NEGLECTING potential bidders might cost the government more as it shifts from traditional public-private partnership (PPP) to a hybrid mode of implementing infrastructure projects, according to the PPP Center.
“We have to plan for the hybrid modality as early as now,” PPPC Executive Director Ferdinand Pecson told The Manila Times in an interview.
In a hybrid formula, the government selects, finances and builds big-ticket projects. Once completed, the project’s operations and maintenance (O&M) are auctioned off to the private sector.
“In the traditional PPP, not hybrid, the government has a private partner. The government talks to a builder, operator, to a maintenance provider as one team,” Pecson said.
“In hybrid, the private sector is not present. What they (government) can now do is to get a private partner, and have a deal that whatever is being handed over, that’s it. If not, that would be a problem. If the private partner says we want this and that, that would be an additional expense,” Pecson noted.
Earlier, Budget Secretary Benjamin Diokno and Transportation Secretary Arthur Tugade said that they prefer the hybrid mode as the traditional PPP takes 30 months before construction can begin.
The first hybrid project of the Duterte administration is the Clark International Airport.
“It is necessary to discuss with the private sector so that whatever their inputs are, it can be included in the design,” Pecson said.