Taking a second look at PPP

An analyst believes the project could signal the Duterte administration’s paradigm shift after looking at the PPP scheme with derision

In these times when just about everybody is reeling from the effects of the pandemic, it certainly is welcome news that the Bulacan airport that San Miguel Corp. is constructing will create up to a million jobs, with 450,000 workers to be hired during its construction phase alone.

The long-delayed airport project will be done under the government’s Public-Private Partnership (PPP) initiative, which means the government will not spend a single centavo. San Miguel puts up the funding, builds the airport, gets paid by operating it for 50 years, and turns over the project to the government.

An analyst believes the project could signal the Duterte administration’s paradigm shift after looking at the PPP scheme with derision. During its early years, the Duterte administration, he says, has scoffed at the protracted execution and

lulls in PPP projects.

Since the program began in the third quarter of 2010 during President Benigno S. Aquino III’s administration, only four of the 56 PPPs that were initiated had been completed as of end-2016. The delays were caused by funding, right-of-way acquisition and contract changes.

When China came into the picture, the government shifted to Official Development Assistance for infrastructure projects and less PPP. Finance Secretary Carlos Dominguez III reasoned out then that avoiding the PPP route would fast- track completion and save on costs on certain infrastructure projects.

With the country cozying up to China, the Duterte administration had taken a “government- centered investment approach,” in sharp contrast to Noynoy’s reliance on PPP to finance big-ticket infra projects.

But as the pandemic took its toll worldwide, the pledged financial assistance likewise slowed down to a crawl and with it the much-ballyhooed infra projects.

In light of this, the 2,500- hectare Bulacan airport project under the PPP scheme is considered by many as a step in the right direction. It would do the Philippines good, pundits say, if it enters into more similar undertakings. LP

Cause of downfall

A little birdie told us that among other reasons, it was the budget of the Department of Public Works and Highways (DPWH) that caused the “downfall” of former Speaker Alan Peter Cayetano.

During House plenary deliberations on the proposed 2021 budget of DPWH, Cebu City 2nd Dist. Rep. Rodrigo Abellanosa reportedly brought up anew the alleged “inequitable” allocation of infrastructure funds among legislators of the lower chamber.

He then showed a video of flooding in Cebu City which, he said, highlights the city’s “dire need of the much-needed support” for infrastructure improvements through DPWH.

Abellanosa reportedly pointed out to Cayetano and his close allies the allocated infrastructure funds for the two districts of Cebu City from those earmarked to the congressional districts of the Taguig- Pateros congressman and his supporters at the House.

Our little birdie quoted the lawmaker as saying that while Cayetano and his allies were “wallowing in tens of billions of DPWH allocations for their districts,” the two districts of Cebu City were only accorded less than half a billion each.

It’s such a pity, he says, because Cebu City has a substantial contribution to the

national coffers.

“Compare this with what we have heard about the P11 billion for Camarines Sur through the clout of former Deputy Speaker LRay Villafuerte. Compare this to the reported P8 billion for Taguig through the clout of the former Speaker Cayetano,” he said.

Abellanosa allegedly also lamented the P500 million that the DPWH “generously accommodated” for the construction of the Capitol building of Camarines Sur, as well as the P250 million for the sports complex in the said province.

“Para bagang ang katapat lang ng budget ng Cebu City ay Capitol building at sports complex lang ng CamSur,” Abellanosa was quoted to have said.

We all know what happened next. Over 200 solons booted out the erstwhile speaker and installed Marinduque Rep. Lord Allan Velasco to the top post.