When Transportation Secretary Arthur Tugade talked of “revisiting” the vision for public-private partnership deals last July, few in the private sector could have anticipated the drastic impact it would have on the cornerstone initiative of the Aquino administration.
More than nine months since the announcement, the pace of PPP deals, long-derided for not moving fast enough, has all but ground to a halt.
Of the PPP projects under procurement by the time President Aquino’s term ended, the Duterte administration has identified two deals it would pursue.
These are the P50-billion regional prison facilities, beset by a string of delays, and the auction for five regional airports, collectively valued at P108 billion. The latter recently underwent a controversial “unbundling” process that led several earlier-qualified candidates to question whether they would still participate.
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All the rest, including big-ticket railway and seaport projects, have been placed on review. Even newer deals, like a P74-billion deal to develop and operate the Ninoy Aquino International Airport, a project that grew intense private-sector interest, face uncertainly. The Naia project was approved by President Duterte last year, only to be placed on hold as the Department of Transportation finalizes its airport policy.
Meanwhile, legislation to institutionalize the PPP Program’s reforms via the PPP Act remains pending in Congress.
