPP project. These were screened according to their significant contribution to the Philippine Development Plan and the value for money they present to investors. From the 39, 10 priority projects were processed and identified as ready for rollout by 2011.
The Department of Health’s (DOH) Vaccine Self-Sufficiency Project Phase II has been recently approved as a PPP priority project and deemed eligible for funding under the Project Development and Management Facility (PDMF) of the PPP Center.
DOH’s Vaccine Self-Sufficiency Project is expected to reduce the overall cost for its annual vaccine procurement by at least 20 percent to 30 percent. Under the project, formulation, packaging and labeling of certain Pent V Plus vaccines for diptheria, pertussis, tetanus, hepatitis B, haemophylus influenza B, tetanus toxoid and single-dose hepatitis B will be done locally.
The PDMF is a revolving fund that is currently open for access to government agencies and local government units for projects that can be specifically undertaken through the PPP scheme. The PDMF provides funds for preinvestment activities like the preparation of business cases, prefeasibility and feasibility studies, tender documents, including the drafting of PPP contracts.
The government has allocated P300 million for the PDMF pursuant to Executive Order 8, series of 2010. The government’s contribution will soon be supplemented by $6 million from the Australian government through the Asian Development Bank.
“The PPP Center sees the PDMF as an alternative strategic tool to pursue social infrastructure projects. Areas that are traditionally not seen as infra projects like health can still undertake PPP that will allow for the delivery of quality services to the people,” PPP Center Executive Director Philamer Torio explained.
“PPP is not just about building roads and airports. It is also about addressing the most basic social services that government should be able to provide but don’t have the resources to do it,” he said.
The DepEd, meanwhile, intends to address the 150,000 classroom shortage by undertaking PPPs. The PPP Center earlier said that the DepEd expects to build around 10,000 to 20,000 new classrooms per year.
The project is still being packaged by the PPP Center.
According to a study made by the Nomura Research Institute and commissioned by the Japan International Cooperation Agency (Jica), it is imperative for the PPP Center to exercise due diligence in administering the government program.
This is important because ensuring transparency and the financial viability of each PPP project is a lengthy process that demands longer periods of scrutiny and evaluation.
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By: Cai U. Ordinario
Source: Business Mirror, Aug. 28, 2011
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