Gov't terminates PPP process for 5 regional airports


Posted at May 23 2017 08:47 PM

MANILA - The government will no longer fund the construction and upgrade of several regional airports via Public-Private Partnership (PPP). 

The Department of Transportation (DOTr) announced Tuesday that development of the Bacolod-Silay Airport, New Bohol Airport, Davao International Airport, Iloilo Airport, and Laguindingan Airport will now be funded through Official Development Assistance or via their inclusion in the national budget through the General Appropriations Act. 

Collectively, the 5 airport projects are worth over P110 billion. 

The PPP Center, which is the main driver of the PPP Program, acknowledged the cancellation of the PPP projects by the DOTr and the Civil Aviation Authority of the Philippines. 

Despite this, the PPP Center said public-private partnerships are still worth pursuing in infrastructure development. 

"It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach (i.e. design-build-operate-maintain) in order to save on procurement timing, reduce interface risks, and avail of private sector’s technology and efficiency," the agency said in a statement on its website. 

The government has said that it intends to borrow more and raise the budget deficit to finance its ambitious infrastructure program that would total around P8 trillion pesos until the end of President Duterte's term.

Projects under the PPP were originally projected to total P472 billion.