PPP Center Launches 5 PPP Projects and New Satellite Office

A March 4, 2011 press release prepared by the Department of Finance

The Public-Private Partnership (PPP) Center launched the first batch of PPP projects for 2011 last March 7 in its newly inaugurated PPP Center Satellite Office in the Development Bank of the Philippines (DBP) Building in Makati City.

“The PPP Center is open for business and we are kicking it off with the launch of the first five PPP projects for 2011,” said PPP Center Executive Director Philamer Torio.

“Created under Executive Order 8 s. 2010, the PPP Center is responsible for providing advisory services and technical assistance to government institutions on their PPP programs and projects, as well as managing and administering the Project Development and Monitoring Facility (PDMF),” Torio added.

The PDMF is a funding facility that will be used to help implementing agencies to structure, prepare and competitively tender bankable PPP projects.

Meanwhile, the five projects presented were the Ninoy Aquino International Airport (NAIA) Expressway Phase II, the North Luzon Expressway-South Luzon Expressway (NLEX-SLEX) Connector, the Daang Hari-SLEX Link Road Project, and the privatization of the Metro Rail Transit (MRT) 3 Operation and Maintenance (O&M) and of the Light Rail Transit (LRT) 1 O&M . The last two are part of the MRT-LRT Expansion program.

The NAIA Expressway Phase II project will link Skyway and Manila-Cavite Coastal Expressway, providing vital access to NAIA Terminals 1, 2, and 3. The PhP10.59 billion project will also benefit economic zones in Cavite through the quicker transportation of products to NAIA as well as the Manila Port.

Additionally, the PhP21-billion NLEX-SLEX Connector involves the construction of an elevated expressway over the Philippine National Railway right of way from Caloocan City to Makati City. The project aims to close the gap and complete the north-south Luzon industrial beltway transport axis by connecting NLEX and SLEX.

Daang Hari-SLEX Link Road Project will build a toll road that will connect Bacoor, Cavite to the South Luzon Expressway, passing through the New Bilibid Prison Reservation. The project, which will cost PhP1.6 billion, will complement the Cavite-Laguna-east-west highway and will provide additional access for the increasing traffic between Metro Manila and Cavite.

The NAIA Expressway Phase II and the NLEX-SLEX Connector will be implemented by the Department of Public Works and Highways (DPWH) while the Daang Hari-SLEX Link Road will be undertaken by the Department of Trade and Industry through the National Development Company (NDC).

On the other hand, the Department of Transportation and Communication (DOTC) will implement the privatization of the O&M of rail lines MRT3 and LRT1.

The two privatization projects aims to outsource to private sector service providers the O&M of each line for an interim period of 3-4 years. After this O&M period, the LRT Line 1 South Extension Project contractor is expected to assume overall responsibility for the integrated LRT Line1 and MRT Line 3 systems.

The privatization of the O&M of MRT3 has an estimated cost of PhP6.3 billion while the privatization of the O&M of LRT1 is estimated to cost PhP7.7 billion.

During the event, the PPP Center also launched its new website, which holds new and more detailed information on the PPP program.

“The PPP Center website contains documents to guide investors through the government’s PPP program. It hosts contract templates, frequently asked questions (FAQs), the project approval process flow, the role and functions of the PPP Center, and the profile of the first batch of PPP projects,” Torio said.