₱110-B unbundled regional airport projects removed from PPP bidding
The R110.42-billion development, operation and maintenance of five regional airports - New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod – will no longer be done via Public-Private Partnership (PPP).
The Department of Transportation (DOTr) and Civil Aviation Authority of the Philippines (CAAP) decided that the projects would be implemented through “other modes,” according to a PPP Center statement issued yesterday.
Originally, the Investment Coordination Committee (ICC) and the National Economic Development Authority (NEDA) Board approved the regional airport projects under a bundled PPP structure, followed by a procurement process in accordance with the Build-Operate-Transfer (BOT) Law.
The five regional airports include Davao, with a project cost of R40.57 Billion; Laguindingan, R14.62 billion; New Bohol (Panglao), R4.57 billion; Bacolod, R20.26 billion and Iloilo, R30.40 billion.
The PPP projects are meant to improve the regional airports services by allowing private sector partners to take care of the airports’ airside and landside facilities in line with the government's development of international gateways in the countryside.
Last November 14, 2016, the NEDA Board approved the unbundling of the regional airport projects and on January 24, 2017 the DOTr published an advertisement inviting new players to participate in the bidding of the airport projects.
Several international and local companies attended the PPP’s pre-qualification conference on March 13, 2017. However, the DOTr moved the deadline for submitting the qualification documents for next month, June 15, 2017.
Suddenly, the PPPC yesterday “received confirmation that the procurement of the Regional Airport PPP Projects has been terminated”, the Center stated.
“While the PPP Center believes in the credibility of these airport projects structured as PPP, and gratefully acknowledges the solid interest of the private sector, we respect DOTr’s and CAAP's authority and their decision to terminate the projects.”
And despite the government’s decision to shift to “other modes” to develop the R110.42 Billion Regional Airports, the PPP Center “remains ready and committed to support government agencies in their infrastructure and development projects”.
Already, “the critical foundations of the PPP Program have been laid down, and the institutions, both in the public and private sectors, are ready to deliver”.
Awarded PPP projects include the Mactan Cebu International Airport (MCIA) Passenger Terminal Building, NAIA Expressway, PPP for School Infrastructure Project (PSIP), and the Automated Fare Collection System (AFCS) or Beep Card.
PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach, such as Design-Build-Operate-Maintain schemed in order to save on procurement timing, reduce interface risks, and avail of private sector's technology and efficiency, the Center concluded.