PPP suffers delays amid lack of continuity policy


    THE Philippines has one of the most robust public-private partnership (PPP) frameworks in Asia but the projects continue to suffer delays due to issues relating to financing, land acquisition or contract negotiations, think tank BMI Research of the Fitch Group said.

    The absence of a policy of continuity is a risk factor that could dissuade more investors from coming in, BMI Research said in report released on Thursday.

    “Since President Rodrigo Duterte entered office in June 2016, his administration has expressed frustration on the prolonged implementation of PPP projects and cast doubt on the appropriateness of PPPs for certain infrastructure projects,” the think tank said.

    “Although Duterte has promised to honor existing projects, his secretary of finance, Carlos Dominguez, promised last year that he would ‘dramatically review’ the PPP process,” it added.

    “The Philippines has one of the most robust PPP frameworks in Asia, but continues to struggle with implementing in timely manner and generating sufficient interest to proposed undertakings,” BMI Research said in a statement on Thursday.

    “Of the 56 PPP projects launched since 2010, only four are complete as of January 2017, while many others have been repeatedly delayed by issues relating to financing, land acquisition or contract n egotiations,” BMI noted.

    The completed projects include the Automatic Fare Collection System, the NAIA Expressway Phase 2, the PPP for School Infrastructure Phase 1, and the Daang Hari-SLEX Link Road (Muntinlupa-Cavite Expressway).

    The MRT Line 7, MRT Line 1 Cavite Extension and Cavite-Laguna Expressway are examples of high-value projects which have suffered delays in implementation even after the contracts have been awarded through an efficient process.

    Ayala Corp., Megawide Construction, San Miguel Corporation and Metro Pacific Investment Corp. are among the domestic conglomerates actively involved in the PPP initiative.

    Earlier, House Speaker Pantaleon Alvarez announced that he would want to review PPP airport projects as these are not advantageous to the government.


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