Gov't stops regional airport projects bidding

The government has stopped the bidding for the Regional Airport Projects under the public-private partnership (PPP) scheme , the National Economic and Development Authority (NEDA) confirmed yesterday.

“The government, through the implementing agencies, the DOTr and CAAP, decided that the projects would be implemented through other modes,” the PPP center said in a statement, as relayed by NEDA. 

The NEDA Board approved last year the unbundling of the contracts for the development, operations and maintenance of the New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod airports.

Before the cancellation,  DOTr had moved the submission of the qualification documents to June 15 from May with bid submission slated for December.

With the termination of the PPP process, NEDA Undersecretary for Investment Programming Rolando Tungpalan said the hard infrastructure would now be funded through general appropriations while other modes of financing and implementation would be considered for the operations and maintenance (O&M) component of the projects.

PPP Center executive director Ferdinand Pecson said the cancellation of the PPP process for the regional airport projects was conveyed during the meeting of the NEDA- Investment Coordination Committee- Cabinet Committee (ICC-CabCom) last week.  

“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 the DOTr’s and CAAP’s authority and their decision to terminate the projects,” said the PPP Center in the statement.

Despite the scrapping of the airport projects from the PPP pipeline, the center said the country’s PPP scheme “remains a viable option in the procurement of infrastructure projects” especially those that require an integrated approach (design-build-operate-maintain) to shorten the procurement process, reduce risks and take advantage of the private sector’s technological expertise and efficiency.

“Notwithstanding this development, the PPP Center remains ready and committed to support government agencies in their infrastructure and development projects. 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,” the center said.

 

Source: 

The Philippine Star