Effective dispute resolution strategy sought

While the Philippine government is looking at public-private partnerships (PPPs) as one of the modes for undertaking infrastructure development, having an efficient dispute management process should be made a priority to avoid delays in implementation of projects, Singapore-based project facilitation office Infrastructure Asia said.

“An efficient dispute management process should be a priority within infrastructure project structures to mitigate the risks of a project’s complexity and high cost,” Infrastructure Asia executive director Lavan Thiru told The STAR.

He said the dispute management process should address the following concerns of project stakeholders: minimize project disruptions, preserve relationships and goodwill of all parties, and produce time and cost savings.

This, as disputes in infrastructure development are often complicated, protracted and costly.

When disputes arise in public infrastructure development, Thiru said it is not just the contractual parties who are affected, but also the whole economy and the end users as well.

He also said it is common for disputes to cause delays or disruptions.

“Such delays and disruptions will deter the benefit of public infrastructure, resulting in any additional costs arising being passed on to the infrastructure’s end users. It is, therefore, sensible and necessary to have an efficient dispute management and dispute resolution process in place for commercial parties to manage and resolve any project-related issues that can arise,” he said.

He said Infrastructure Asia is pushing for the adoption of a proactive and collaborative approach that incorporates dispute management processes into project documentation before project commencement.

“This enables disagreements to be addressed, managed or resolved during the project before they escalate into a dispute,” he said.

He said the key to a successful dispute management process is to make sure it is readily available during a project.

“This is in addition to the formal dispute resolution mechanisms available to parties if disputes remain unresolved despite undergoing the dispute management process,” he said.

National Economic and Development Authority Secretary Arsenio Balisacan has said the current administration is strongly promoting PPPs in order to accelerate the rollout and implementation of infrastructure projects.

Infrastructure Asia was set up by Enterprise Singapore, a statutory body under the Ministry of Trade and Industry, and by the Monetary Authority of Singapore to support social and economic growth in Asia through infrastructure development.

The project facilitation office works with regional governments to promote best practices in structuring bankable infrastructure projects.

In the Philippines, Infrastructure Asia is working with the PPP Center to assist agencies in the development and implementation of PPPs.

Among the projects Infrastructure Asia is working on in the country are the Ormoc City Water Supply System and Bislig City Bulk Water Supply and Septage Project.

The Ormoc City Water Supply System aims to provide a comprehensive water supply system in the city in Leyte.

Meanwhile, the Bislig City Bulk Water Supply and Septage Project is envisioned to mitigate the risks and impact of climate change by ensuring the city has access to potable water and proper septage management.

For this year, Infrastructure Asia is focusing on four priority sectors in the country in line with the Philippine government’s priorities: waste management and circularity, renewable energy, energy efficiency, and transportation.