By Lorenz S. Marasigan
SHOULD lawmakers fail to pass the proposed amendments to the build-operate-transfer law, the next administration is likely to waste up to three years just to gain momentum and effectively develop critical infrastructure through the so-called Public-Private Partnership (PPP) Program, PPP Center Executive Director Cosette V. Canilao said on Tuesday.
However, she said that if the next administration adopts the current government’s framework in moving forward with massive infrastructure-partnership deals, such a time frame may be used to implement crucial projects that are seen to spur economic growth and improve the quality of life.
“The next administration can save two to three years, and hit the ground right with the proposed PPP Act,” Canilao said. “But even without the law, if the next administration just adopts what we have right now and hit the ground running with the policies and institutional arrangements that are now in place, that will save them two to three years. It took us about that time to really gain the momentum.” Canilao’s team is pushing for the passage of the PPP Act, as it will hasten the pace of project implementation.
When approved, the PPP Act will institutionalize the Project Development and Monitoring Facility, the PPP Governing Board and the contingent-liability fund. The proposed amendments include the separation of regulatory and commercial functions of government-owned and -controlled corporations, and create a list of projects called “Projects of National Significance.”
By virtue of being included on the list of projects of national significance, projects will be “insulated” from local laws, among others by local government units.
The proposed amendments also include allowing time-bound temporary restraining order and the extension of the period for Swiss Challenge to six months from the current two-month period.
Also, the proposal will give the executive director of the PPP Center a fixed tenure, and will, likewise, make the body a voting member of the Investment Coordination Committee and the Cabinet Committee of the National Economic and Development Authority (Neda).
“In terms of just a fluid inputs from the Cabinet, with respect to infrastructure, having PPP Center there would help provide the necessary information to the President,” Canilao said. “PPPs play a big part in developing infrastructure; it might be necessary that there be an impartial body covering PPPs that is part of the Cabinet.”
Canilao is leaving office on March 8.
“I leave the [PPP] Center confident that the people who will be continuing on are steadfast, well-equipped and up to the challenge of making the program better than it is today. My heartfelt gratitude to them for trusting me,” she said.
Canilao has recommended lawyer and PPP Center consultant Andre Palacios to replace her.
“We now have a long list of projects that the private sector will hopefully continue to participate in. We have installed in our processes and legal framework a means of instituting continuity and transparency,” she said.
Since 2010 various implementing agencies have awarded 12 PPP contracts to the private partners at the national level, more than the combined six solicited projects awarded during the past three administrations.
The government is currently auctioning off 14 key infrastructure projects, which include five regional airports, a prison facility, a port modernization and water project, expressway dike, two information technology projects and three rail projects. These projects under procurement have total estimated value of P556.56 billion.
Image credits: Nonie Reyes