Faster completion seen for airport projects funded by gov’t, official development assistance

THE government yesterday said that internal funding and off icial development assistance (ODA) are “faster and more eff icient” for building much-needed airport upgrades compared with PublicPrivate Partnerships (PPPs).

Transportation OIC Undersecretary for Air Manuel Antonio L. Tamayo said in a statement yesterday that the change in the procurement mode for projects initially announced as PPPs will not necessarily delay the implementation of the projects.

“Through this decision, we expect project completion to be faster and more eff icient. Further, this would help avoid legal issues with concessionaires that may cause regrettable delays,” Mr. Tamayo was quoted as saying.

The lack of a comprehensive plan for developing the airport system has been cited as delaying the implementation of much-needed aviation projects, contributing to congestion in the air traffic system.

The government announced on Tuesday that it terminated the PPP mode of procurement for the regional airport projects, with the implementing bodies — the Department of Transportation (DoTr) and Civil Aviation Authority of the Philippines — deciding they “would be implemented through other modes” particularly through funding from General Appropriations Act (GAA) or through ODA.

“This decision was brought about through collegial discussions, including the economic clusters and congressional leaders,” the DoTr said.

First offered in bundles to private sector investors in December 2014 under the previous administration, bidding for the development, operations and maintenance of New Bohol (Panglao), Davao, Iloilo, Laguindingan ( Northern Mindanao) and Bacolod Airports did not go ahead despite the prequalification of five groups.

In November, the National Economic and Development Authority Board approved the unbundling of the five airport projects, leading the DoTr on Jan. 25 to publish anew a call for prospective investors.

The DoTr assured yesterday that “payments for the Invitation Documents shall be refunded to both previously prequalified — for the bundled projects — and new — for the unbundled projects — bidders at the soonest possible time” based on a Memorandum dated May 16.

Transportation Secretary Arthur P. Tugade earlier said: “Doing the airports on GAA makes the projects cheaper as cost of money is lower, thus, more beneficial to the public, project completion is more efficient and faster, and helps avoid level surprises that may cause regrettable delays.”

The regional airports would have been the second airport project to be implemented under the PPP scheme after the development of the new Mactan-Cebu International Airport that was awarded in 2014 to Megawide Construction Corp. and its joint venture partner, Bangalore-based GMR Infrastructure Ltd.

This is the first PPP project rolled out by the current government that took over at the end of June 2016.